Current down payment assistance guidelines, updated from one source.
These figures are read from Lendmire’s centralized down payment assistance standards source and update automatically when the programs change. Every state and city guide in this series reads the same source.
Of the purchase price
Measured on the purchase price or the appraised value, whichever is lower; the largest option covers the down payment and reaches closing costs, and the smaller options cover the 3.5% FHA minimum, in whole or, on the lowest tier, in part.
Covers the FHA down payment, in whole or in part
This covers the 3.5% FHA minimum down payment in whole or, on its lower tier, in part, and is forgiven at closing: no lien on the home, no monthly payment, no interest. It opens on the area income limit or on a qualifying category.
On the forgivable and repayable options
The forgivable and repayable options have no income limit at all — one of the biggest advantages of this program. Only the nothing-to-repay option asks for income at or below 140% of the area median, or a qualifying category.
Credit score to start
This is the lowest score that opens an option here — the nothing-to-repay option; the forgivable second liens start a little higher and the repayable options higher still, so a stronger score opens more choices.
| Option | Assistance | What you repay | Credit · mortgage · units |
|---|---|---|---|
| Grant-style assistance — nothing to repay | 2% or 3.5% of the price | Nothing — released at closing | 620+ · FHA 203(b), FHA repair escrow, FHA Limited 203(k), FHA Standard 203(k) · 1–4 units |
| Forgivable second lien — three-year | 3.5% of the price | Nothing after 36 on-time mortgage payments | 640+ · FHA 203(b), FHA Limited 203(k), HUD-184, USDA · 1–2 units |
| Forgivable second lien — five-year | 3.5% of the price | Nothing after 60 on-time mortgage payments | 640+ · FHA 203(b), FHA Limited 203(k), HUD-184, USDA · 1–2 units |
| Repayable second lien — thirty-year amortization, ten-year balloon | 3.5% or 5% of the price | Second lien, 30-year amortization, balloon in year 10 | 660+ · FHA 203(b), FHA Limited 203(k), HUD-184, USDA · 1–2 units |
| Closing-cost repayable second lien | 3.5% or 5% of the price | Second lien, 30-year amortization, balloon in year 10 | 660+ · FHA 203(b) · 1–2 units |
| Refinance-cost second lien (repayable) | 1% to 3.5% of the balance | Second lien, repaid | 660+ · FHA 203(b) · 1–4 units |
Current down payment assistance snapshot · updated September 7, 2026 · six options offered in Texas · no option requires a first-time buyer · no option combines with another assistance program · owner-occupied primary residences only.
Down payment assistance options are consumer mortgage programs arranged through select wholesale lenders, licensed in sixteen states, paired with FHA, USDA, or HUD-184 first liens. Assistance is stated as a percentage of price or value, never as a dollar figure a specific borrower would receive; the forgivable and repayable options are second liens with their own disclosures. Eligibility depends on the first lien’s approval, the option’s rules, the property, and full underwriting, subject to lender program eligibility. The calculator’s rate is an editable market benchmark, not a quote, and its payment is an illustrative estimate; no fee or lender identity appears on this page. Lendmire is a mortgage broker and never the lender, and is not affiliated with or acting on behalf of FHA, VA, USDA, HUD, or the federal government. Lendmire, LLC — NMLS #2371349. Equal Housing Opportunity.
What down payment assistance is — and how the options differ.
For Houston, TX buyers, the first-time home buyer programs come down to three parts: the first lien carries most of the price, the assistance covers the minimum investment, and the shape of the assistance — nothing to repay, forgivable, or repayable — decides what it costs to carry.
For the program overview, see Lendmire’s down payment assistance program, or the statewide guide at Down Payment Assistance in Texas.
Assistance covers the FHA down payment
The gap the program closes for a Houston buyer is the minimum investment: the assistance covers that share of the price, the first lien carries the rest, and the buyer’s own savings stay for the move.
Four shapes: grant, forgivable, repayable, refinance
Nothing to repay, forgiven over time, or repaid with a balloon: the three purchase shapes in Houston, TX cover the same minimum investment and differ in what the buyer owes afterward, and a fourth, the refinance-cost option, serves an existing FHA loan.
Credit floors, mortgage programs, and unit counts
A Houston file is placed by three things — the credit tier, the first-lien program, and the property — and the options table on this page shows the floor, the first liens, and the unit limit for every option offered in Texas.
Eligibility without a first-time-buyer rule
Eligibility is broader than most buyers expect: repeat buyers qualify, income limits apply only to the nothing-to-repay option, and the categories that open it include first responders, educators, medical personnel, civil servants, and military.
The assistance is measured on the price, so the calculator starts there. It then applies the option you choose, your own cash, and an editable benchmark rate to show the loan, the mortgage insurance, and the payment.
Where Houston’s first-time and moderate-income buyers shop — and how the assistance fits.
Census housing and income data describe who buys in Houston, TX and what it costs to get in; a lender reads those figures as context for the first lien, not as underwriting inputs.
Read the figures as backdrop. The renter share says how many households the program could serve; the median value says how far the minimum investment sits from a typical price; the two together describe where the program closes most files.
Data sources: U.S. Census Bureau — ACS 5-Year (2024) housing and population estimates, including tenure, home values, gross rents, and household income.
Distinct Houston submarkets, distinct property rules.
Houston’s entry-level stock is not one market. Each submarket below carries its own price points, its own property rules, and its own fit with the assistance options.
Condominiums close to work
Buyers in Houston’s condominium buildings use the program to bridge the down payment, with the building’s approval status settled early so the closing is not held up. On a home at Houston’s median value, the FHA minimum investment comes to about $9,700 — the figure the assistance is built to cover.
Small multi-unit homes, owner-occupied
A buyer who lives in one unit of a Houston duplex can use the program on the whole building; the nothing-to-repay option, which reaches four units, makes a house-hacking purchase reachable with the minimum investment covered. Houston itself counts a population near 2.33M.
Older neighborhoods and renovation loans
The older streets of Houston are full of homes that need work, and the assistance pairs with a renovation first lien: the assistance is figured on the purchase price, while the loan itself covers price plus repairs. Median gross rent in Houston is about $1,361 a month — the payment many renters already carry.
New construction and infill
A newly built Houston home is eligible; the buyer’s own funds requirement is covered by the assistance, and the builder’s closing date is met once the first lien is approved. About 58% of Houston’s households rent — roughly 538,885 renter households, the pool the program exists for.
Manufactured homes on owned land
Manufactured housing on owned land near Houston is eligible, with the option decided by the home’s width: the nothing-to-repay option accepts single-width homes, while the second-lien options accept double-width only. Median household income in Houston sits near $64,813 on the latest Census estimate.
Townhomes and attached homes
The townhome rows of Houston are where many first purchases happen, and the assistance is designed for exactly that: the minimum investment covered, the closing costs reachable on the larger option. The median owner-occupied home value in Houston runs near $277,800 on the latest Census estimate.
Read the submarkets as orientation. The file’s figures come from the first lien, the option, and the program’s rules.
Four ways Houston buyers put down payment assistance to work.
How Houston buyers put the program to work depends on the first lien, the property, and what the help needs to cover; these four paths cover most files.
Pair the assistance with a USDA or HUD-184 mortgage
In USDA-eligible areas around Houston, the forgivable and repayable options pair with a no-down-payment first lien (the separate closing-cost option is FHA only); HUD-184 first liens pair the same way.
Buy a small multi-unit home and live in one unit
House-hacking in Houston, TX pairs with the program when the buyer occupies a unit; the unit count decides which option applies, and the first lien carries the building.
Buy a first home with the down payment covered
The most common Houston, TX file: an FHA first lien, the assistance covering the minimum investment, and the buyer’s own funds reserved for moving costs and reserves.
Cover closing costs too on the larger option
A Houston buyer who needs more than the minimum investment uses the repayable option that covers down payment, closing costs, and prepaid items, including costs paid outside closing.
Size the assistance on a Houston price before requesting a quote.
Enter a Houston purchase price, choose an assistance option offered in Texas, and add any cash of your own. The calculator sizes the FHA minimum investment, applies the assistance to the down payment and closing costs, builds the FHA loan with its upfront and monthly mortgage insurance, and estimates the payment at an editable market benchmark rate — with housing and total ratios when you enter income.
Houston FHA payment with assistance
Starting assumptions reflect Houston’s home values; change any field and the loan, the mortgage insurance, and the payment are recalculated.
Editable benchmark: 7.28% as of October 1, 2026 · Freddie Mac 30-year average via FRED®. A conventional market reference, not an FHA loan quote.
Illustrative starting assumptions: a $280,000 price near Houston’s median owner-occupied home value, the strongest assistance option offered in Texas applied against the FHA minimum investment, a thirty-year term at the current Freddie Mac benchmark, property taxes and insurance estimated for Texas (U.S. Census Bureau). Every field is editable.
Illustrative estimate only — not a Loan Estimate, approval, quote, or commitment to lend. The rate field carries the weekly Freddie Mac thirty-year conventional benchmark, a market reference and not an FHA loan quote; your rate is set by the lender at lock. FHA mortgage insurance follows HUD’s published schedule for the term, leverage and loan size entered; taxes, insurance and dues are editable estimates; closing costs are not included; a repayable second lien adds its own payment, which is not shown here. Consumer mortgage lending licensed in sixteen states. Lendmire is not affiliated with or acting on behalf of FHA, USDA, HUD, or the federal government.
Same buyer, three very different closings.
A Houston, TX buyer can reach the closing table several ways; the difference is where the minimum investment comes from and what it costs to carry afterward.
Assistance on an FHA loan, your own down payment, or assistance on a USDA or HUD-184 loan.
The structure for a Houston buyer who qualifies for the payment but not the cash to close — the help is sized on the price and the option decides what, if anything, is owed afterward.
For a Houston, TX buyer with the cash in hand, the plain FHA purchase is the cleaner file; the assistance exists for the buyer who does not have it yet. For the first lien itself, see Lendmire’s FHA loan program.
On a USDA or HUD-184 first lien in Houston, TX the assistance is forgivable or the ten-year repayable kind; the separate closing-cost option is FHA only. For the USDA first lien, see the USDA loan program.
If the payment fits but the cash to close does not, down payment assistance is the structure; if the cash is there, the plain purchase; if the property is USDA-eligible, the USDA first lien with assistance for costs.
What to prepare for a Houston scenario review.
A typical starting file for a first purchase with assistance.
This is a general preparation guide, not a universal checklist. The selected lender may request additional information based on the mortgage, the assistance option, the property, and the eligibility category. Nothing here is legal or tax advice.
Local details that can change the loan.
These are the points a lender reads on a Houston assistance file before the option is confirmed; each one can move the structure.
Use these checks to keep the Houston file clean and fundable.
Settle the option, the first lien, the property’s eligibility, and the category before the appraisal is ordered; a Houston file that clears these reads cleanly.
- Know the option: read the second lien as the loan it is.
- Confirm the category: remember that the second-lien options need no category and carry no income limit.
- Take the course: schedule a HUD-approved course early.
The option decides what you owe afterward
The same minimum investment can be covered three ways on a purchase in Houston, TX, and the difference is entirely in what happens after closing: nothing, nothing if the first lien stays current, or a second loan that comes due; the options table shows what is offered.
The eligibility category for the nothing-to-repay option
The category is checked at application on the nothing-to-repay option, together with the signed assistance application and the education certificate; no option requires a first-time buyer, and the second-lien options carry no income limit.
Homebuyer education on the nothing-to-repay option
The nothing-to-repay option requires a HUD-approved homebuyer education or pre-purchase counseling course, online or in person; the buyer pays for it up front and the cost is credited back at closing. The second-lien options do not require it.
Escrow holdbacks for minor repairs
A Houston home with a small repair list does not have to wait for the work before closing; the escrow holdback carries it, within the program’s cap and timeline, with an inspection when the work is done.
The balloon on the repayable option
A Houston buyer choosing the larger option should read the balloon as a planning date: the second lien is settled by sale, refinance, or payoff before it, and the first lien continues on its own schedule.
From a Houston pre-approval to keys with the assistance in place.
The path from a Houston pre-approval to keys with the assistance in place runs through the option first and the paperwork second.
Pick the option
Lendmire reads the Houston scenario against the options offered in Texas: the credit tier, the first lien, the unit count, the category, and whether the help must reach closing costs.
Get the mortgage approved
The FHA, USDA, or HUD-184 first lien runs through automated underwriting, with the assistance attached as its own loan where a second lien applies; a Houston buyer’s income, credit, and reserves are read the way the first lien requires.
Clear the property
The appraisal, the condominium approval where one applies, the manufactured-home title, and the county loan limit are settled; small repairs go into an escrow holdback where the option allows it.
Close both loans together
The Houston closing carries both instruments: the first lien and the assistance, each documented on its own and closed together, with the education certificate in the file where it applies.
A brokerage that pairs the assistance to the loan.
Pairing the right assistance to the right first lien for a Houston buyer means knowing which option the credit opens, which the property allows, and what each costs to carry — before the contract is signed.
The option, matched to the buyer
The nothing-to-repay option where it fits, the forgivable options where it does not, the repayable option where closing costs are the hurdle — chosen for the Houston, TX buyer, not by default.
The mortgage, matched to the property
USDA where the address is eligible, HUD-184 where the buyer qualifies, FHA everywhere; the Houston, TX first lien is the foundation the assistance stands on.
The right wholesale program
A Houston file is matched to the wholesale program whose option fits the buyer, and Lendmire manages the first lien and the assistance together through closing.
Trusted by first-time buyers & families alike.
Houston down payment assistance FAQs
Plain answers to the questions Houston buyers ask most about down payment assistance, before you request a review. Every file is underwritten individually; nothing here is a commitment.
Do I have to be a first-time homebuyer?
No — and that surprises most Houston buyers. The program has no first-time requirement; owning a home before does not close a single option, and being a first-time buyer is simply one of the doors into the nothing-to-repay option.
Is there an income limit?
Income limits apply to one option only — the nothing-to-repay grant — and only for buyers outside its categories. Everything else on this page is open at any income, which is why higher-earning Houston households use it.
What first-time home buyer programs are available in Houston?
Four shapes paired with a government mortgage: a nothing-to-repay option released at closing; forgivable second liens with no interest and no payment, released after an on-time payment period; a repayable second lien with a balloon that also reaches closing costs and prepaids; and a refinance-cost option for an existing FHA loan. The options table on this page shows what is offered in Texas.
Do I have to pay the assistance back?
For a Houston buyer, the nothing-to-repay option where offered, otherwise a forgivable second lien; the options table on this page shows what each costs to carry.
What credit score do I need?
Scores in the low six hundreds open the first option, and each step up in score opens more of them. The mortgage program has its own rules too, so the credit score, the mortgage, and the property are read together before the option is named.
What does Lendmire do on a Houston first-time home buyer file?
Lendmire matches the option to the buyer and the first lien to the property, then runs both through approval and closing; it brokers the loan through its wholesale network and is never the lender.
What if my mortgage is above the county loan limit?
A high-balance first lien narrows the choice to the repayable options in Houston, TX.
Can I buy a duplex or a fourplex with assistance?
Two units on the second-lien options, up to four on the nothing-to-repay option, always with the buyer living in one of them.
What is the repayable option and when does it make sense?
It is a loan — the repayable options are the only purchase options with a payment — in exchange for covering the most. A Houston buyer chooses it for the closing-cost coverage or the high-balance pairing.
Is there an option for refinancing?
The refinance-cost option covers the costs of an FHA refinance with a repayable second lien, at its own credit floor and combined-leverage limit.
Ready to size the assistance on a Houston home? Start with the price.
A first read of a Houston assistance scenario takes a few minutes and commits you to nothing; the option, the category, and the property rules are explained before anything is ordered.
This guide covers Houston — for the statewide options, categories, and property rules, see Down Payment Assistance in Texas, part of Lendmire’s down payment assistance program.
Nearby markets in Texas: Pearland · Pasadena · Missouri City · Sugar Land · Baytown · League City · The Woodlands · Fulshear
Related programs: FHA Loans · USDA Loans · FHA 203(k) Rehab Loans