Down Payment Assistance Programs Houston Buyers Can Use

Quick answer

Houston and Texas buyers have several down payment assistance options, most offering around 3% to 5% of the loan amount or, for the City of Houston program, up to $75,000. The main sources are TDHCA (the state housing agency), TSAHC (a separate state housing corporation), and the City of Houston Homebuyer Assistance Program (HAP). Most require a credit score around 620, income limits, and a homebuyer education course. Sources dated 2026 are listed at the end.

A down payment is often the biggest hurdle for Houston first-time buyers, bigger than the loan's credit minimum itself. Texas runs several assistance programs built for exactly this gap. None of them are run by Warens Financial Group; we help buyers apply their rules to a real loan file. This guide covers the three programs Houston buyers ask about most, how they differ, and what to check before counting on one.

Which down payment assistance programs can Houston buyers use?

The three programs Houston buyers use most are TDHCA, TSAHC, and the City of Houston Homebuyer Assistance Program. Each is run by a different agency, with its own assistance amount, repayment structure, and eligibility rules.

Houston and Texas down payment assistance programs
Program	Assistance	Typical credit minimum	Repayment
TDHCA: My First Texas Home / My Choice Texas Home	Up to about 5% of the loan amount	620	A deferred second lien, as either a forgivable option (generally 3 years) or a repayable option due at sale, refinance, or payoff
TSAHC: Home Sweet Texas / Homes for Texas Heroes	About 3% to 5% of the loan amount	620 (640 for conventional loans and for FHA loans that need manual underwriting)	A grant, or a deferred second lien, as either a forgivable option (generally 3 years) or a repayable option due at sale, refinance, or payoff
City of Houston Homebuyer Assistance Program (HAP)	Up to $75,000	Varies by participating lender	Forgivable loan, generally 5 years for assistance up to $50,000 and 8 years above that

Sources: TDHCA (2026); TSAHC Homes for Texas Heroes Program and TSAHC Loans and Down Payment Assistance (2026); City of Houston Housing and Community Development Dept., Homebuyer Assistance Program Guidelines 8.0 (2026). Figures are typical; program terms and amounts change and vary by lender. Full links at the end of this article.

Important: these programs are run by their own agencies, not by Warens Financial Group, and none of them guarantee approval. Income limits, purchase-price limits, and lender participation all affect whether a specific program fits your file.

What is TDHCA My First Texas Home and My Choice Texas Home?

TDHCA is the Texas Department of Housing and Community Affairs. My First Texas Home and My Choice Texas Home pair a 30-year fixed-rate mortgage with down payment assistance of up to about 5% of the loan amount.

My First Texas Home is built for first-time buyers, generally defined as not having owned a home in the past 3 years. My Choice Texas Home can be open to repeat buyers as well, depending on current program rules. Both pair the assistance with a fixed-rate first mortgage, and both require a homebuyer education course and compliance with income and purchase-price limits that TDHCA sets and updates. The assistance is a deferred second lien with no monthly payment, offered as either a forgivable option, generally forgiven after 3 years of continued ownership, or a repayable option that becomes due when you sell, refinance, or pay off the first mortgage.

Source: TDHCA, Texas Homebuyer Program (2026); Mortgage Info, "TDHCA 2026: My First Texas Home" (2026).

What is TSAHC Home Sweet Texas and Homes for Texas Heroes?

TSAHC is the Texas State Affordable Housing Corporation, a separate agency from TDHCA. Its Home Sweet Texas and Homes for Texas Heroes programs offer down payment assistance of about 3% to 5% of the loan amount, as a grant or a deferred second lien that is either forgivable or repayable.

Homes for Texas Heroes is TSAHC's track for teachers, firefighters, police, corrections officers, EMS personnel, and veterans, and it can be paired with a Mortgage Credit Certificate. Credit minimums generally sit around 620, though TSAHC asks for 640 on conventional loans and on FHA loans that need manual underwriting. You can generally choose between a grant and a deferred second lien, and the second lien itself comes as either a forgivable option, forgiven after 3 years of continued ownership, or a repayable option due at sale, refinance, or payoff. See our FHA loans overview for how that pairing typically works.

Source: TSAHC, Homes for Texas Heroes Program and Loans and Down Payment Assistance (2026); Styer Mortgage, "2026 Texas Down Payment Assistance Programs" (2026).

What is the City of Houston Homebuyer Assistance Program?

The City of Houston Homebuyer Assistance Program (HAP) can provide up to $75,000 toward a down payment and closing costs, structured as a forgivable loan for buyers purchasing inside Houston city limits. The forgiveness period is generally 5 years for assistance up to $50,000 and 8 years for assistance above that.

HAP is run by the City of Houston Housing and Community Development Department, separate from the state programs above. Typical requirements include household income at or below 80% of Area Median Income, first-time buyer status, a fixed-rate mortgage, and an 8-hour homebuyer education course through a HUD-approved agency, generally completed before closing. Credit requirements vary by the participating lender rather than a single city-wide minimum.

Source: City of Houston Housing and Community Development Dept., Homebuyer Assistance Program Guidelines 8.0 (2026).

Is down payment assistance a grant or a loan you repay?

It depends on the program and the option you choose. Assistance generally comes in one of three shapes, and each works differently if you move, sell, or refinance.

A grant. Money toward your down payment or closing costs that you do not repay. True grants are the least common structure among the three programs above.
A forgivable second lien. A second loan on the home that is forgiven over time, usually if you keep living in the home for a set number of years, such as TDHCA and TSAHC's 3-year forgivable option or HAP's 5- to 8-year term. Move, sell, or refinance too soon, and part or all of it can come due.
A repayable second loan. A real second loan with no monthly payment, but a balance due later, such as at sale, refinance, or payoff of the first mortgage. TDHCA and TSAHC both offer this as an alternative to their forgivable option.

Ask which structure applies before you accept any assistance; it changes what happens if your plans change. See our down payment assistance overview for the VA and USDA 0% down options too.

Can you combine down payment assistance with FHA, VA, or conventional loans?

Often, yes. TDHCA, TSAHC, and HAP are commonly paired with FHA loans, and many are compatible with conventional loans. VA and USDA loans already allow 0% down, so assistance there more often targets closing costs.

Pairing down payment assistance by loan type
Loan type	Commonly paired with DPA?	Notes
FHA	Often	3.5% down requirement is a common fit for TDHCA, TSAHC, and HAP; see our FHA overview
Conventional	Often	Down payments as low as 3% on some programs can pair with assistance for the rest
VA	Sometimes	Already allows 0% down for eligible buyers; assistance more often covers closing costs
USDA	Sometimes	Already allows 0% down in eligible rural and suburban areas

Whether a specific pairing works depends on the lender, the program's current rules, and your full financial file. See our conventional loan overview for how down payment tiers compare.

What credit score, income, and education requirements apply?

Most Houston and Texas down payment assistance programs look for a credit score around 620, a household income at or below a program-set limit tied to Area Median Income, and a homebuyer education course.

Purchase-price limits can also apply, and first-time buyer status is commonly required for TDHCA My First Texas Home and for HAP, generally defined as not owning a home in the prior 3 years. My Choice Texas Home and some TSAHC options can be open to repeat buyers. Every figure here is set and updated by the program's own agency, not by Warens Financial Group, so confirm any number you see on a third-party site directly with the agency before relying on it.

How do you apply for down payment assistance in Houston?

You generally apply through a participating lender at the same time you apply for your mortgage, not directly with TDHCA, TSAHC, or the City of Houston.

A typical path: talk with a licensed loan officer about your income, credit, and target home; complete the required homebuyer education course; and let the lender check your file against each program's current income and purchase-price limits. Warens Financial Group is a Houston mortgage broker, so we can check your file against several programs in one conversation, en inglés o en español. Try our payment calculator to explore your own assumptions first.

Buying in Houston: a quick reality check

Houston Association of Realtors monthly reporting put the median home sale price in the Houston area at roughly the $330,000 to $350,000 range for several months in the first half of 2026. TDHCA and TSAHC figure their 5% assistance off your loan amount, not your purchase price, so on a $300,000 loan that is roughly $15,000, before closing costs. Program limits and your specific loan amount determine the real number for your purchase.

Down payment assistance can close a real gap, but it is one part of a larger picture that includes your credit, income, debts, and the home itself. A licensed mortgage broker can review the whole file with you. See our credit score guide for how your score affects loan options, or start at empieza en español.

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Warens Financial Group is a Houston-based, bilingual (English/Spanish) mortgage brokerage licensed in Texas, Florida, and Indiana, offering FHA, VA, conventional, jumbo, and Non-QM, investor, and DSCR loan programs. Our team can review your credit, budget, and goals and explain the programs you may be eligible for, en inglés o en español. Pre-qualification is free, no-obligation, and not a commitment to lend.

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Disclaimer: This article is for general educational purposes only and is not financial, legal, or tax advice, a commitment to lend, or an offer of credit. Down payment assistance, grant, and forgivable-loan programs are run by outside agencies (TDHCA, TSAHC, and the City of Houston), not by Warens Financial Group, and have their own eligibility rules that can change or end without notice. Assistance amounts, income limits, and credit minimums cited reflect third-party sources as of the dates noted and do not guarantee approval or a specific assistance amount. Verify current program details with the relevant agency and a licensed mortgage professional. Warens Financial Group, NMLS #2532048. Franklin Warens, Mortgage Broker, NMLS #1249423. Equal Housing Opportunity.

Down payment assistance programs Houston buyers can use.