First-Time Homebuyer
Grants in Houston, TX

1. City of Houston Homebuyer Assistance Program (HAP)

The City of Houston’s own program is often the best first stop for buyers planning to purchase within Houston city limits. It provides the largest single dollar amount of any local program and can be stacked with state assistance.

Forgivable After 5 YearsCity of Houston

• Up to $30,000 in down payment and closing cost assistance
• Available to buyers at or below 80% of Area Median Income (AMI)
• No-interest, forgivable loan — fulfilled after 5 years in the home
• Property must be within Houston city limits and pay city taxes
• Fixed-rate mortgage required (no ARMs or seller financing)
• HUD-approved homebuyer education required for all borrowers
• Contact: 832-393-0550 to apply

2. My First Texas Home (TDHCA)

The Texas Department of Housing and Community Affairs (TDHCA) offers a 30-year fixed mortgage paired with down payment assistance that works across the entire state, including all of Houston and Harris County. TDHCA assistance can be combined with the City of Houston HAP, giving qualified buyers access to two sources of help at the same time.

Statewide ProgramUp to 5% DPA

• 30-year fixed-rate mortgage at a competitive, below-market rate
• 5% of the loan amount in down payment and closing cost assistance
• On a $300,000 home, that’s up to $15,000 in assistance
• Minimum 620 credit score required
• Income limits apply (varies by household size and county)
• Must be a first-time buyer or not have owned a home in the past 3 years

3. TSAHC Home Sweet Texas

The Texas State Affordable Housing Corporation (TSAHC) runs a separate program available to a wider range of buyers, including some repeat buyers, and offers a true grant option where the assistance never needs to be repaid.

True Grant AvailableFirst-Time & Repeat Buyers

• Down payment assistance of up to 5% of the loan amount
• Can be structured as a true grant — no repayment ever required
• Or as a 3-year deferred loan, depending on income level
• Works with FHA, VA, USDA, and conventional loans
• Income limit approximately $116,000 for the Houston area (2026)
• Available to first-time AND repeat buyers in designated Targeted Areas

4. TSAHC Homes for Texas Heroes

Teachers, firefighters, police officers, nurses, and veterans get an enhanced version of the TSAHC program with a discounted mortgage rate on top of the down payment help. On a $300,000 mortgage, a 0.5% rate reduction saves roughly $90/month or over $32,000 across a 30-year loan — on top of the grant.

Eligible Professions OnlyRate Discount + 5% DPA

• Same 5% down payment assistance as Home Sweet Texas
• PLUS a below-market first mortgage rate (typically 0.25–0.5% lower)
• Eligible: teachers, firefighters, law enforcement, EMS, corrections officers, veterans, nurses
• Can be combined with a Mortgage Credit Certificate (MCC)
• 620 credit score minimum; income and purchase price limits apply

5. Texas Mortgage Credit Certificate (MCC)

The Mortgage Credit Certificate converts part of your annual mortgage interest into a dollar-for-dollar federal tax credit, reducing your IRS bill every year for as long as you own the home. Over 10 years, the MCC alone can save a Houston buyer $20,000 in federal taxes.

Federal Tax CreditStackable with DPA

• Converts 20% of annual mortgage interest into a federal tax credit
• On a $250,000 loan at 7%, that’s approximately $2,000 back at tax time every year
• Credit continues for the life of the mortgage while you live in the home
• Can be stacked with TDHCA or TSAHC down payment assistance
• Must be a first-time buyer or buying in a Targeted Area

6. Harris County Community Services DPA

If you’re buying in unincorporated Harris County (outside Houston city limits), Harris County offers its own down payment assistance for income-qualified buyers. This program fills the gap for buyers just outside Houston city limits who don’t qualify for the city HAP.

County ProgramIncome-Based

• For buyers in unincorporated Harris County — not inside Houston city limits
• Income-based assistance for low-to-moderate income households
• Works alongside TDHCA and TSAHC state programs
• Fixed-rate mortgage and HUD-approved homebuyer education required
• Contact Harris County Community Services Department for current funding availability

What is the maximum grant available to Houston first-time homebuyers?

The City of Houston HAP alone provides up to $30,000. When combined with state programs like TDHCA or TSAHC (which add up to 5% of the loan amount), total assistance for a $300,000 purchase can reach $45,000 or more. Adding a Mortgage Credit Certificate provides additional savings over time through annual tax credits.

Do I have to pay back the City of Houston HAP money?

No — as long as you live in the home for 5 years. The HAP is structured as a no-interest loan secured by a lien, but that lien is forgiven after 5 years of occupancy. If you sell or move before 5 years, a prorated portion may need to be repaid.

Can I use the City HAP and a state program at the same time?

Yes. The City of Houston HAP is designed to work alongside TDHCA and TSAHC programs. Most Houston buyers combine all three: city DPA, a state mortgage/DPA, and an MCC. Your lender will coordinate the applications and ensure they’re compatible.

What credit score do I need for Houston homebuyer programs?

Most programs require a minimum 620 credit score. The City of Houston HAP also requires that a lender approve you for a fixed-rate mortgage. If your score is below 620, focus on improving it for 3–6 months before applying — even a small increase can open up more programs.

Are these programs only for first-time buyers?

Most programs define “first-time buyer” as not having owned a home in the past 3 years — so even previous homeowners may qualify. TSAHC Home Sweet Texas is also available to repeat buyers purchasing in designated Targeted Areas, regardless of prior homeownership.

1. Check income limits — confirm you’re at or below 80% AMI for the HAP and review TDHCA/TSAHC income limits for the Houston area
2. Complete a HUD-approved homebuyer education course — required by all Houston programs and easily done online
3. Get pre-approved by a TDHCA/TSAHC-approved lender who can also process City of Houston HAP applications
4. Apply for the City of Houston HAP — call 832-393-0550 or visit houstontx.gov/housing
5. Shop for homes within Houston city limits (for HAP) at a price that fits your pre-approval
6. Close — all assistance is applied at closing, dramatically reducing your out-of-pocket costs