City of Houston Homebuyer Assistance Program (HAP)
Up to $75,000 as a forgivable, no interest lien for first time buyers whose household earns 80% of area median income or less. As of September 3, 2026 the City is not accepting new applications. Here is what the program is, and what to do while it is paused.
Paused for new applications
The City of Houston Homebuyer Assistance Program provides up to $75,000 toward down payment and closing costs for first time buyers purchasing inside the Houston city limits, as a no interest lien forgiven over 5 years (up to $50,000) or 8 years ($50,000.01 to $75,000). Household income must be at or below 80% of area median income, the City does not set a credit score minimum, and the home must be your principal residence for the whole forgiveness period. On September 3, 2026 the City's HAP page stated it is no longer accepting or processing applications because funds are exhausted.
Where the program stands right now
On September 3, 2026 the City's HAP page said the program is no longer accepting or processing additional applications because funds are exhausted. That is not unusual for a grant funded program: HAP reopens when the City allocates new funding, and it has paused before. Three things to do in the meantime:
- Run the checker above. If your household fits the 80% AMI limit, you likely also fit TSAHC, whose limit is far higher, and SETH 5 Star, neither of which is paused.
- If the address is outside the city limits, the Harris County program is open and pays up to $40,000.
- Ask us to flag you for the reopening. We watch the City's page and the guideline revisions, and a buyer who is already educated and pre approved goes to the front of the six week queue.
The program terms, from Guidelines version 8.0 (June 23, 2026)
| Amount | Up to $75,000, sized to the household's financial need by the City's subsidy layering analysis. It is not a flat award. |
| Structure | No interest forgivable loan secured by a lien. Awards up to $50,000 are forgiven 20% a year over 5 years. Awards of $50,000.01 to $75,000 are forgiven 12.5% a year over 8 years. Sell, transfer, refinance or move out early and the unforgiven balance is due. Less than one year in the home means nothing is forgiven. |
| Income limit | Household income at or below 80% of HUD area median income for CDBG funded assistance (the guidelines allow up to 120% for TIRZ funded assistance where it exists). Table below. |
| Price cap | None stated. The price may not exceed the appraised value. Reasonable closing costs are capped at 6% of the price. |
| Credit and ratios | The City does not consider credit score; your first mortgage lender still applies its own minimum. Front end ratio 33%, back end 45%. |
| Buyer status | First time buyer, meaning no ownership in the last 3 years. Primary residence for the full 5 or 8 year period. |
| Where | Inside the City of Houston tax boundaries. Fifth Ward and Kashmere Gardens temporarily suspended. |
| Property | Single family, condominium, townhouse, cooperative unit, or a manufactured home permanently affixed to a permanent foundation. |
| Cash rules | $350 minimum personal contribution. Less than $50,000 in liquid assets at eligibility and at closing. |
| Education | Homebuyer education certificate from a HUD approved agency. |
2026 household income limits (80% AMI)
| Household size | 80% AMI limit (2026) |
|---|---|
| 1 person | $58,250 |
| 2 people | $66,600 |
| 3 people | $74,900 |
| 4 people | $83,200 |
| 5 people | $89,900 |
| 6 people | $96,550 |
| 7 people | $103,200 |
| 8 people | $109,850 |
HUD FY2026 income limits for the Houston-The Woodlands-Sugar Land metro area, effective June 1, 2026. Household income counts everyone in the home, not only the people on the loan.
How to apply when it reopens
- Confirm the address is inside the city limits. The program follows the City of Houston tax boundary, not the mailing address. Homes in Bellaire, West University, Pasadena or unincorporated Harris County are outside it. The Fifth Ward and Kashmere Gardens area is temporarily suspended pending an EPA environmental investigation.
- Get the homebuyer education certificate. From a HUD approved agency. Required before the City issues a pre approval.
- Apply online with HCDD when the program reopens. Processing takes about six weeks. A pre approval letter is good for 3 months with no extensions, so line the application up with your house search, not before it.
- Meet the cash rules. At least $350 of your own money, and less than $50,000 in liquid assets both at eligibility and at closing. The applicant, co applicant and spouse must be U.S. citizens or permanent residents.
- Close on a fixed rate first mortgage. Adjustable rate and seller financed loans are not allowed. The City sizes the assistance to your need with a subsidy layering analysis, and reasonable closing costs are capped at 6% of the price.
What it pairs with
HAP requires a fixed rate first mortgage and the City decides the award size after it sees the whole picture, so the loan program choice matters. FHA at 3.5% down keeps the required cash low, and a conventional HFA loan can make sense above 80% AMI when the TIRZ funded option applies. The guidelines defer to the City's Single Family Program Manual on whether another program's second lien may sit alongside HAP, so layering with TSAHC or Harris County is a question we put to the City on your file, not a promise on a web page.
Where these numbers come from
Sources, read September 3, 2026
- https://houstontx.gov/housing/hap.html
- https://houstontx.gov/housing/plans-reports/guidelines/hap/Homebuyer_Assistance_Program_HAP_Guidelines-8.0-Entitlement-072126.pdf
Program terms change with funding and with each guideline revision. The program's own document controls; this page records what it said on the date above. Where a program does not publish a term, this page says so.
Questions buyers ask
Is the City of Houston Homebuyer Assistance Program accepting applications?
Not as of September 3, 2026. The City's HAP page states the program is no longer accepting or processing additional applications because its funds are exhausted. It reopens when new funding is allocated. Buyers who fit the program usually also fit TSAHC and SETH 5 Star, which are open now.
How much does the City of Houston give for down payment assistance?
Up to $75,000 under Guidelines version 8.0, sized to the household's need rather than paid as a flat amount. It covers down payment and closing costs, with closing costs capped at 6% of the purchase price.
Does the Houston HAP have to be paid back?
Only if you leave early. It is a no interest lien forgiven 20% a year over 5 years for awards up to $50,000, or 12.5% a year over 8 years for awards from $50,000.01 to $75,000. Sell, transfer, refinance or stop living in the home before the period ends and the unforgiven share is due.
What are the income limits for Houston HAP in 2026?
Household income at or below 80% of the HUD area median income: $58,250 for one person, $66,600 for two, $74,900 for three, $83,200 for four, $89,900 for five, $96,550 for six, $103,200 for seven and $109,850 for eight. The guidelines allow up to 120% of AMI only where TIRZ funding is available.
Do I need a minimum credit score for the Houston HAP?
The City does not consider credit score. Your first mortgage lender applies its own minimum, and the City's ratio limits are 33% front end and 45% back end.
Can I use Houston HAP outside the city limits?
No. The home must be inside the City of Houston tax boundaries. Unincorporated Harris County has its own program with up to $40,000, and the statewide programs work anywhere.
Confirm it in one call
The checker reads the published limits. A short call confirms which program fits your address, your household and your timeline, and what it does to your cash to close.
Run the checker above Book 15 minutes with Ben
InSync Homes and Loans. Ben Helstein, Texas real estate broker and mortgage loan originator, NMLS #1577314. InSync Loans NMLS #1829321. Equal Housing Opportunity. Nothing on this page is a commitment to lend or a guarantee of terms; every loan is subject to lender underwriting, property review, and credit approval. Cap rate estimates are screens built from public listing data and market rents, not appraisals.