Saving for a down payment and closing costs in Houston is tough enough, and finding out that the city's flagship assistance program has run out of money makes it even more frustrating for a first time home buyer in Houston.
This guide covers the current status of the Houston Homebuyer Assistance Program (HAP), how the updated $75,000 guidelines work for when it reopens, and which local and statewide down payment assistance programs are still open in the Houston area right now.
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You will walk away knowing the exact 2026 Houston income limits, how the 5-year and 8-year forgiveness tiers work, and how to compare active alternatives so you do not have to put your home search on hold.
2026 Status Update: City of Houston HAP Is Currently Paused
Before you spend hours gathering paperwork, here is the most important fact to know: as of October 2026, the City of Houston Homebuyer Assistance Program (HAP) is paused because funds are exhausted.
According to the City of Houston Housing and Community Development Department (HCDD), the city is no longer accepting or processing additional HAP applications at this time. HCDD has not announced a reopening date.
If you were already in the pipeline or planning to apply, keep these official rules in mind:
- No extensions on pre-approvals: Existing HAP pre-approval letters will not be extended while the program is paused. When the program is active, pre-approval letters are valid for 3 months.
- Reapplication required: Prospective buyers must reapply once funding is replenished, and applications will be taken on a first-come, first-served basis.
- Fifth Ward / Kashmere Gardens suspension: Even when funds are available, HAP assistance is suspended for properties inside the Fifth Ward / Kashmere Gardens UPRR (EPA) sampling zone until the EPA investigation concludes.
- Workshops are still running: HCDD continues to hold educational sessions, including an Applicant Workshop scheduled for November 10, 2026, at 1:00 PM, a Realtor and Lender Workshop on November 18, 2026, at 1:00 PM, and virtual office hours on Wednesdays from 1:00 PM to 4:00 PM.
If you plan to buy a home in the next few months, you do not have to wait on the city. Statewide programs like the My First Texas Home Program, the Home Sweet Texas Home Loan Program, and Homes for Texas Heroes are available across Houston and Harris County through participating lenders (assistance is offered while funding lasts), and we cover their 2026 numbers below.
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How the City of Houston HAP Works (Guidelines v8.0)
The rules below describe how HAP works when it is funded; they do not mean the program is taking applications now. On June 23, 2026, Houston City Council adopted Ordinance 2026-548, putting HAP Guidelines v8.0 into effect and raising the maximum assistance cap from $50,000 to $75,000.
Up to $75,000 Based on Financial Need
The HAP Loan provides up to $75,000 as a 0% interest forgivable loan with no payments, secured by a Deed of Trust (lien). Previous ceilings were $25,000 in 2016 (v4.0), $30,000 in 2018 (v5.0), and $50,000 in April 2023 (v7.0).
Not every buyer receives the full $75,000. HCDD calculates your award based on your household's financial need, and the HAP Loan may be reduced if you have gift funds available.
Approved uses for HAP funds include:
- Down payment on your first mortgage
- Reasonable closing costs
- Principal reduction on the first mortgage
- Interest-rate reduction
- Approved prepaid items, such as homeowner's insurance and property taxes
Neither Guidelines v8.0 nor the current HCDD program page lists different dollar amounts by neighborhood. The program has a single need-based cap of up to $75,000.
The 5-Year vs. 8-Year Forgiveness Tiers
If you read the City of Houston website, you might notice what looks like a contradiction: the main page mentions an eight-year residency requirement, while the FAQ mentions a five-year residency period.
HAP Guidelines v8.0 resolves this by tying the "Period of Affordability" directly to the dollar amount of your assistance:
| HAP Loan Amount | Affordability Period | Annual Forgiveness Rate |
|---|---|---|
| Up to $50,000 | 5 years | 20% per year (100% forgiven at year 5) |
| $50,000.01 to $75,000 | 8 years | 12.5% per year (100% forgiven at year 8) |
If you occupy the home for less than 1 full year, you earn 0% forgiveness.
During your 5-year or 8-year affordability period, the unforgiven pro-rata portion of the loan becomes due if a recapture event occurs. Recapture events include selling, transferring, or foreclosing on the property; ceasing to occupy the home as your principal residence; renting the home out; taking out a cash-out refinance, home equity loan, or unauthorized lien; or default. Any recapture repayment is limited to net proceeds, with no deficiency.
City of Houston HAP Eligibility Requirements (2026)
Under HAP Guidelines v8.0, applicants must meet both buyer and property standards to qualify when the program is open:
| Requirement | City of Houston HAP Rule (Guidelines v8.0) |
|---|---|
| First-Time Homebuyer | No ownership interest in a principal residence in the past 3 years. A spouse's ownership counts against the buyer, and any inherited property must be relinquished. |
| Income Limit | At or below 80% AMI for CDBG-funded assistance; up to 120% AMI for assistance funded with Tax Increment Reinvestment Zone (TIRZ) dollars (whether TIRZ slots are available is not stated on the public page). |
| Credit Score | No minimum. The HAP FAQ says the credit score is not used, and only the loan applicant's credit is reviewed in underwriting. |
| Buyer Contribution | At least $350 cash from the buyer (can include earnest money, appraisal or inspection fees, or funds paid at closing). No cash back is allowed at closing. |
| Debt-to-Income (DTI) Ratio | Front-end (housing) ratio at or below 33%; back-end (total) ratio at or below 45%. Front-end up to 38% may be allowed case by case with 12 to 24 months of documented rent history. |
| Liquid Assets | Less than $50,000 at eligibility and before closing (waivers are possible for buyers who are near retirement, retired, or disabled). |
| Gift Funds | Up to $20,000 allowed (may reduce the need-based HAP award). |
| Homebuyer Education | 8-hour course with a HUD-approved housing counseling agency, completed before applying (buyer pays any course fee). |
| First Mortgage | Fixed-rate mortgage from a participating lender with a term at least as long as the HAP affordability period. |
| Purchase Price Limit | None, though the sales price cannot exceed the appraised value. |
| Citizenship & Standing | U.S. citizen or permanent resident (verified through SAVE); current on child support (household members aged 18 to 62); no delinquent federal, state, or City debts; no registered sex offenders in the household. |
Property and Location Rules
To use City of Houston HAP, the home must be within the incorporated City of Houston, or in an area served by the City and subject to City of Houston property taxes. Location is checked with the City Limits Address Verification tool and HCDD GIS, and TIRZ-funded loans may carry additional geographic limits.
Eligible property types include:
- Single-family homes (1 unit)
- Townhouses
- Condominiums (see our guide to Texas Condo Loans for financing rules)
- Co-ops
- Manufactured homes permanently affixed to a foundation
Every property must pass an HCDD inspection (with a maximum of 3 inspections allowed) and a HUD environmental review. Homes located in a 100-year floodplain must meet Chapter 19 requirements or have an elevation certificate, and flood insurance is required.
Check Your Houston Home Purchase Eligibility
2026 Houston Income Limits by Household Size
The City of Houston uses the HUD FY2026 income limits for the Houston–The Woodlands–Sugar Land HMFA (which covers Chambers, Fort Bend, Galveston, Harris, Liberty, Montgomery, and Waller counties), where the median family income is $104,000.
Standard CDBG-funded HAP uses the 80% AMI column below. The 120% AMI column (published by HCDD effective June 1, 2026) applies only to TIRZ-funded HAP assistance and to the city's Affordable Home Development Program (AHDP). Because income limits change yearly, always confirm the current published figures with HCDD or a participating lender.
| Household Size | 50% AMI (HUD Very Low) | 80% AMI (Standard HAP / HUD Low) | 120% AMI (City of Houston TIRZ / AHDP) |
|---|---|---|---|
| 1 Person | $36,400 | $58,250 | $87,350 |
| 2 Persons | $41,600 | $66,600 | $99,850 |
| 3 Persons | $46,800 | $74,900 | $112,300 |
| 4 Persons | $52,000 | $83,200 | $124,800 |
| 5 Persons | $56,200 | $89,900 | $134,800 |
| 6 Persons | $60,350 | $96,550 | $144,750 |
| 7 Persons | $64,500 | $103,200 | $154,750 |
| 8 Persons | $68,650 | $109,850 | $164,750 |
For a broader look at how local caps compare with statewide bond and non-bond limits, see our guide to Texas Homebuyer Income & Purchase Price Limits.
How to Apply for City of Houston HAP (When It Reopens)
When HCDD replenishes funding and reopens intake, the application process follows seven steps:
- Get a home loan from a lender (the first mortgage must be a fixed-rate loan from a participating lender).
- Complete your 8-hour HUD-approved homebuyer education course before submitting a HAP application.
- Call HCDD at 832-394-6200 to apply once intake is open.
- Find an eligible home within the 90-day shopping window that is subject to City of Houston property taxes.
- Complete the property reviews, including the HUD environmental review, HCDD inspection, and program underwriting.
- Sign your HAP disclosure documents.
- Close on your home.
According to HCDD, processing takes about 6 weeks from the time a complete application package is submitted.
Other Houston & Harris County Local Programs in 2026
Because the main City of Houston HAP is paused, many buyers look to other city, county, and nonprofit programs around Greater Houston. Here is where each local option stands as of October 2026.
1. Houston Affordable Home Development Program (AHDP)
Run by the HCD Single-Family Division and funded by a local TIRZ bond rather than federal funds, AHDP works differently from HAP. The City makes a forgivable loan to developers, who reduce the sales prices of affordable new homes in listed developments.
- Buyer benefit: A reduced sales price plus a City second lien that is forgiven over a 5-year affordability period, designed so the buyer spends no more than 30% of gross income on mortgage plus utilities. Published subsidy estimates range from $75,000 to $100,000 per home in high-to-mid opportunity neighborhoods and $25,000 to $50,000 in low-to-moderate income neighborhoods (subject to change).
- Eligibility: Household income at or below 120% AMI, U.S. citizen or permanent resident, lender pre-approval dated within 120 days, an 8-hour HUD-approved education certificate, and a home taxed by the City of Houston.
- No stacking with HAP: AHDP cannot be combined with other City assistance such as HAP. The Fifth Ward / Kashmere Gardens EPA suspension also applies.
- 2026 Status: Developer funding is exhausted and no new development proposals are being accepted, but homebuyer intake continues at existing developments. Communities listed as accepting applications include New Homes for OST/South Union (Agape Homes CDC, near 6412 Calhoun Rd), Fairwoods at Furman (Five Woods Realty, 13520 Furman Rd, listed as starting in the upper $200,000s), OST–South Union on MLK (Mayberry Homes / Midtown Redevelopment Authority; the page's wording for this one is ambiguous, so confirm with HCD), and Robins Landing in Northeast Houston (Houston Habitat for Humanity). Additional communities in Greater Third Ward, South Park, and Garver Heights & Zuri Gardens are under development, while Northside (Cityside Homes) is sold out. To apply, buyers secure a loan, select a home in a listed development, and have the developer request an AHDP ID from HCD.
2. Harris County Down Payment Assistance Program (DAP)
If you are looking for Harris County down payment assistance outside the city limits, note that the county's general program reached capacity and is currently restricted to disaster-impacted households.
Under the August 2026 Harris County CDBG-DR Addendum, applicants must show impact from Hurricane Beryl and/or the May 2024 Houston Derecho, or have lived in HUD-identified Most Impacted and Distressed (MID) areas, supported by a residency attestation (lease, utility bill, or proof of displacement) and a subrogation agreement.
For buyers who meet the disaster criteria, here is how Harris County DAP works:
- Maximum assistance: Up to $40,000 as a 0% interest forgivable ("silent") second lien. The base award for down payment, prepaids, and closing costs is $27,100, with additional incentives inside the $40,000 cap (up to $1,800 for a 3-year home warranty, $3,000 for 1 year of flood insurance, up to $5,700 for 1 year of homeowner's/wind-hail insurance, up to $500 for an elevation certificate, up to $1,500 for HOA dues, and $125 to $400 for a title policy).
- Forgiveness period: 5 years for awards up to $25,000, and 10 years for awards from $25,000 to $40,000.
- Buyer requirements: First-time buyer (no ownership in 3 years), income at or below 80% AMI, minimum 580 credit score, 8-hour HUD-approved education plus budget counseling, $1,000 minimum buyer contribution, liquid assets at or below $30,000, front-end ratio at or below 39%, back-end DTI at or below 42%, U.S. citizen or eligible non-citizen, and current on child support.
- Property & price caps: 1-unit homes in unincorporated Harris County, outside Houston city limits unless an interlocal agreement applies (the county's documents are not fully consistent on location, so confirm with the county), located in disaster-impacted or MID areas and outside the 100-year floodplain, floodway, or county buyout areas. Maximum purchase price is $285,000 for existing homes and $296,000 for new construction.
3. Houston Community Land Trust (HCLT)
For buyers with household income below 80% AMI, the Houston Community Land Trust offers a shared-equity model where you purchase the house and lease the underlying land from HCLT under a 99-year ground lease.
- How you buy: Through the Homebuyer Choice Program (where you pick a home in a neighborhood of your choice and HCLT places the land in trust to make it affordable), HCLT resales, or the New Home Development Program.
- Requirements: Income below 80% AMI, an 8-hour HUD-certified education course plus a CLT orientation, a 30-year fixed mortgage from an approved lender, and at least $1,000 of your own funds in reserve at closing.
- Ongoing costs & resale rule: HCLT charges a $50/month ground lease fee and a $50/month maintenance reserve fee, and property taxes are assessed on the lower affordable resale value. When you sell, the resale price is capped by a formula equal to the initial price plus 1.25% of the initial price per year.
4. Surrounding Houston-Area Programs (Montgomery County, Baytown, Galveston, Fort Bend)
If you are shopping in the suburbs around Houston, several neighboring jurisdictions have their own programs:
| Jurisdiction / Administrator | Assistance Amount | Key Eligibility & Location Rules |
|---|---|---|
| Montgomery County HOME DPA (Easter Seals Greater Houston, June 2026–June 2027 flyer) | Up to $12,600 direct subsidy for down payment, closing costs, and prepaids | Income under 80% AMI; first-time buyer (3 yrs); $500 buyer investment; max 43% DTI; 30-yr fixed FHA, VA, USDA, or conventional loan; home in Montgomery County outside Conroe city limits; price cap $285,000 existing / $291,000 new (loan/grant structure not stated on flyer—confirm with administrator). |
| City of Baytown First-Time Homebuyer Assistance | Up to 5% of the sales price for down payment and/or closing costs | Income at or below 80% AMI; buyer contributes 2% of the sales price; age 18+; approved homebuyer education (current open/closed status and forgiveness terms should be confirmed with the City of Baytown). |
| City of Galveston Homebuyer Assistance Program | Up to $14,500 in HOME funds for down payment and closing costs | First-time buyer; 8-hour education; inside Galveston city limits; must pass HUD HQS inspection (city page still displays 2025 guidelines—confirm 2026 status with the City of Galveston). |
| Harris County HFC Gift (paired with TDHCA loans) | $1,000 gift (no repayment) | Stacks with TDHCA My First Texas Home or no-DPA first lien in Harris County excluding Houston, Baytown, Deer Park, Friendswood, La Porte, League City, Missouri City, Pasadena, and Pearland, while funds last. |
In Fort Bend County, no active county homebuyer assistance intake page was found as of October 2026—buyers there should confirm directly with the county or use one of the statewide programs below.
Check Your Houston Home Purchase Eligibility
Open Right Now: Statewide Programs Houston Buyers Can Use Today
You do not need to wait for the City of Houston to replenish HAP funds to buy a home with down payment assistance. Two statewide housing agencies—TDHCA (Texas Department of Housing and Community Affairs) and TSAHC (Texas State Affordable Housing Corporation)—offer programs through participating lenders across Houston, Harris County, Fort Bend County, and Montgomery County. TDHCA offers assistance while funding lasts, and TSAHC had no funding pause posted as of October 2026.
Their published income limits in the Houston area are higher than the city and county limits above, and they are not limited to the City of Houston. You can explore how they fit into the broader landscape in our guide to 58 Texas First-Time Home Buyer Grants & Programs (2026).
1. TDHCA: My First Texas Home & My Choice Texas Home
TDHCA offers two primary 30-year fixed-rate mortgage programs through participating lenders, both providing 2% to 5% of the total loan amount in down payment and closing cost assistance (while funding lasts):
- My First Texas Home Program (MFTH): For first-time homebuyers (no primary-residence ownership in the past 3 years), qualified veterans, or buyers purchasing in a Qualified Targeted Census Tract. Available with FHA Loans in Texas, VA Loans in Texas, and USDA Loans in Texas (2026) (no conventional loans).
- My Choice Texas Home Program (MCTH): Open to both first-time and repeat homebuyers using FHA, VA, USDA, or HFA conventional loans, with no purchase price limit.
TDHCA's down payment assistance is structured as a 0% interest, no-monthly-payment second lien, offered either as a 30-year deferred repayable second lien (due on sale, refinance, transfer, or payoff) or a 3-year deferred forgivable second lien (fully forgiven after 36 months of occupancy if current on the first mortgage). Which DPA tiers and structures are available changes daily on TDHCA's Rate Notice—for example, on the October 26, 2026 Rate Notice, standalone MFTH bond loans offered the 30-year deferred lien while the 3-year forgivable lien appeared under the MFTH + Mortgage Credit Certificate (MCC) Combo and under MCTH.
First-time buyers and veterans can also pair MFTH with the Texas Mortgage Credit Certificate (TXMCC), which provides a federal income tax credit currently equal to 15% of the annual mortgage interest paid (TDHCA posts the current credit rate on its daily Rate Notice) every year you live in the home (limited to your tax liability, with a 3-year carryforward).
2. TSAHC: Home Sweet Texas & Homes for Texas Heroes
TSAHC runs two statewide programs that are open to both first-time and repeat buyers (Bond DPA and the MCC require first-time buyer status, with waivers in Targeted Areas and for qualified veterans):
- Home Sweet Texas Home Loan Program: Open to all low- and moderate-income Texas buyers with no profession requirement.
- Homes for Texas Heroes: Offers higher Non-Bond income limits and a free MCC (waiving the $400 issuance fee when paired with Non-Bond DPA) for full-time Texas public K-12 classroom teachers, teacher aides, school librarians, school counselors, school nurses, peace officers, firefighters, EMS personnel, corrections and juvenile corrections officers, county jailers, public security officers, nursing and allied health faculty, and veterans/active-duty military. (Note: hospital RNs and licensed social workers are not on the eligible list because the 2025 bills to add them, SB 536 and SB 845, did not pass.)
With TSAHC Non-Bond assistance, buyers receive 2%, 3%, 4%, or 5% of the total loan amount as either an outright Grant (available on FHA, VA, and USDA loans; does not need to be repaid after six months from first-lien closing) or a 3-year Deferred Forgivable Second Lien (available on FHA, VA, USDA, and HFA conventional loans; 0% interest, forgiven in full on the third anniversary). TSAHC also offers a 15% Mortgage Credit Certificate (MCC) with no $2,000 annual cap when paired with Non-Bond DPA or No DPA.
2026 Houston-Area Comparison: City of Houston HAP vs. TDHCA vs. TSAHC
Here is how the current published limits for Harris, Fort Bend, and Montgomery counties stack up against the paused City of Houston HAP. TDHCA limits took effect July 13, 2026; TSAHC figures come from its county income limits tool, which states no effective date. Limits change yearly, so confirm them with a participating lender.
| Feature | City of Houston HAP (Paused) | TDHCA My First Texas Home | TDHCA My Choice Texas Home | TSAHC Home Sweet Texas / Heroes (Non-Bond) |
|---|---|---|---|---|
| Current 2026 Status | Paused (funds exhausted) | Available (funding permitting; see daily Rate Notice) | Available (funding permitting; see daily Rate Notice) | Available (no funding pause posted) |
| Assistance Amount | Up to $75,000 (need-based) | 2% to 5% of loan amount | 2% to 5% of loan amount | 2% to 5% of loan amount |
| Assistance Structure | 0% forgivable loan; forgiven over 5 yrs (up to $50k) or 8 yrs ($50k–$75k) | 0% second lien; 30-yr deferred repayable or 3-yr forgivable (see daily sheet) | 0% second lien; 30-yr deferred repayable or 3-yr forgivable | Grant (gov't loans) or 3-yr forgivable second lien (all loans) |
| First-Time Buyer Required? | Yes (past 3 years) | Yes (except veterans & targeted tracts) | No | No (unless adding MCC or using Bond DPA) |
| Minimum Credit Score | None set by City (lender rules apply) | 620 | 620 | 620 (FHA/VA/USDA); 640 (HFA conventional) |
| Harris / Fort Bend / Montgomery Income Limit | $58,250 (1 person) to $109,850 (8 persons) at 80% AMI | $104,000 (1–2 persons) / $119,600 (3+ persons); up to $145,600 in targeted tracts | $84,080 (Conv. ≤80% AMI); $178,670 (Conv. >80% AMI); $176,800 (FHA/VA/USDA) | $84,080 (Conv. ≤80% AMI); $156,000 (HST Gov't/Conv. >80%); $176,800 (Heroes Gov't/Conv. >80%) |
| Houston-Area Purchase Price Limit | None (cannot exceed appraisal) | $566,354 non-targeted / $692,211 targeted (1-unit) | No purchase price limit | No purchase price limit (Non-Bond without MCC); $566,355 with MCC |
| Eligible Loan Types | Fixed-rate first mortgage | FHA, VA, USDA | FHA, VA, USDA, HFA Conventional | FHA, VA, USDA, HFA Conventional |
Rates for TDHCA and TSAHC loans are set daily by each program, and a participating lender can quote today's rate and compare your monthly payment across each tier. To see how these pair with standard first mortgages, review our Texas FHA Loan Requirements (2026) and Requirements to Buy a House in Texas.
Bottom Line: Next Steps for Houston Homebuyers
While the City of Houston Homebuyer Assistance Program (HAP) is paused in 2026 with no announced reopening date, you still have other paths to explore for buying a home in Houston and Harris County.
If you want to buy now, statewide programs through TDHCA and TSAHC offer 2% to 5% of the loan amount in down payment assistance while funding lasts, with income limits in Harris, Fort Bend, and Montgomery counties that range up to $178,670 depending on the program and loan type, and they are not limited to the Houston city limits. Buyers apply for these programs through a participating lender, and our team can help you check your eligibility, compare your Texas Home Loan Options, and get connected with the right program for your budget.
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