Blog > First-Time Homebuyer Programs in Houston (2026): Down Payment Help That's Really Available
First-Time Homebuyer Programs in Houston (2026): Down Payment Help That's Really Available
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The short answer
- You may need much less than 20% down. FHA loans need 3.5%, some conventional loans 3%, and VA and USDA loans can need nothing down.
- Texas programs from TSAHC and TDHCA offer down payment help of up to 5% of the loan, and you don't always have to be a first-time buyer.
- The City of Houston and other local agencies offer larger forgivable assistance for income-eligible buyers, but funding opens and closes, so check the current status.
- Sellers can also cover part of your closing costs, which is common in today's market.
Most first-time buyers I meet assume they need 20% down. On a $325,000 home, that's $65,000, and it keeps a lot of would-be buyers on the sidelines for years longer than necessary. The truth is that most first-time buyers in Houston put down far less, and many get help with the down payment or closing costs.
Here's what's available in Houston right now and how to use it without slowing down your purchase.
Low down payment loan options
| Loan type | Minimum down payment | Good to know |
|---|---|---|
| FHA | 3.5% | Flexible on credit (often 580 or higher). Mortgage insurance usually stays for the life of the loan with less than 10% down. |
| Conventional (first-time buyer and income-based programs) | 3% | Private mortgage insurance can be removed once you reach enough equity. |
| VA | 0% | For eligible veterans and service members. No monthly mortgage insurance. |
| USDA | 0% | Only in eligible rural areas, which include some outer edges of the Houston region. Income limits apply. |
On a $325,000 home, 3.5% down is about $11,400. Closing costs are extra, typically 2% to 4% of the price, and that's where assistance and seller credits help most.
Statewide down payment assistance
TSAHC: Home Sweet Texas and Homes for Texas Heroes
The Texas State Affordable Housing Corporation offers fixed-rate loans with down payment and closing cost help of up to 5% of the loan amount, with credit scores as low as 620. Income limits vary by county.
- Home Sweet Texas is for low- to moderate-income buyers in any profession.
- Homes for Texas Heroes is for teachers and other educators, police, firefighters, EMS, corrections officers and veterans.
- TSAHC also offers Mortgage Credit Certificates, which turn part of your mortgage interest into a federal tax credit each year. They're free for Texas Heroes.
TDHCA: My First Texas Home and My Choice Texas Home
The Texas Department of Housing and Community Affairs offers My First Texas Home for first-time buyers (and some veterans and targeted areas) and My Choice Texas Home for buyers who have owned before. Both pair a 30-year fixed loan with down payment assistance, typically as a deferred second loan, and TDHCA also offers Mortgage Credit Certificates for eligible first-time buyers.
Local Houston-area programs
- City of Houston Homebuyer Assistance Program (HAP). Offers forgivable assistance to income-eligible buyers (generally at or below 80% of the area median income) purchasing inside Houston city limits, with a homebuyer education requirement. Funding and amounts change, so check the program's current status before you shop. The city holds free quarterly workshops, and its next applicant workshop is scheduled for November 11, 2026.
- Harris County down payment assistance. The county runs its own program for income-eligible buyers in parts of the county, with its own maximums and eligible areas.
- Southeast Texas Housing Finance Corporation (SETH) and similar regional programs offer down payment help as a percentage of the loan, often with higher income limits.
Fort Bend, Montgomery, Brazoria and Galveston counties and some cities have their own programs too. Your lender will know which ones are funded this month.
How to use assistance without losing the house
- Start with a lender who does these programs every week. Not every lender offers them, and the paperwork is specific. I'll introduce you to lenders who close them regularly.
- Take the homebuyer class early. Many programs require an approved education course. Do it before you find the house.
- Know the strings. Assistance may be a grant, a forgivable loan or a deferred loan. Some must be repaid if you sell or refinance within a set number of years, and rates on assisted loans can run a bit higher.
- Build in time. Some programs need extra approval steps. We write realistic closing dates so your offer is still strong.
- Ask the seller for help too. In today's market, sellers often cover part of a buyer's closing costs. Combined with down payment assistance, that can bring your cash at closing way down. My guide to seller credits and rate buydowns explains the limits.
Other ways first-time buyers make it work
- Gift funds from family can cover a down payment on most loan types, with a signed gift letter.
- Builder incentives on new homes can include closing cost help and rate buydowns. See our new construction page.
- Townhomes and condos can be a lower-cost way into neighborhoods close to work, with today's softer townhome prices.
First-time buyer questions
How much do I need to put down on a house in Houston?
Many buyers put down 3% to 3.5% with conventional or FHA loans, and eligible veterans can put down nothing with a VA loan. On a $325,000 home, 3.5% down is about $11,400, plus closing costs.
Is there down payment assistance in Houston?
Yes. TSAHC and TDHCA offer statewide help of up to 5% of the loan amount for eligible buyers, and the City of Houston, Harris County and regional agencies offer local programs for income-eligible buyers when funded.
Do I have to be a first-time buyer to get down payment assistance in Texas?
Not always. TSAHC's programs and TDHCA's My Choice Texas Home don't require first-time buyer status, though Mortgage Credit Certificates and some local programs do.
What credit score do I need to buy a house in Texas?
FHA loans often allow scores around 580, and TSAHC's assistance programs accept scores as low as 620. Higher scores usually get better rates.
Can the seller pay my closing costs?
Yes, within your loan's limits, typically 3% to 6% of the price depending on the loan type and down payment. In today's Houston market, seller help with closing costs is common.
Thinking about buying your first home? We'll connect you with a lender who handles assistance programs and help you find homes that qualify. Call or text (832) 777-3904 or send me a note.
Sources
- Texas State Affordable Housing Corporation: homebuyer programs
- Texas Department of Housing and Community Affairs: Texas Homebuyer Program
- City of Houston Housing and Community Development
- HUD: buying a home and approved housing counselors
Program terms, funding and income limits change often. Confirm details with the program or your lender. This isn't financial advice.
