Down Payment Assistance Programs in Houston, Texas

Why Houston Is a Great Place to Buy a Home

Houston is one of the most dynamic and affordable major cities in the United States, and for first-time home buyers it represents an incredible opportunity. As the fourth-largest city in the country and the economic engine of Southeast Texas, Houston offers a diverse job market, world-class healthcare and educational institutions, no state income tax, and a cost of living that remains well below coastal metros like Los Angeles, New York, and San Francisco.

The Houston housing market is particularly attractive for buyers who plan to use down payment assistance. Home prices in many Houston-area neighborhoods remain accessible, with median home prices in Harris County still well within the purchase price limits set by Texas DPA programs. This means you can take full advantage of DPA and still have plenty of options when searching for your first home.

Whether you are a lifelong Houstonian, a recent transplant drawn by the city's booming energy, technology, or medical sectors, or someone relocating from out of state, this guide will walk you through every DPA option available in the Houston area.

Houston Housing Market Overview

The Houston-area housing market covers a sprawling metropolitan region that includes Harris County and several surrounding counties such as Fort Bend, Montgomery, Brazoria, and Galveston. This geographic diversity means there is a wide range of home prices, neighborhoods, and property types to choose from.

As of early 2026, the median home price in the Houston metro area sits in the range of $290,000 to $330,000, depending on the specific area. Many neighborhoods offer homes well below that median, making Houston one of the most affordable major metro areas in Texas for buyers using DPA.

Key market trends working in favor of Houston buyers:

• Steady inventory: Houston has consistently maintained a healthier level of housing inventory compared to other major Texas metros like Austin and Dallas, giving buyers more options and more negotiating power.
• New construction: Houston's lack of zoning restrictions has encouraged prolific new home construction, particularly in suburban areas and master-planned communities.
• Price stability: While home prices have appreciated over the past decade, Houston has avoided the extreme price spikes seen in other Sun Belt markets, keeping affordability within reach for DPA-eligible buyers.

State DPA Programs Available in Harris County

Houston-area buyers in Harris County (and surrounding counties) have access to all four major Texas state DPA programs. Here is how each one applies to the Houston market.

My First Texas Home (TDHCA)

This program is available to first-time home buyers (or those who have not owned in three years) purchasing in Harris County. It provides up to 5% of the loan amount as a forgivable second lien. Harris County income limits for this program are among the more generous in the state due to the area's higher median income.

Learn more in our detailed guide: How Does the My First Texas Home Program Work?

My Choice Texas Home (TDHCA)

Open to both first-time and repeat buyers in Harris County, this program provides up to 5% in DPA as a deferred second lien. This is a strong option if you have owned a home before but still need help with your down payment.

Homes for Texas Heroes (TSAHC)

Houston is home to thousands of teachers, first responders, healthcare workers, and veterans who qualify for the Heroes program. With the Houston Independent School District being one of the largest in the nation and the Texas Medical Center employing tens of thousands of healthcare professionals, many Houstonians are eligible for this profession-based DPA program.

Learn more: How Does TSAHC Down Payment Assistance Work?

Home Sweet Texas (TSAHC)

Available to all eligible Houston-area buyers regardless of profession, Home Sweet Texas offers both grant and second lien options with up to 5% in DPA. This is the most broadly accessible option for Houston buyers who do not qualify for profession-specific programs.

Income Limits for the Houston Area

Income limits for DPA programs in the Houston area are set by county and household size. Harris County, as a high-population metro county, generally has income limits that reflect the area's higher cost of living.

While specific limits are updated annually, here are approximate income thresholds for Harris County DPA programs:

Household Size	Approximate Income Limit
1-2 persons	$95,000 - $120,000
3+ persons	$110,000 - $135,000

These are general ranges and the exact limits vary by program and year. The most accurate way to determine whether your income qualifies is to check your eligibility using our free online tool. Many Houston-area buyers are surprised to learn they qualify even with household incomes well above $100,000.

Purchase price limits in Harris County are also generous, typically allowing homes priced up to $400,000 or more depending on the program. This provides access to a wide range of Houston neighborhoods and property types.

Houston-Specific Tips for DPA Buyers

Buying a home in Houston with DPA is straightforward, but there are some local considerations that can help you make the most of your experience.

Consider Flood Zone Factors

Houston's flat terrain and Gulf Coast proximity mean that flood risk is a genuine consideration for home buyers. When shopping for a home, pay attention to whether the property is located in a FEMA-designated flood zone. Homes in flood zones will require flood insurance, which adds to your monthly housing costs. Properties outside of flood zones are generally more affordable to insure and maintain.

Your real estate agent can help you identify flood zone status for any property, and your loan officer at Cook Brothers Mortgage Team at Cornerstone First Mortgage (NMLS #173855) will factor flood insurance costs into your overall affordability analysis.

Leverage New Construction

Houston is one of the top markets in the country for new home construction. Many builders offer incentives to buyers using DPA programs, including closing cost credits, upgraded features, and preferred lender arrangements. When combined with state DPA, builder incentives can significantly reduce your out-of-pocket costs.

Keep in mind that some builders have preferred lenders, but you always have the right to choose your own lender. Working with an experienced DPA lender like our team ensures you get the best combination of rate, DPA, and service.

Explore Diverse Neighborhoods

One of Houston's greatest strengths is the diversity of its neighborhoods. Here are some areas that are particularly popular with first-time buyers using DPA:

• Katy: Located in western Harris County and extending into Fort Bend County, Katy is known for its excellent schools, master-planned communities, and family-friendly atmosphere. Home prices range widely, with many options under $350,000.
• Spring and Klein: These northwest Houston communities offer convenient access to The Woodlands and major employment centers along the I-45 and Highway 249 corridors. New construction is abundant and affordable.
• Pearland and Friendswood: South of Houston, these communities in Brazoria County offer suburban living with strong schools and easy access to the Texas Medical Center and NASA's Johnson Space Center.
• Cypress: Northwest of Houston, Cypress has experienced significant growth with numerous new master-planned communities. It offers excellent schools and a range of home prices accessible to DPA buyers.
• Pasadena and Deer Park: East of Houston, these communities offer some of the most affordable home prices in the metro area, making them ideal for buyers looking to maximize the value of their DPA.
• Missouri City and Sugar Land: Located in Fort Bend County, these communities offer diverse, family-oriented neighborhoods with strong schools and a wide range of housing options.

Take Advantage of No State Income Tax

Texas has no state income tax, which means more of your paycheck stays in your pocket each month. For Houston home buyers, this tax advantage translates to greater buying power and easier qualification for DPA programs. When combined with DPA, the absence of state income tax makes Houston one of the most financially accessible cities for homeownership in the entire country.

How to Get Started in Houston

The process for using DPA in Houston is the same as anywhere in Texas. Here is a quick summary:

1. Get pre-qualified with an approved DPA lender like Cook Brothers Mortgage Team at Cornerstone First Mortgage.
2. Determine which programs you qualify for based on your income, credit, profession, and buyer status.
3. Complete homebuyer education online at your convenience.
4. Find a home in the Houston area that meets the program's purchase price and property requirements.
5. Apply and close with your DPA funds applied at the closing table.

The entire process typically takes 30 to 45 days from contract to closing. Our team has helped numerous Houston-area buyers successfully navigate the DPA process, and we are here to guide you every step of the way.

Use our DPA calculator to see how much assistance you could receive based on Houston-area home prices.

Ready to Get Started?

Houston offers first-time home buyers an unbeatable combination of affordability, economic opportunity, and access to the best down payment assistance programs in the state. With up to 5% in DPA available through multiple programs, including grants that never have to be repaid, homeownership in Houston may be closer than you think.

Check your eligibility today with our free online quiz and discover which DPA programs you qualify for in the Houston area. Or call us directly to speak with a specialist. Reach Tanner Cook at 480-420-4918 or Zac Cook at 480-406-2016 at Cook Brothers Mortgage Team at Cornerstone First Mortgage.

Zac Cook is a licensed mortgage loan originator (NMLS #2111496). This content is for informational purposes only and does not constitute financial advice. Loan approval is subject to credit and property qualification. Equal Housing Lender.