Harris County Down Payment Assistance and First-Time Homebuyer Programs

Whether you’re planning to buy a home in the hustle and bustle of Houston or looking for something more low-key, like Pasadena, Harris County has a lot to offer first-time homebuyers. This includes a relatively affordable housing market. 

But even in an affordable market, the upfront expenses for buying a home can add up. Between the down payment and closing costs, you’re easily looking at tens of thousands of dollars. 

This is where down payment assistance for Harris County residents comes into play. 

There is a strong selection of down payment assistance and first-time homebuyer programs in Harris County to help you reduce the out of pocket expenses that come with buying a home. These programs offer up to $30,000 to help with upfront costs. 

This could absolutely help you get into a home sooner, potentially shortening your home purchase timeline from years to months. Stay tuned as we go over all the details.

Disclaimer: This article is for informational purposes only and should not be considered as legal or financial advice. Please consult an attorney, mortgage lender, or CPA for guidance on your specific situation.

Types of down payment assistance for Harris County homebuyers

The most common type of down payment assistance in Harris County is a forgivable loan, meaning you don’t have to repay the money as long as you meet certain forgiveness requirements. Sometimes these loans are called “liens,” but regardless of the name, they work in basically the same way. 

There are a few other options available to Harris County homebuyers, including a discounted mortgage loan for veterans and service members. But forgivable loans are by far the most common down payment assistance option for homebuyers in Harris County. 

Harris County forgivable first-time homebuyer loans

Harris County first-time homebuyer loans and liens deliver loaned money, but the loan can be fully forgiven if you fulfill the requirements laid out by the program. So, even though it’s called a loan, you won’t have to repay the money as long as you meet a few relatively easy benchmarks.

In most cases, these requirements for forgiveness involve living in the home for a minimum number of years (often between three and ten) before selling, refinancing, or renting it out. You must also consistently make your mortgage payments on time. 

Some loans and liens don’t get forgiven until you pay off your entire mortgage, but these are less common. 

Down payment assistance programs in Harris County

Now that you know a little more about what to expect from down payment assistance, here is the full list of programs available to Harris County residents.  

This list includes two local programs. One is a Houston down payment assistance program, while the other is for Harris County as a whole. The list also includes statewide and national down payment assistance programs that can be used throughout Harris County and beyond.

If this information feels like a lot to sort through, Stairs Financial can help. 

Stairs Financial streamlines your access to down payment assistance, making it easy for you to connect with a trusted lender and compare the loan and assistance programs you may qualify for, all in one place.

Learn more. 

Harris County Community Services Department’s Down Payment Assistance Program (DAP)

Harris County Community Services Department’s Down Payment Assistance Program (DAP) is a forgivable loan that offers first-time homebuyers in Harris County up to $23,800 in assistance funds. The money can be used to make a down payment, pay closing costs, and cover other eligible upfront expenses.

Assistance type: Forgivable loan

Sponsor: Harris County Community Services Department

Assistance amount*: $23,800 maximum

Purchase price limit*: $268,000 for newly constructed homes; $261,000 for existing homes. 

Minimum borrower contribution: $1,000

Eligibility requirements:

• First-time homebuyer
• Purchasing in Harris County
• Must have less than $15,000 in liquid assets
• Income limit*: 80% of median income for Harris County
• Credit (FICO) score of 580 or higher (for at least one applicant)

*For all DPA programs, purchase price and income limits are regularly reviewed and updated. Be sure to check the most current limits before assuming you don’t qualify. 

Houston Homebuyer Assistance Program

The Houston Homebuyer Assistance Program offers down payment assistance loans with a $50,000 maximum. These loans can be forgiven after five years, provided you don’t sell, refinance, or move out of the home within that time.

Assistance type: Forgivable loan

Sponsor: City of Houston

Assistance amount: $50,000 maximum 

Purchase price limit: None 

Minimum borrower contribution: $350

Eligibility requirements: 

• First-time homebuyer 
• Purchasing within Houston city limits
• Income limit: 80% of area median income

Statewide down payment assistance programs available in Harris County

These Texas-based down payment assistance programs are available to eligible first-time homebuyers in Harris County. 

TSAHC Home Sweet Texas HFA Loan

The Home Sweet Texas HFA Loan is a down payment assistance loan available everywhere in Texas that can be fully forgiven if you don’t sell or refinance the home for a period of three years after purchase. 

This program can also be combined with the Texas Mortgage Credit Certificate (MCC) tax credit which we describe in greater detail below.

Assistance type: Forgivable loan

Sponsor: Texas State Affordable Housing Corporation

Assistance amount: Up to 5% down payment, no fixed maximum

Purchase price limit: None

Minimum borrower contribution: None

Eligibility requirements: 

• Purchasing in Texas
• Credit (FICO) score of 620 or higher
• Income limit*: $71,280 to $97,840 depending on location of home

*For all DPA programs, income limits are regularly reviewed and updated. Be sure to check the most current limits before assuming you don’t qualify. 

TSAHC Homes for Texas Heroes HFA Loan

The Homes for Texas Heroes HFA Loan is a forgivable down payment assistance loan program available to Texas residents working in certain helping professions. The loan can be combined with the Mortgage Credit Certificate (MCC) tax credit, and it can be forgiven if you do not sell or refinance the home within three years.

Assistance type: Forgivable loan

Sponsor: Texas State Affordable Housing Corporation

Assistance amount: Up to 5% down payment, no fixed maximum

Purchase price limit: none 

Minimum borrower contribution: None 

Eligibility requirements: 

• Purchasing in Texas
• A veteran, or currently working as: a teacher, emergency medical professional, nurse, law enforcement officer, or active duty service member 
• Credit (FICO) score of 620 or higher
• Income limit: $126,140 to $163,520 depending on location of home

SETH 5 Star Texas Advantage Forgivable Lien

The 5 Star Texas Advantage Forgivable Lien provides down payment assistance in the form of a community second lien which is forgiven after three years, provided you do not sell or refinance the home in that time. 

Assistance type: Forgivable loan

Sponsor: Southeast Texas Housing Finance Corporation

Assistance amount: Up to 5% down payment, no fixed maximum 

Purchase price limit for FHA loans*:  $472,030 to $571,550 (depending on location)

Purchase price limit for all other loan types: $492,500 

Minimum borrower contribution: None 

Eligibility requirements: 

• Purchasing anywhere in Texas except Travis County, El Paso, McKinney, and Grand Prairie
• Credit (FICO) score of 640 or higher 
• Income limit for USDA-backed loans: $56,880 to $170,800 depending on location 
• Income limit for all other loan types: $78,820 to $171,220 depending on location

*For all DPA programs, purchase price and income limits are regularly reviewed and updated. Be sure to check the most current limits before assuming you don’t qualify. 

TDHCA My First Texas Home Down Payment Assistance

My First Texas Home Forgivable Down Payment Assistance is a down payment assistance program that offers funding to first-time homebuyers in the form of a second lien that can be structured either as a three-year forgivable lien, or as a 30-year deferred repayment lien.

Assistance type: Forgivable loan

Sponsor: Texas Department of Housing and Community Affairs Homebuyer Program

Assistance amount: Up to 5% down payment, no fixed maximum

Purchase price limit: none

Minimum borrower contribution: None 

Eligibility requirements: 

• First-time homebuyer purchasing in Texas
• Credit (FICO) score of 620 or higher 
• Income limit: $90,100 to $163,520 based on location of home 

TDHCA My Choice Texas Home Down Payment Assistance

My Choice Texas Home Down Payment Assistance is a program with no first-time homebuyer requirement. Funds are delivered as second liens which can be structured either as a three-year forgivable lien, or as a 30-year deferred repayment lien.

Assistance type: Forgivable loan

Sponsor: Texas Department of Housing and Community Affairs Homebuyer Program

Assistance amount: Up to 5% down payment, no fixed maximum

Purchase price limit: $481,176 to $712,097 depending on location of home 

Minimum borrower contribution: None 

Eligibility requirements: 

• Purchasing in Texas
• Credit (FICO) score of 620 or higher
• Income limit: $90,100 to $163,520 depending on location of home 

Veterans Housing Assistance Program

The Veterans Housing Assistance Program offers discounted mortgage loans for veterans and active duty service members to purchase a home in Texas. The funding can be structured as a 15, 20, 25, or 30 year loan. It requires minimal or no down payment and offers interest rates which are typically lower than the market rate. 

Assistance type: Discounted mortgage loan

Sponsor: Veterans Land Board

Assistance amount: up to $726,200 loan 

Minimum borrower contribution: none 

Eligibility requirements: 

• Purchasing in Texas 
• Veteran or active duty service member
• Income limit: none

National down payment assistance programs and grants you can use in Harris County

Whether you’re purchasing a home in Harris County, or elsewhere in the US, you might be eligible for down payment assistance sponsored by the National Homebuyer Fund. We’ve included details about the program below. 

NHF Down Payment Assistance Program

The NHF Down Payment Assistance Program provides a down payment assistance loan which can be forgiven if the home is your primary residence for a certain number of years. The number of years required to forgive the loan is determined at closing.

Assistance type: Forgivable loan

Sponsor: National Homebuyer Fund

Assistance amount: up to 5% down payment, no fixed maximum

Purchase price limit: Flexible, based on buyer’s income

Minimum borrower contribution: None 

Eligibility requirements: 

• Credit (FICO) score of 600 or higher
• Income limit: 115% of median income in area where home is purchased

In addition to the National Homebuyer Fund, you could potentially qualify for a lender-sponsored assistance program through one of the nation’s largest banks. These programs vary from lender to lender. Stairs Financial does not endorse any single lender-sponsored DPA program over the next.  

Harris County down payment assistance programs FAQ

Here are quick answers to the most frequently asked questions about Harris County down payment assistance programs. 

What first-time homebuyer programs are available to Harris county residents?

These are the first-time homebuyer programs available in Harris County:

• Harris County Community Services Department’s Down Payment Assistance Program (DAP)
• Houston Homebuyer Assistance Program
• Home Sweet Texas HFA Loan
• Homes for Texas Heroes HFA Loan
• 5 Star Texas Advantage Forgivable Lien
• My First Texas Home Down Payment Assistance Lien
• My Choice Texas Home Down Payment Assistance Lien
• Veterans Housing Assistance Program
• NHF Down Payment Assistance Program

Where do I find info about the Harris County Community Services Department Downpayment Assistance Program (DAP)?

The Harris County Community Services Department Downpayment Assistance Program (DAP) helps first-time homebuyers make a down payment, pay closing costs, and cover other upfront costs. The program offers a forgivable loan for up to $23,800. The Harris County Community Services Department has all the details.

Or, take advantage of the easy-to-use tools available from Stairs Financial to get comprehensive information on this program and any others for which you might qualify. 

How does down payment assistance work in Texas?

To use down payment assistance in Texas, you must apply through a qualified lender who works with the program you are interested in. Usually, you submit your DPA and mortgage loan applications at the same time. After you are approved, your down payment assistance funds are paid to you or to your lender at closing. 

What is the income limit for first-time homebuyers in Harris County?

The typical income limit for first-time homebuyers in Harris County is 80% of the county median income, adjusted for the number of people in the household, though some programs have higher or lower limits. 80% of the Harris County median income is $52,300 for a single person and $74,550 for a family of four.

These income limits are reviewed and revised often, so always check the most current limits before assuming you don’t qualify.

What are the minimum requirements for Harris County down payment assistance?

These are the most common minimum requirements for Harris County down payment assistance:

• A minimum contribution from the buyer, usually $1,000 or less.
• A credit score between 620 and 640, although some programs can support lower scores.
• Purchasing your first home or have not owned a home within a certain period of time, most often three years.

Down payment assistance programs set their own guidelines, so the minimum requirements for your specific program may be different than the ones listed above.

How do I find Harris County down payment assistance approved lenders?

If you’re using down payment assistance (DPA), finding a lender approved to work with your program is crucial. It’s also important to find a lender you trust, one who is knowledgeable and experienced at helping first-time homebuyers navigate DPA. 

Stairs Financial makes it easy to find approved lenders who work with down payment assistance programs in your area.

Stairs does the hard work for you by connecting you with an approved lender, then matching you with all of the down payment assistance for which you might qualify, so you can compare your options side-by-side and make the best choice for you and your family.

How much is a down payment for a house in Harris County (on average)?

The average home price in Harris County is $279,401 (as of 8/31/2023). Nationally, the average down payment for first-time buyers is 6% (based on data from the National Association of Realtors). Based on these numbers, the average down payment in Harris County is $15,707.

Be mindful that this is the average down payment, according to historical purchase data. This is not necessarily the optimal or recommended down payment. Most mortgage loan programs offer interest rate reductions at the 5%, 10%, and 20% down payment levels, with a 20% down payment netting you the lowest interest rate.

Therefore making the largest down payment you can afford may not be advisable. It might be better to make a 5% down payment, even if you could afford 6%. You could then use the extra money to buy down your interest rate, make repairs, or save for a rainy day.

Your lender will discuss your down payment options with you, and help you decide what makes the most sense for your situation

What is the minimum down payment on a house in Harris County?

Your loan type determines the minimum down payment on a house in Harris County. Conventional loans almost always require a 3% down payment, and FHA loans require a minimum of 3.5%. There are also zero down loan programs which require no down payment.

What is a mortgage credit certificate and does it apply to Harris County first time homebuyers?

The Mortgage Credit Certificate (MCC) is a federal tax credit available all over the United States, including Harris County. The credit reduces your federal income taxes by 20% of the total mortgage interest you paid throughout the year. 

Because you are refunded a portion of your interest when you file your taxes, this essentially reduces your effective mortgage interest rate. It is an important tool for making homeownership more affordable. 

Learn all about the down payment assistance programs you qualify for

Stairs Financial makes getting down payment assistance (DPA) simple. Stairs connects you with a DPA approved lender, matches you with all the assistance programs for which you might qualify, and delivers the information side-by-side for easy comparison, so you can choose the best program for your needs.

Learn more about your down payment assistance options.