Through the City of Houston’s Homebuyer Assistance Program, eligible first-time buyers can receive up to $50,000 in down payment and closing cost help.
This no-interest, forgivable loan makes it possible to own a home in Houston with less out of pocket.
Verify Your Houston Down Payment Assistance Eligibility
The Houston Homebuyer Down-Payment Assistance Program helps first-time buyers cover the upfront costs of purchasing a home within Houston city limits.
Eligible households can receive up to $50,000 in assistance toward down payment and closing costs.
This program is designed to make homeownership more accessible and affordable for Houstonians who might otherwise be priced out of the market.
The Houston Homebuyer Assistance Program provides up to $50,000 to cover your down payment and closing costs.
The funds are offered as a 0% interest loan that requires no monthly payments.
Instead, the loan is forgiven after five years of occupancy, giving buyers long-term stability without added debt.
This assistance is applied directly at closing, reducing the amount of cash needed upfront and making homeownership more attainable.
By lowering one of the biggest financial barriers, the program helps turn renters into homeowners faster.
The City of Houston’s down payment assistance offers powerful advantages that make owning a home more achievable:
Up to $50,000 in down payment and closing cost help.
0% interest loan with no monthly payments.
Loan is forgiven after five years of living in the home.
Assistance applied directly at closing to reduce out-of-pocket costs.
Makes homeownership possible sooner and with less savings required.
To receive assistance, applicants must meet the following guidelines:
Be a U.S. citizen or permanent resident (including co-applicant and spouse).
Be a first-time homebuyer (or not have owned a home in the last 3 years).
Have a household income at or below 80% of the Area Median Income (AMI).
Purchase a home within Houston city limits that pays city property taxes.
Agree to live in the home for at least five years to receive full loan forgiveness.
To qualify for the City of Houston’s Homebuyer Assistance Program, your household income must be at or below 80% of the Area Median Income (AMI).
The chart below shows the maximum income allowed based on household size:
1-person household: $56,650
2-person household: $64,750
3-person household: $72,850
4-person household: $80,900
5-person household: $87,400
6-person household: $93,850
7-person household: $100,350
8-person household: $106,800
Effective June 1, 2025. Income limits are updated annually by HUD.
Follow these steps to secure your City of Houston DPA:
Verify your eligibility online (free) today. Confirm you’re a first-time buyer, within income limits, and purchasing in Houston.
Obtain a home loan through a lender. Get pre-approved so your file can move quickly.
Complete homebuyer education. Earn your certificate from a HUD-approved agency.
Start your application. Complete your application and get an initial determination.
Choose a qualifying home. Put a property under contract that pays taxes to the City of Houston.
Pass reviews. The City completes environmental review, inspection, and underwriting.
Sign program disclosures. Review and sign the Terms & Conditions after you receive your Commitment Letter.
Close on your home. The City wires funds to the title company; your assistance is applied at closing.
Typical timeline - about six weeks after you submit a complete application (external factors can extend this).
Here are answers to the most common questions about how Houston’s down payment assistance works:
Eligible buyers may receive up to $50,000 to cover down payment and closing costs.
The City provides a 0% interest, forgivable loan. If you live in the home for five years, the loan is completely forgiven.
If you sell or move out before five years, you’ll repay a portion of the loan based on how much time remains in the five-year period.
Once a complete application is submitted, the process typically takes about six weeks, though external delays may extend the timeline.
Yes, as long as the home is within Houston city limits and pays property taxes to the City of Houston.
Funds can be applied to the down payment, closing costs, prepaid expenses (insurance, taxes, interest), or to reduce your mortgage principal or interest rate.
No fees are paid to the City. However, you must contribute at least $350 toward your purchase (inspection, appraisal, or similar costs).
No. Credit score is not a determining factor for the City’s program. Your lender will review credit as part of the mortgage process.
No maximum home price is set by the City. The main requirement is that your debt-to-income ratios remain within program guidelines.
All household income must be disclosed, but only the loan applicant’s credit is reviewed for underwriting.
We’re here to make ownership possible, not overwhelming.
Proven Experience: Thousands of Houstonians have become homeowners through this program.
Clear Guidance: Step-by-step process with dedicated resources for buyers, lenders, and realtors.
Meaningful Savings: Up to $50,000 toward your purchase with no interest and no monthly payments.
Long-Term Stability: Assistance is forgivable after five years, helping you build equity and security.
