What First-Time Homebuyer Programs Are Actually Open and Funded in Houston Right Now
Lender referral pages will tell you what programs exist. They won't tell you which ones have money. We contacted the agencies directly.
Lender referral pages will tell you what programs exist. They won’t tell you which ones have money. We contacted the agencies directly.
Buyers racing to close before August school-year enrollment deadlines keep asking a question no lender referral page answers: which Houston-area down payment assistance programs are actually funded right now, not six months ago when that blog post was written?
We called the agencies. Here’s what we found as of mid-2026, along with current income limits, realistic closing timelines, and a plain account of what each program gives you — and what it costs you if you leave early.
The Geography Problem You Have to Solve First
Before you fill out anything, you need to know which programs you’re eligible for. The answer is entirely zip-code-dependent, and this one confusion wastes more application time than anything else.
The City of Houston Housing and Community Development Department (HCDD) covers only properties within the City of Houston’s incorporated limits. Full stop.
Harris County Community Services Department (CSD) covers only unincorporated Harris County — areas geographically inside the county but outside any incorporated city boundary. That includes large parts of Cypress, Humble, Channelview, and portions of the Katy area. Residents there often assume they’re ineligible because they think of themselves as being “in Katy” or “in Cypress.” Many of those addresses are, jurisdictionally, unincorporated Harris County and squarely within CSD’s service area. Check before you assume you’re out.
Texas Department of Housing and Community Affairs (TDHCA) operates statewide. Geography isn’t the binding variable. Income limits and purchase price caps are. That makes TDHCA programs the most broadly accessible and the ones lenders cite most often.
Houston Housing Finance Corporation (HHFC) administers bond-backed homebuyer assistance programs citywide. It is not HCDD, even though both carry Houston branding — a distinction that confuses buyers and, honestly, some lenders. HHFC’s programs are financed through tax-exempt mortgage revenue bonds, which means they operate independently from federal appropriations in a way that HCDD’s HOME and CDBG-funded programs do not.
| Program | Jurisdiction |
|---|---|
| HCDD Harvey Homebuyer Assistance | City of Houston properties only |
| Harris County CSD Down Payment Assistance | Unincorporated Harris County only |
| TDHCA My First Texas Home | Statewide — all Harris County addresses |
| HHFC Homebuyer Assistance (bond-backed) | City of Houston, citywide |
Look up your target address in the Harris County Appraisal District database to confirm whether it’s incorporated City of Houston, another municipality, or unincorporated Harris County. Do this first. Everything else depends on it.
The First-Time Buyer Definition Most People Get Wrong
“First-time homebuyer” is misleading. Under federal law — the definition used by HUD and adopted by TDHCA, HCDD, and Harris County CSD — a first-time homebuyer is anyone who has not owned a primary residence in the past three years.
A buyer who sold a home in 2022 or early 2023 qualifies today. Buyers who went through divorce and haven’t owned since typically qualify. Buyers who lost a home in Harvey and never bought again qualify. If you’ve been assuming you’re out, look again.
All four programs covered here use the same three-year standard. Confirm the definition when you call, since program rules can change.
For buyers who don’t qualify even under the three-year rule — say, someone who bought in 2024 and is now relocating — TDHCA runs My Choice Texas Home. Same rate and DPA structure as My First Texas Home, no first-time buyer requirement. Income and purchase price limits still apply.
Program Status as of Mid-2026
HCDD Harvey Homebuyer Assistance Program
HCDD’s program draws from federal Community Development Block Grant-Disaster Recovery money tied to Hurricane Harvey. That funding has been drawn down significantly since 2018 and is subject to periodic replenishment and suspension. This is the foundational reality of this program, and it explains why you can’t assume it’s open because a lender mentioned it recently. Lenders only know what was open when they last ran a loan through it.
Call HCDD directly at (832) 394-6200. Ask about current DPA amounts, reservation availability, and whether 2026 AMI tables are in effect.
The assistance is a forgivable second lien, typically prorated over five or ten years. Sell or refinance before the forgiveness period ends, and you repay a prorated share. Important: a rate-and-term refinance — staying in the home but lowering your rate — may still trigger repayment depending on how the lien is written. Ask HCDD explicitly whether that scenario constitutes a triggering event. Get the answer in writing from the agency, not paraphrased by your lender.
The federal appropriations environment in 2026 makes any CDBG-funded program less reliable than a bond-backed alternative. The available assistance can still be substantial, so it’s worth pursuing — but identify a backup program before you go under contract. Don’t assume HCDD funds will still be there in six months.
Harris County CSD Down Payment Assistance
Harris County CSD has provided up to $23,800 to qualifying buyers in unincorporated Harris County. Like HCDD, CSD draws from HOME and CDBG allocations, and funding fluctuates with congressional appropriations and county budget cycles.
Call CSD at (713) 578-2000. Ask whether the program is currently open, whether there’s a waitlist, and whether they’re using 2026 or 2025 HUD AMI limits.
The assistance is a forgivable second lien. Get the current forgiveness schedule from CSD directly, and ask which events — sale, transfer, refinance — trigger repayment before the term expires.
One thing worth saying plainly: if you’re in Humble, Channelview, or unincorporated Cypress and someone has told you there’s no assistance for your area, call CSD before accepting that. A lot of those addresses fall within the program’s service boundary. It takes one phone call to find out.
TDHCA My First Texas Home
My First Texas Home is the most consistently funded program in this market. It’s backed by TDHCA’s bond authority, not federal appropriations, which is why it stays open when HCDD and CSD go dark. The program is active as of mid-2026, and participating lenders can submit reservations through the TDHCA lender portal.
The program provides down payment and closing cost assistance up to 5% of the loan amount, structured as a deferred second lien. On a $300,000 purchase, that’s up to $15,000. The second lien is not forgiven — it’s due when you sell, refinance, or pay off the first mortgage. Buyers who expect to move within five or six years should factor that repayment into their math before signing anything.
My First Texas Home also comes with access to the Mortgage Credit Certificate. It’s covered in detail below. Don’t skip it.
TDHCA requires origination through an approved lender, so start at the participating lender list at tdhca.state.tx.us rather than calling your existing bank. Many conventional lenders aren’t on the list. Buyers discover this late and find it annoying, but it’s better to know now.
HHFC Homebuyer Assistance Program (Bond-Backed)
HHFC administers a bond-backed program that’s separate from HCDD even though they share a phone number and administrative infrastructure under the City of Houston Housing Department umbrella. The programs are not the same product, and the organizational arrangement generates unnecessary confusion.
Contact HHFC at (832) 394-6200. Ask specifically about the HHFC bond program, not the HCDD DPA. Ask whether the current bond series has remaining capacity and what the current DPA amount is. Because HHFC operates through bond issuance cycles, when a series is exhausted, new funds aren’t available until the next issuance is authorized and priced — which is a different kind of funding constraint than what HCDD faces but a real one.
Income Limits, Purchase Price Caps, and Whether You Actually Qualify
Income limits are household-size-dependent. This is the detail most people miss when they see a headline income figure and disqualify themselves — or assume they qualify when they don’t.
HUD publishes Area Median Income figures annually. When you call any of these programs, ask explicitly: “Are you using 2026 HUD AMI income limits or 2025 figures?” Agencies vary in how quickly they adopt updated tables after HUD releases them each spring.
HCDD and Harris County CSD use 80% of AMI, based on household size. That threshold eliminates a significant portion of moderate-income Houston families. TDHCA My First Texas Home uses 115% of AMI, which is why it reaches buyers who earn too much for HCDD or CSD but still need help. A family of three earning around $95,000 may be ineligible for HCDD and fully eligible for TDHCA. Confirm the current dollar thresholds for your household size when you call, since the figures shift with annual AMI updates.
Purchase price caps are the second filter, and they exclude a lot of the Houston market buyers actually want. The current purchase price limit for TDHCA programs in Harris County is roughly $404,000–$420,000 for non-targeted census tracts. Verify the current 2026 figure at tdhca.state.tx.us. HCDD and CSD caps sit in a similar range.
A home in Spring Branch listed at $375,000 is probably within range. A bungalow in the Heights listed at $495,000 is not. The Inner Loop, Montrose, Midtown, and most of the Heights are effectively out of scope for every program in this guide. Prices in those neighborhoods run $450,000 and up, often well above that, and the gap isn’t narrowing. Buyers targeting those areas should skip the DPA research. These programs are designed for the price range that dominates Near Northside, East End, Sunnyside, Fifth Ward, Greenspoint, and Alief, and for suburban unincorporated areas to the north and west. For broader context on where prices currently sit across those neighborhoods, see what the Houston housing market actually looks like at mid-year 2026.
One thing lenders don’t always flag: HOA fees count toward your debt-to-income ratio. A condo or townhome with a heavy HOA can push an otherwise qualifying buyer past program DTI thresholds. If you’re looking at attached product with HOA dues, run the full DTI calculation before you get attached to the address.
The Stacking Play
The largest amount of money most buyers leave on the table isn’t an additional DPA grant. It’s the Mortgage Credit Certificate that comes with TDHCA programs and gets ignored by a large share of buyers who complete the entire process.
An MCC converts a portion of the mortgage interest you pay each year into a direct federal tax credit — not a deduction, a credit. TDHCA’s MCC provides up to $2,000 per year on mortgage interest paid, for the life of the loan, as long as the home remains your primary residence. Over ten years, that’s up to $20,000 in direct federal tax benefit. Most buyers never ask for it. Most lenders don’t volunteer it because it requires extra administration on their end. It is not obscure. It is just unmarketed, and that’s aggravating.
Here’s what a realistic stacking scenario looks like:
A family of three earning $75,000 gross, buying at $300,000 at an unincorporated Harris County address:
- TDHCA My First Texas Home: 5% DPA equals $15,000 toward down payment and closing costs, deferred second lien due at sale or refinance
- MCC: Up to $2,000 per year in federal tax credits on mortgage interest
- Harris County CSD DPA: Up to $23,800 in additional forgivable assistance, if the program is currently funded and the address qualifies
Combined, that buyer enters a $300,000 home with $38,800 in layered assistance plus ongoing annual tax credit benefit. Out-of-pocket cash at closing could be reduced to lender fees and any gap between the purchase price and the assistance total. That is real money — the kind that determines whether a purchase actually pencils out.
Not every combination is permitted. Specific program rules govern what subordinate liens are allowed. Before assuming two programs can be stacked, ask your participating lender: “Is this program stackable as a subordinate lien under TDHCA guidelines?” Get the answer in writing. The MCC and My First Texas Home can be originated together through TDHCA approved lenders. The MCC is not available through non-participating lenders, which is another reason the approved lender list is the right starting point.
What DPA Actually Does to Your Closing Timeline
This is the question buyers most need answered and lenders are least likely to answer honestly. The honest answer makes the sale harder, so it often surfaces late — or not at all.
Down payment assistance adds roughly three to four weeks to a standard Houston closing. The friction points stack in sequence, not in parallel.
HUD-approved homebuyer counseling certificate is required by every program in this guide before assistance is disbursed. Houston-area agencies that have served as HUD-approved counselors include NACA Houston, Avenue CDC, and Neighborhood Centers Inc. Verify current HUD-approved status using the HUD counseling agency locator before scheduling — approval status changes. Scheduling typically runs one to two weeks from first contact, and the session itself is several hours. Budget two weeks minimum from the day you decide to pursue assistance to the day you have the certificate. That clock doesn’t start until you call.
TDHCA fund reservation must be confirmed through the lender portal once the counseling certificate is in hand and the lender submits. In a high-demand period — which mid-2026 pre-school-year crunch qualifies as — reservation processing can add days to a week on top of that.
Stacked programs require underwriting review of multiple subordinate liens, income certification against program-specific limits, and sometimes a second appraisal review. A buyer layering CSD assistance with TDHCA My First Texas Home is asking underwriters to review two separate program documents, two income certifications, and subordination agreements between the first mortgage, the TDHCA second lien, and the CSD second lien. That’s not a minor administrative task.
Standard Houston closings without assistance run 30 to 45 days on conventional or FHA financing. Adding three to four weeks for DPA means buyers using assistance should plan accordingly and say so upfront.
In mid-price neighborhoods like Spring Branch and Meyerland, where DPA buyers compete against conventionally financed buyers offering 30-day closes, the extended timeline is a real negotiating liability. Sellers who would otherwise accept a lower offer sometimes decline when they learn the close will take longer. This doesn’t mean don’t use assistance. It means your agent needs to disclose the timeline at offer time, and the offer needs to be structured around it. Don’t let the seller discover it during the contract period.
What You Need Before You Apply
Every application requires the same documents regardless of program.
HUD-approved homebuyer counseling certificate. You cannot complete any of these programs without one. Use the HUD counseling agency locator to find currently approved agencies serving Houston. Call to schedule the moment you’re serious — not after you find a house, not after you fall in love with a listing.
Approved lender. TDHCA programs can only be originated through lenders on the approved list. HCDD and HHFC programs similarly require participating lenders. You cannot walk into any bank or credit union and originate an HCDD-assisted loan. The TDHCA list is at tdhca.state.tx.us. HCDD will provide its participating lender list when you call.
Minimum credit score. Thresholds vary by program. Confirm the specific minimum with each program and your lender before assuming you qualify.
Income documentation. Two years of W-2s, 30 days of pay stubs, two months of bank statements. Self-employed applicants add two years of full tax returns — income verification requires review of P&Ls and returns rather than pay stub confirmation, and it takes longer. Build that time in.
Primary residence requirement. Every program in this guide. No exceptions. Investment properties, second homes, and short-term rental conversions are not eligible.
New construction. Appraisals on new infill townhomes in Houston’s unzoned market can come in below contract price in neighborhoods where lot values shift sharply. That triggers renegotiation and delays closing. If you’re buying new construction with DPA, get the appraisal ordered early and build a contingency buffer into your timeline. Our moving & real estate coverage tracks Houston-specific issues like this one throughout the year.
Direct Contacts and What to Ask
Before you submit an application or let a lender pull your credit, call the programs. Five questions to ask every program:
- Is the program currently open and accepting applications, or is there a waitlist?
- What is the current uncommitted fund balance?
- Are you using 2026 HUD AMI income limits or 2025 figures?
- What is the current processing timeline from complete application to fund reservation?
- If I do a rate-and-term refinance within the forgiveness period, does the second lien come due?
Agency contacts:
- HCDD (City of Houston Housing & Community Development): (832) 394-6200 | houstontx.gov/hcdd
- Harris County CSD Down Payment Assistance: (713) 578-2000 | harriscountytx.gov/csd
- TDHCA My First Texas Home / MCC: tdhca.state.tx.us
- HHFC (Houston Housing Finance Corporation): (832) 394-6200 | houstontx.gov/hcdd — same administrative contact as HCDD; ask specifically for the HHFC bond program
- HUD counseling agency locator: hud.gov
- TDHCA approved lender list: tdhca.state.tx.us
Don’t start with a lender referral page. Those pages show programs the lender is set up to originate, which is useful — but it’s not a funding status report. Call the agencies, get current answers, then bring those answers to the lender conversation.
Buyers trying to close before August enrollment deadlines should be making those calls this week. The counseling certificate alone takes two weeks to obtain, and that clock doesn’t start until you pick up the phone.
CityDesk Houston reported this piece independently. No down payment assistance lender sponsored or reviewed this article. Program funding status, income limits, and lender information change; verify directly with agencies before making financial decisions.
