Statewide, no first time buyer rule

SETH 5 Star Texas Advantage Program, 2026

Up to 5% of your loan amount toward down payment and closing costs, as a 3 year forgivable second lien or a 30 year deferred second lien, for buyers anywhere in the Houston area with a 640 score and income under $183,925.

SETH 5 Star, run by the Southeast Texas Housing Finance Corporation, gives buyers up to 5% of the final loan amount for down payment and closing costs. You choose a 3 year forgivable second lien or a 30 year deferred second lien with no payments and no interest. There is no first time buyer requirement and no maximum sales price. The minimum credit score is 640 and the 2026 income limit for Harris, Fort Bend, Montgomery, Brazoria and Galveston counties is $183,925 (the Charter tier, with free education and the widest options, is $84,080).

The 2026 terms, from SETH's program pages

Amount	Up to 5% of the final loan amount. The exact percentage options are set on the lender rate sheet; SETH publishes only the 5% maximum. Plus a $3,500 grant when combined with the SETH MCC.
Structure	Option 1: 3 year forgivable second lien, forgiven in full after 3 years. Option 2: 30 year deferred payment second lien, no payments, no interest, due on sale, refinance or at the end of 30 years, in exchange for a lower first mortgage rate. The $3,500 MCC amount is a grant.
Income limit	Harris, Fort Bend, Montgomery, Brazoria, Galveston, Liberty, Waller, Chambers, Austin and San Jacinto counties: $183,925 standard, $84,080 Charter (free education and special assistance options). Effective June 15, 2026. USDA loans use a separate table.
Price cap	None.
Credit score	640.
Buyer status	No first time buyer requirement.
Where	All of Texas except Travis County and the city limits of El Paso, Grand Prairie and McKinney. Every Houston area county is eligible.
Property and occupancy	Not published on the public program pages; the program manual governs. Owner occupancy is standard for the FHA, VA, USDA and conventional first liens it uses.
Education	One borrower completes the SETH online course.

SETH versus TSAHC

The two statewide programs look alike and differ in three places. TSAHC starts at a 620 score, SETH at 640. TSAHC offers a true grant on government loans; SETH's assistance is always a second lien unless you add the MCC grant. TSAHC's Houston area income limit is $156,000 ($176,800 for Heroes), SETH's is $183,925. Neither requires first time buyer status. We price both on the same loan and show you the difference in rate and cash to close before you pick. Details on the TSAHC page and the Homes for Texas Heroes page.

How to apply

Pick the assistance shape. Forgivable (gone after 3 years) or deferred (30 years, due when you sell or refinance, paired with a lower first mortgage rate). A third choice, Best Rate, takes no assistance at all for the lowest rate.
One borrower takes the SETH course. The online eHome America course costs $100, is free at the Charter income level, and the certificate is good for 12 months.
Apply through a SETH participating lender. Nothing goes to SETH directly. The lender reserves the assistance on your loan: 30 year fixed FHA, VA, USDA or conventional.
Add the MCC if you are a first time buyer. Combining the loan with the SETH Mortgage Credit Certificate adds a $3,500 grant on top of the second lien.
Close. The assistance funds at the title company and is applied to your down payment and closing costs. No cash back.

Where these numbers come from

Sources, read September 3, 2026

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 SETH 5 Star program a grant?

Not any more, except the $3,500 that comes with the SETH Mortgage Credit Certificate. SETH's official pages now describe the assistance as a second loan: a 3 year forgivable second lien or a 30 year deferred second lien with no payments and no interest. Older third party sites still call it a grant.

What are the SETH 5 Star income limits for 2026?

For Harris, Fort Bend, Montgomery, Brazoria, Galveston, Liberty, Waller, Chambers, Austin and San Jacinto counties the standard limit is $183,925 and the Charter limit is $84,080, effective June 15, 2026. USDA loans use a separate SETH table.

Do I have to be a first time buyer for SETH 5 Star?

No. SETH 5 Star has no first time buyer requirement and no maximum sales price, which makes it one of the two statewide programs open to repeat buyers, with TSAHC.

What credit score does SETH 5 Star require?

640. TSAHC starts at 620, so a buyer between 620 and 639 should look at TSAHC first.

Where can I use SETH 5 Star?

Anywhere in Texas except Travis County and the city limits of El Paso, Grand Prairie and McKinney. All of the Houston area qualifies.

How much does SETH 5 Star give?

Up to 5% of the final loan amount for down payment and closing costs, with the exact percentage options set on the lender rate sheet, plus a $3,500 grant when the loan is combined with the SETH MCC.

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.