Buying your first home in Houston can feel exciting and overwhelming at the same time. You might be wondering how to cover the down payment, whether you qualify for help, or how VA loans fit into the mix. The good news is Houston and Harris County offer several paths to make homeownership more affordable, including grants, down payment assistance, and VA options for eligible service members and veterans. In this guide, you’ll learn what programs exist, who qualifies, how they work together, and the steps to take next. Let’s dive in.
What first-time buyer help looks like in Houston
Houston buyers can tap into three main types of programs: federal loan products, statewide assistance, and local city or county help.
- Federal options include FHA, VA, and USDA loans. These are national programs delivered through local lenders.
- Statewide programs come from the Texas Department of Housing and Community Affairs and the Texas State Affordable Housing Corporation. These often pair a first mortgage with down payment assistance or a Mortgage Credit Certificate.
- Local programs are offered by the City of Houston and Harris County. These are typically down payment or closing cost assistance tied to funding cycles.
To explore current offerings and rules, start with these official resources:
Program availability, income limits, and purchase price caps change often. Always confirm current guidelines on these official pages before you apply.
Who qualifies and what programs expect
Most first-time buyer programs define a first-time buyer as someone who has not owned a principal residence in the past three years. Some programs waive this for specific groups, including certain veteran-focused products.
Expect income and purchase price limits that vary by household size and location. Property type and occupancy rules matter. You will typically need to live in the home as your primary residence and choose an eligible property type such as a single-family home, condo in an approved community, or a townhome.
Lenders apply credit and debt-to-income standards, which must meet the first mortgage guidelines. Many programs require you to complete a HUD-approved homebuyer education course. For FHA basics and counseling resources, visit HUD.
Types of assistance you can use
Understanding how the assistance is structured can help you plan your budget and timeline.
- Grant (no repayment): Limited and funding-dependent. Often targeted to specific buyers or areas.
- Forgivable second mortgage: A second lien that can be forgiven over a set period if you stay in the home. Terms vary by program.
- Deferred second mortgage: No monthly payment while you occupy the home. Repaid when you sell, refinance, or reach the end of the term.
- Repayable second mortgage: A traditional second loan with monthly payments that affects your debt-to-income ratio.
- Mortgage Credit Certificate (MCC): A federal tax credit on a percentage of the mortgage interest you pay each year. In Texas, MCCs are administered through TDHCA. Ask your lender if combining an MCC with your loan makes sense for your tax situation.
VA loan benefits and how DPA fits
If you are a veteran, active-duty service member, or certain surviving spouse, a VA loan may offer a strong path to homeownership. VA loans typically require no down payment, no private mortgage insurance, and have competitive terms.
There is usually a one-time funding fee, although some borrowers are exempt. The fee can often be financed into the loan. Learn more at the VA’s official home loan page: VA Home Loan Program.
You can often pair a VA first mortgage with state or local down payment assistance. Program rules vary, so confirm with the DPA provider and your lender early. Remember that VA loans have occupancy requirements and property condition standards. VA appraisals include minimum property requirements, and certain safety or structural issues may need to be fixed before closing.
Local focus: City of Houston vs Harris County
Your property’s location determines which local program you can use. If the home is inside City of Houston limits, look for assistance through the City’s Housing & Community Development Department. For homes in unincorporated Harris County or participating areas, check county-level programs.
Always verify the exact address, since program boundaries can be very specific. Availability and assistance amounts can change with federal and local funding cycles.
Step-by-step: your path to approval
- Clarify your status and budget. Confirm whether you meet the first-time buyer definition, your veteran status, and a price range that fits likely income and purchase price limits.
- Complete homebuyer education if required. Many programs require a HUD-approved course before closing. Start early so it does not delay your timeline. See resources at HUD.
- Choose an experienced lender. Ask lenders if they actively originate loans with your target DPA or MCC program and, if VA-eligible, whether they regularly pair VA loans with assistance.
- Get preapproved for your first mortgage. Your lender should confirm in writing that your chosen DPA can be combined with your loan product.
- Align your home search with program rules. Confirm property type, condition standards, and location eligibility before you write offers.
- Apply for assistance through the correct channel. Some DPA is requested through participating lenders. Others require a separate application to the city, county, or state agency. Timing matters.
- Coordinate the closing package. Make sure second-lien or grant documents, disclosures, and education certificates are complete and delivered to the title company on time.
Avoid these common pitfalls
- Treating DPA amounts or rules as fixed. They change with funding cycles and annual updates.
- Choosing a lender who rarely pairs DPA with VA, FHA, or conventional loans. Lender experience can save time and stress.
- Delaying homebuyer education. Missing a certificate can push your closing date.
- Overlooking property standards. FHA and VA appraisals include condition checks that can trigger repairs before closing.
- Assuming all addresses qualify. City and county programs often have tight boundaries.
Will USDA or FHA help too?
FHA loans offer a low down payment option with more flexible credit guidelines. They also require mortgage insurance. You can learn about FHA on HUD.
USDA loans can be a good fit in eligible rural or suburban areas, sometimes with zero down. Check general program information and area eligibility tools through USDA Rural Development. Some DPA programs may be compatible with USDA loans. Confirm with your lender.
Statewide programs you should know
State programs can help you layer assistance and find participating lenders who understand Houston-area rules.
- TDHCA offers first mortgage options, down payment assistance, and Mortgage Credit Certificates. Review current program outlines and eligibility at TDHCA.
- TSAHC provides down payment assistance and special offerings like Homes for Texas Heroes, which may be a fit for teachers, first responders, and veterans. See current program details at TSAHC.
Because these programs update income and price limits annually, verify your eligibility on the program sites and with a participating lender.
How your agent helps you win
A skilled agent helps you match the right program to the right property and keeps your timeline on track. You get guidance on which addresses qualify, how to avoid appraisal issues, and what to expect at each step from application to closing.
If you are VA-eligible or on a tight relocation schedule, you need a partner who understands PCS realities, VA loan requirements, and how to coordinate with lenders who work daily with DPA and MCCs. You also want clear communication and fast problem-solving when a property needs repairs to meet loan standards.
Ready to explore your options and line up the right lender, program, and home search strategy in Houston or Harris County? Connect with Evie Hansen for personalized guidance and a smooth plan from preapproval to keys. Schedule Your Free Military Relocation Consultation.
FAQs
What is down payment assistance in Houston and how does it work?
- DPA can be a grant, a forgivable second mortgage, a deferred second with no monthly payment, or a repayable second. The structure and rules depend on the specific city, county, or state program.
Can you use a VA loan with Houston or Harris County DPA?
- Often yes. Many assistance programs allow a VA first mortgage, but you must confirm program rules and lender participation early since requirements vary.
Are first-time buyer grants in Houston truly free money?
- Some grants do not require repayment, but they are limited and funding-dependent. Many local programs use forgivable or deferred second mortgages instead of cash grants.
What counts as a first-time buyer for Texas programs?
- Most programs consider you first-time if you have not owned a principal residence in the past three years. Some targeted programs may waive this rule for certain groups.
Do DPA programs slow down closing in Houston?
- They can add steps like education, extra underwriting, or program approvals. Starting early and using an experienced lender helps keep your timeline on track.
How do you check if an address qualifies for city or county assistance?
- Verify on the official program pages for the City of Houston or Harris County, and confirm with your lender. Boundaries and eligibility areas are specific and can change.
Can non–first-time buyers get help in Houston?
- Some programs waive the first-time requirement for targeted groups or locations. Review current rules at TDHCA, TSAHC, the City of Houston, and Harris County sites and confirm with a participating lender.
