Closing Cost Assistance in the Houston Area, by County
Every assistance program in the region pays closing costs, not only the down payment. Here is which one applies to your county, what it covers, and how seller concessions and lender credits fill the rest.
Closing costs on a Houston purchase run about 2% to 4% of the price. Every down payment assistance program in the region can be applied to them: TSAHC assistance may fund the whole cash to close including closing costs and prepaids, TDHCA's 2% to 5% covers down payment and closing costs, Harris County's award covers down payment, prepaids and closing costs, Montgomery County's subsidy covers all three, and the City of Houston caps reasonable closing costs at 6% of the price. On top of that the seller may pay up to 6% of the price on FHA, 3% to 9% on conventional depending on your down payment, and 4% plus normal closing costs on VA.
Which program pays closing costs in your county
| County | Local program | Statewide programs that also apply |
|---|---|---|
| Harris, inside Houston city limits | City of Houston HAP: up to $75,000 forgivable, closing costs capped at 6% of price. Paused for new applications as of September 2026. | TSAHC, SETH 5 Star, TDHCA |
| Harris, unincorporated | Harris County DAP: up to $40,000, about $27,100 of it for down payment, prepaids and closing costs. | TSAHC, SETH 5 Star, TDHCA |
| Fort Bend | Fort Bend County HFC: $10,000 for first time buyers while funds last; terms from the administrator. | TSAHC, SETH 5 Star, TDHCA, USDA in rural areas |
| Montgomery, outside Conroe | Montgomery County HOME subsidy: up to $12,600 for down payment, closing costs and prepaids. | TSAHC, SETH 5 Star, TDHCA, USDA in rural areas |
| Brazoria | None found on an official county source. | TSAHC ($189,000 limit, $214,200 Heroes), SETH 5 Star, TDHCA ($126,000 / $144,900), USDA ($144,900 / $191,300) |
| Galveston | None found on an official county source. | TSAHC, SETH 5 Star, TDHCA |
Statewide: TSAHC up to 5% of the loan (grant or 3 year forgivable lien), SETH 5 Star up to 5% (forgivable or deferred lien), TDHCA 2% to 5% (forgivable or deferred lien). All three may be applied to closing costs and prepaids under their own rules; none pays cash back to the buyer.
Seller concession caps by loan type
| FHA | Interested parties (seller, agent, builder, lender) may contribute up to 6% of the sales price toward origination fees, other closing costs, prepaids and discount points. The 6% includes buydowns, interest payments and the upfront mortgage insurance premium. Contributions above 6% reduce the value used for the loan dollar for dollar. Concessions may not pay the borrower's 3.5% minimum investment. (HUD Handbook 4000.1) |
| Conventional | For a primary residence or second home: 3% when the loan is above 90% of value, 6% at 75.01% to 90%, 9% at 75% or below, based on the lesser of price or appraised value. Investment property: 2%. Concessions may pay closing costs, prepaids and up to 12 months of HOA dues, not the down payment or reserves. (Fannie Mae Selling Guide B3-4.1-02, May 7, 2025) |
| VA | The seller may pay the buyer's normal closing costs and market rate discount points without limit, and concessions beyond that up to 4% of the reasonable value: the VA funding fee, prepaid taxes and insurance, gifts, extra points for a permanent buydown, escrowed funds for a temporary buydown, and payoff of the buyer's debts. (VA Lenders Handbook Pamphlet 26-7, Chapter 8) |
| Lender credit | The lender applies money to your closing costs in exchange for a higher rate, shown as a credit on the Loan Estimate. Under FHA rules a premium pricing credit from the lender does not count toward the 6% cap when the lender is not also the seller, agent or builder. |
Putting it together on one closing
A first time buyer in unincorporated Harris County under 80% AMI on a $280,000 FHA purchase can have the county award cover the 3.5% down payment and prepaids, a seller concession inside the 6% cap cover the closing costs, and a lender credit cover whatever is left. A repeat buyer in The Woodlands at $450,000 on a conventional loan has TSAHC's 5% for the down payment and a 3% seller concession for closing costs. The order matters because each source has its own cap and its own rules about what it may touch; we lay them out on the Loan Estimate before you write the offer. See closing cost help for the full worked example and grants versus second liens for what each structure costs you later.
Where these numbers come from
Sources, read September 3, 2026
- https://www.hud.gov/sites/dfiles/OCHCO/documents/4000.1hsgh.pdf
- https://selling-guide.fanniemae.com/sel/b3-4.1-02/interested-party-contributions-ipcs
- https://www.knowva.ebenefits.va.gov/system/templates/selfservice/va_ssnew/help/customer/locale/en-US/portal/554400000001018/content/554400000314677/VA-Pamphlet-VAP26-7-Chapter-08-Borrower-Fees-and-Charges-and-the-VA-Funding-Fee
- https://www.benefits.va.gov/HOMELOANS/documents/docs/VA_Buyers_Guide.pdf
- https://kb.tsahc.org/39170/kb/article/102806/33-assistance-options-nonbond-dpa-with-or-without-mcc-bond-dpa
- https://welcomehome.tdhca.texas.gov/uploads/My-First-Texas-Home-Program-Matrix-TMS.pdf
- https://hcd.harriscountytx.gov/Residents/Homeownership-Programs/Down-Payment-Assistance
- https://hcd.harriscountytx.gov/Portals/hcd/Documents/Down%20Payment%20Assistance/Combine%20DAP%20Fact%20Sheet%20English-Spanish%202026_V3.pdf
- https://hcd.harriscountytx.gov/Portals/hcd/Documents/Down%20Payment%20Assistance/DAP%202021%20Guidebook.pdf
- https://hcd.harriscountytx.gov/Portals/hcd/Documents/Down%20Payment%20Assistance/DAP%20Participating%20Mortgage%20Lenders%2012.2025.pdf
- https://houstontx.gov/housing/hap.html
- https://houstontx.gov/housing/plans-reports/guidelines/hap/Homebuyer_Assistance_Program_HAP_Guidelines-8.0-Entitlement-072126.pdf
- https://eastersealshouston.org/wp-content/uploads/2026/05/2026-MCDP-program-flyer-1.pdf
- https://eastersealshouston.org/housing-montgomery-county/
- https://www.mctx.org/departments/departments_a_-_c/community_development/community_resources.php
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.
The full record of every program on this page, with source URLs and retrieval dates, is published as open data at /data/dpa-programs-2026.json.
Questions buyers ask
Is there closing cost assistance in Houston?
Yes. Every down payment assistance program in the Houston area may be applied to closing costs: TSAHC (up to 5% of the loan, may fund the whole cash to close), SETH 5 Star (up to 5%), TDHCA (2% to 5%), Harris County DAP (about $27,100 of the $40,000 award), Montgomery County ($12,600), and the City of Houston HAP when it is accepting applications. Seller concessions and lender credits cover the rest.
How much can a seller pay toward closing costs in Texas?
Up to 6% of the price on FHA, 3% to 9% on a conventional primary residence depending on your down payment (3% under 10% down, 6% from 10% to 25%, 9% above 25%), 2% on an investment property, and on VA the buyer's normal closing costs plus concessions up to 4% of the reasonable value.
Can down payment assistance be used for closing costs?
Yes. TSAHC assistance may cover down payment, closing costs, prepaids and loan fees. TDHCA covers down payment and closing costs. Harris County's award covers down payment, prepaids and closing costs. Montgomery County's subsidy covers all three. None of them pays cash back to the buyer.
Does Harris County have closing cost assistance?
Yes, through its Down Payment Assistance Program. The 2026 award is up to $40,000 for first time buyers in unincorporated Harris County under 80% of area median income, and about $27,100 of it is available for down payment, prepaids and closing costs after the required insurance and warranty items.
Does Fort Bend County have closing cost assistance?
The Fort Bend County Housing Finance Corporation offers $10,000 in assistance to first time buyers for 2026 while funds last; whether it may be applied to closing costs comes from the administrator. Fort Bend buyers also use TSAHC, SETH 5 Star and TDHCA, all of which cover closing costs.
What is a lender credit?
Money the lender applies to your closing costs in exchange for a slightly higher interest rate, shown as a credit on the Loan Estimate and the Closing Disclosure. It is the mirror image of paying discount points.
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.
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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.