Houston Homebuyer Assistance Program

The City of Houston administers the Houston Homebuyer Assistance Program to help first-time homebuyers with low-to-moderate incomes purchase homes. The program offers up to $50,000 in down payment assistance to qualified buyers.

Eligibility requirements

To qualify for the Houston Homebuyer Assistance Program, you must meet the following eligibility requirements:

1. You must be a first-time homebuyer, meaning you haven’t owned a home within the past three years.
2. The property must be within the city limits of Houston.
3. Your income needs to be at or below 80% of the area median income. 
4. Your mortgage payments after closing must be 33% or less of your monthly income. Your total debts, including your mortgage, must be 45% or less of your monthly income.

*For all DPA programs, income limits and assistance amounts are regularly reviewed and updated. These amounts were correct at publication but may change with time.

Type of loan

The Houston Homebuyer Assistance Program offers a forgivable loan to help you make a larger down payment. The loan is forgivable in that if you stay in the house for five years and don’t refinance, sell, or rent it out during that time, you won’t have to pay back the money. You also must consistently make your mortgage payments on time during this period. 

Amount of down payment assistance

The Houston Homebuyer Assistance Program provides up to $50,000 in down payment assistance. This is one of the highest down payment assistance amounts in Texas, if not the nation. It can easily help you make a 5%, 10%, or even 20% down payment on your home, which can notably reduce your monthly payments and improve your long-term finances.

Minimum borrower contribution

To participate in this program, you must contribute $350 of your own money toward your home purchase. Although it may require a bit of saving, some assistance programs require a borrower contribution of as much as $1,000, so this program has a comparatively light requirement.

Also, your $350 contribution can be added to your down payment, which essentially means you’ll invest $350 toward your home purchase and get as much as $50,000 in return. 

Purchase price limits

There is no purchase price limit for the Houston Homebuyer Assistance Program. However, your mortgage payment must be 33% or less of your monthly income, which essentially acts as a cap on the price of the home you purchase.

Income limits

The income limit for this program is 80% of area median income(AMI). The current AMI in Houston is between $52,200 and $98,450, depending on the size of your household.

Income limits are frequently reviewed and updated. Use our free down payment assistance finder to find out if you qualify based on your income.

How to qualify for the Houston Homebuyer Assistance Program

You must meet the eligibility requirements outlined in this article to qualify for the Houston Homebuyer Assistance Program. Use our free down payment assistance finder to verify your eligibility.

How to apply for the Houston Homebuyer Assistance Program

To apply for the Houston Homebuyer Assistance Program, you must first contact an approved and participating mortgage lender, who will help you through the application process. Use our free down payment assistance finder to find a lender who can help you through the steps of applying for down payment assistance.