Harris County Down Payment Assistance: Houston HAP, County DAP, and State Options

Harris County down payment assistance starts with your address

Harris County includes many separate cities, and the largest by far is Houston. That creates two separate local systems. The City of Houston's Housing and Community Development Department (HCD) serves homes inside the city. Harris County Housing and Community Development serves unincorporated areas and some smaller cities that take part in the county's federal housing programs. A few cities, such as Baytown and Pasadena, work with other regional partners.

So before you look at any program, confirm which jurisdiction your target home is in. Houston's HAP guidelines say the home must be in the incorporated City of Houston or an area served by the city and subject to city property taxes, and they point buyers to the city's address verification map. A Houston mailing address alone does not prove that. Your Realtor, the title company, or the property tax statement can usually tell you quickly.

The City of Houston Homebuyer Assistance Program

HAP helps first-time buyers purchase a new or existing home in the city. The city's program guidelines, version 8.0, approved June 23, 2026, set these basics:

• Amount: up to $75,000, raised from $50,000. The exact amount is set by a subsidy analysis of your income, loan, and price, so not everyone gets the maximum.
• Uses: buying down the interest rate, up to half of the required down payment, a principal reduction on the first mortgage, reasonable closing costs, and prepaid items like insurance and property taxes.
• Form: a 0% deferred, forgivable loan secured by a second lien, with no monthly payments.
• Buyers: U.S. citizens or lawful permanent residents (including the co-applicant and spouse) who have not owned a home in the last three years.
• Income: at or below 80% of area median income for assistance paid with federal CDBG funds; up to 120% for assistance paid with local TIRZ funds.

The city's guidelines say the subsidy goes first toward buying the interest rate down by at least 2 to 3 points, then half the down payment, then principal reduction, then closing costs. That order is designed to lower your monthly payment, not just your cash at closing.

HAP funding status right now

When we checked the city's HAP page on November 14, 2026, it said that because available funds were exhausted, the city is no longer accepting or processing new applications. Buyers who already hold a pre-approval letter must close before it expires, with no extensions, and pre-approval letters are now valid for three months. The city says applications will be taken again on a first-come, first-served basis once funding is replenished.

The same page notes two other limits. The Harvey Homebuyer Assistance Program 2.0, which offered up to $125,000 to eligible first-time buyers affected by Hurricane Harvey, has placed applications without a pre-approval on hold. And all HCD homebuyer and home repair help is suspended for properties inside the EPA's Fifth Ward and Kashmere Gardens sampling zone while that investigation continues.

The city holds free virtual office hours every Wednesday from 1 to 4 p.m. and quarterly homebuyer trainings. Those are good ways to get ready so you can apply quickly when HAP reopens.

How HAP forgiveness works

Under the 2026 guidelines, the HAP loan is forgiven a little each year you live in the home. The length depends on the amount:

If you sell, rent the home out, move out, take a cash-out refinance or home equity loan, or otherwise default during the period, the unforgiven part comes due. The guidelines limit repayment to the net proceeds of a sale, so you would not owe more than the sale brings in. A regular refinance of the first mortgage may be allowed with the city's written approval and no cash out.

2026 income limits for the Houston area

The City of Houston publishes HUD's Houston-The Woodlands-Sugar Land limits, effective June 1, 2026. The 80% column applies to most HAP help; the 120% column applies only when local TIRZ funds are used.

These HUD limits are also the usual yardstick for Harris County's own program, which is aimed at households at or below 80% of area median income. Income counts all adult household members, not just the people on the loan.

Other HAP rules worth knowing

The 2026 guidelines include several details that surprise buyers:

• Education first: you and any co-applicant must finish an 8-hour homebuyer course with a HUD-approved counseling agency before applying.
• Lender first: you need a pre-approval from a participating lender, then you call the city to get a HAP ID number.
• Payment ratios: your housing payment may not exceed 33% of gross income, and total debts may not exceed 45%. Up to 38% on the front end may be considered with a strong rent history.
• Savings cap: liquid assets for the household may not exceed $50,000, with some waivers for retirees and people with disabilities.
• Your share: you must put in at least $350, and gift funds are capped at $20,000.
• Fixed rate only: no adjustable-rate or seller-financed loans; closing costs are generally capped at 6% of the price.
• Debts and child support: delinquent federal, state, or city debts must be resolved first, and adults 18 to 62 must be current on court-ordered child support.
• Timeline: once approved, you get a conditional reservation letter and 90 days to find and close on a home.

The city also inspects every home and runs a HUD environmental review. Properties occupied by a tenant are not eligible.

Harris County's own down payment program

For homes in unincorporated Harris County, the county's Housing and Community Development department has long run a Down Payment Assistance Program (DAP), formerly under the Community Services Department. It works as a deferred second mortgage, sometimes called a silent second, for first-time buyers at or below 80% of area median income, and it requires a HUD-approved homebuyer course.

We could not verify the current details. The county's website blocked our automated checks on November 14, 2026, and the version of its DAP page that appears in search results looks older. That page describes an affordability period of 5 years for assistance under $25,000 and 10 years for $25,000 to $40,000, price caps of $285,000 for an existing home and $296,000 for new construction, and a rule that eligible homes cannot be in a flood hazard area. Several 2026 lender and real estate summaries say the county raised its maximum to $40,000 from an older $23,800, and that the program reached capacity and is focusing on households affected by Hurricane Beryl and the 2024 derecho. Treat all of those figures as unconfirmed.

Before you plan around county help, call Harris County Housing and Community Development or dial 211 and ask three questions: Is DAP taking new applications? What is the current maximum and price cap? Which participating lenders are active?

State programs and the Harris County HFC

Statewide help is the most reliable option right now, because it does not depend on city or county budgets. TDHCA's My First Texas Home income limit for the Houston-The Woodlands-Sugar Land area is $104,000 for 1 to 2 people and $119,600 for 3 or more, with a $566,354 price limit for most addresses (effective July 13, 2026). Targeted census tracts in Harris County get higher limits. TDHCA's My Choice Texas Home and TSAHC's Home Sweet Texas and Homes for Texas Heroes offer 2% to 5% of the loan, and repeat buyers can qualify for some options.

TDHCA also partners with the Harris County Housing Finance Corporation, which it says may add down payment gift funds for eligible buyers in its service area: Harris County outside the cities of Baytown, Deer Park, Friendswood, Houston, La Porte, League City, Missouri City, Pasadena, and Pearland. Several of those excluded cities, including Baytown, Deer Park, La Porte, and Pasadena, are served instead by the Southeast Texas Housing Finance Corporation.

Our guide to the Texas down payment assistance program explains how these state options work, including grants, forgivable liens, and repayable liens.

Options compared by location

Flood zones and insurance

Flooding is a real cost in the Houston area, and the programs treat it seriously. Under HAP, a home in the 100-year floodplain needs proof that it meets the city's floodplain rules, an elevation certificate, and flood insurance in place by closing, kept for the whole affordability period. Flood insurance is strongly recommended, though not required, in the 500-year floodplain. The county's DAP page, as it appears in search results, says homes in a flood hazard area are not eligible at all.

Even when insurance is not required, get a flood insurance quote before you make an offer. The premium can change your monthly payment enough to affect whether you qualify.

What to do next

1. Confirm the jurisdiction of the neighborhoods you are considering.
2. Take an 8-hour HUD-approved homebuyer course now. It is required for HAP and useful for every other program.
3. Check your income against the 80% AMI table and the TDHCA limit.
4. Get preapproved with a lender who works with both city programs and TDHCA or TSAHC, so you can switch if local funds stay closed.
5. Watch for HAP to reopen by checking the city's page or joining Wednesday office hours.
6. Ask the county about DAP status if you are buying in an unincorporated area.
7. Read every lien document before closing so you know when the help is forgiven or due.

Saving for earnest money and an option fee helps whichever program you use. Our guide to earnest money in Texas explains both. If debts are holding your credit back, free credit counseling can help you build a plan.

Related guides

• Texas down payment assistance program
• Earnest money in Texas
• Texas mortgage relief
• Dallas home buyers assistance program

Frequently asked questions

This guide is general information, not loan advice. Program status, amounts, and rules are set by the City of Houston, Harris County, and state agencies and can change. National Relief Program is an independent website and is not affiliated with the City of Houston, Harris County, TDHCA, TSAHC, any lender, or any government agency.