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Most Houston home buyers have no idea that programs exist right now that can hand them $10,000, $30,000, even $50,000 toward a down payment and closing costs. Some of that money is a grant. Free money. You never pay it back.
I'm Ben Helstein, owner of InSync Homes & Loans. Over the past 20+ years, I've helped hundreds of Houston buyers access down payment assistance programs they never knew existed. The problem isn't that these programs are hidden. The problem is that most lenders don't bother with them because the paperwork is more complex than a standard loan.
At InSync, we specialize in structuring these programs for our clients. Here is every DPA option available to Houston area buyers in 2026, with real numbers, income limits, and eligibility details.
| Program | Max Assistance | Type | First-Time Buyer Required? | Income Limit (Harris Co.) |
|---|---|---|---|---|
| SETH (Southeast Texas Housing) | Up to 5% of loan | Grant or forgivable second lien | No | $122,100 |
| TSAHC Homes for Texas Heroes | 5% of loan amount | Grant or forgivable second lien | No | $122,100 |
| TSAHC Home Sweet Texas | 5% of loan amount | Grant or forgivable second lien | No | $122,100 |
| City of Houston HAP | Up to $50,000 | Forgivable loan (5 years) | Yes (or haven't owned in 3 years) | 80% AMI (~$72,650 for family of 4) |
| TDHCA My First Texas Home | Up to 5% of loan | Second lien (deferred, 0%) | Yes (or veteran) | $122,100 |
| TDHCA My Choice Texas Home | Up to 5% of loan | Second lien (deferred, 0%) | No | $122,100 |
| Harris County CDBG | Up to $24,999 | Forgivable loan | Yes | 80% AMI |
| Chenoa Fund | 3.5% or 5% of loan | Forgivable or repayable second | No | No income limit (FHA guidelines) |
Let me break down each one in detail so you know exactly what you are working with.
SETH is a local housing finance corporation that operates one of the most popular DPA programs in the Houston metro area. If you are buying in Harris, Fort Bend, Montgomery, Galveston, Brazoria, or any of the surrounding counties, SETH should be the first program you evaluate.
The GoldStar program operates similarly to the 5 Star but with slightly different rate structures and assistance percentages. It offers 3% to 5% in DPA depending on the specific option selected.
SETH is administered locally, which means processing tends to be faster than state-level programs. Their team knows the Houston market, and they have strong relationships with local title companies and underwriters. At InSync, SETH is one of the programs we use most frequently because the combination of generous assistance, flexible eligibility, and efficient processing makes closings smoother.
SETH is one of the best kept secrets in Houston real estate. A household earning $110,000 per year can receive over $15,000 in grant money toward a home purchase. That is not a typo. That is real, available money that most lenders never mention because they don't want to deal with the paperwork.
| Home Price | Loan Amount (96.5% FHA) | 5% SETH Grant | FHA Down Payment (3.5%) | Remaining for Closing Costs |
|---|---|---|---|---|
| $250,000 | $241,250 | $12,063 | $8,750 | $3,313 |
| $300,000 | $289,500 | $14,475 | $10,500 | $3,975 |
| $350,000 | $337,750 | $16,888 | $12,250 | $4,638 |
| $400,000 | $386,000 | $19,300 | $14,000 | $5,300 |
| $450,000 | $434,250 | $21,713 | $15,750 | $5,963 |
On a $350,000 home with an FHA loan, the SETH grant covers your entire down payment plus $4,638 toward closing costs. Out of pocket? Potentially very little.
Wondering what a DPA assisted purchase would actually cost you per month? Run the numbers in our mortgage analyzer and see how assistance programs change your monthly picture.
TSAHC runs two of the best DPA programs in Texas. They are available statewide, including all Houston metro areas.
Originally designed for teachers, firefighters, EMS workers, corrections officers, and veterans. It has since expanded, and the income limits are generous enough that many Houston professionals qualify.
Similar structure to Homes for Texas Heroes but open to all eligible buyers regardless of profession.
TSAHC and SETH are very similar in structure and benefits. The right choice depends on the specific rate offered on the day you lock, the lender's familiarity with each program, and whether you qualify for the Heroes program. At InSync, we compare both programs side by side for every DPA client and choose the one that saves you the most money.
This is the most generous DPA program available in the Houston area, but it comes with more restrictions.
On a $300,000 home inside Houston city limits with an FHA loan:
| Cost | Amount |
|---|---|
| Down Payment (3.5%) | $10,500 |
| Estimated Closing Costs | $9,000 |
| Prepaid Taxes and Insurance | $3,500 |
| Total Cash Needed | $23,000 |
| HAP Assistance (up to $50,000) | -$23,000 |
| Out of Pocket | $0 |
Zero out of pocket. I have closed deals exactly like this. The HAP program can cover everything. You walk into the closing, sign papers, and walk out with keys. No check written.
The catch: the income limits are strict, and the program has limited funding. It operates on a first-come, first-served basis, and when the money runs out, it is gone until the next funding cycle. At InSync, we monitor funding availability and move fast when it is open.
TDHCA operates two statewide programs that work well for Houston buyers.
The key difference between TDHCA and TSAHC or SETH: TDHCA assistance is a deferred loan you repay when you sell or refinance. TSAHC and SETH offer grant options that you never repay. For most buyers, the grant option is the better deal if you qualify. But TDHCA can sometimes be stacked with other programs, so it is worth evaluating.
This program is ideal for buyers looking in areas like Cypress (unincorporated), Spring, or parts of Northeast Harris County that fall outside Houston city limits. Funding availability changes year to year, so check with us for current status.
The Chenoa Fund is a national program administered by CBC Mortgage Agency that works specifically with FHA loans. It is worth knowing about because it has no income limits on the repayable option.
The Chenoa Fund fills a gap for buyers who earn too much for TSAHC, SETH, or TDHCA but still need down payment help. If you are a Houston household earning $130,000+ and need assistance, this may be your path.
Here is where having a broker who specializes in DPA makes a real difference. In many cases, you can combine programs to maximize your assistance.
A first-time buyer purchasing a $300,000 home inside Houston city limits with household income under $72,650.
| Program | Assistance | Type |
|---|---|---|
| City of Houston HAP | $23,000 (covers full down payment + closing costs) | Forgivable loan (5 year) |
| Remaining HAP funds | Up to $27,000 for repairs, rate buydown, or reserves | Forgivable loan (5 year) |
| Total Assistance | Up to $50,000 | |
| Buyer Out of Pocket | $0 |
A buyer purchasing a $375,000 home in unincorporated Harris County with household income of $105,000.
| Source | Amount | Covers |
|---|---|---|
| SETH 5 Star Grant (5%) | $18,131 | Down payment + partial closing costs |
| Seller Concessions (3%) | $11,250 | Remaining closing costs + prepaids |
| Total Assistance | $29,381 | |
| Buyer Out of Pocket | $500 to $1,500 | Earnest money and option fee only |
I have structured deals like this regularly. The key is knowing which programs allow seller concessions on top of DPA, and getting the numbers right in the initial offer. Read my guide on seller concessions in Houston for more details.
In some cases, Harris County CDBG funds can be layered with TDHCA assistance for properties in unincorporated Harris County. Availability depends on the funding cycle, but when both programs are open, a first-time buyer can receive $24,999 from CDBG plus up to 5% from TDHCA.
I estimate that 40% of the Houston buyers I work with qualify for some form of down payment assistance and don't know it. Many households earning over $100,000 per year qualify for SETH or TSAHC grants. This is not just for low-income buyers. It is for working professionals, teachers, nurses, first responders, and families who would rather keep cash in the bank than drain their savings for a down payment.
Program eligibility depends on both your personal qualifications and the property's location.
| Program | Eligible Areas |
|---|---|
| SETH | Harris, Fort Bend, Montgomery, Galveston, Brazoria, Waller, Chambers, Liberty, and surrounding counties |
| TSAHC | All of Texas (statewide) |
| City of Houston HAP | Inside Houston city limits only |
| TDHCA | All of Texas (statewide) |
| Harris County CDBG | Unincorporated Harris County and participating jurisdictions outside Houston city limits |
| Chenoa Fund | Nationwide |
If you are buying in Katy, Sugar Land, Pearland, The Woodlands, or League City, SETH, TSAHC, and TDHCA are your primary options since those cities fall outside Houston city limits and unincorporated Harris County. For a complete look at Katy neighborhoods and costs, read our Katy TX neighborhood guide.
Not true. SETH and TSAHC rates are typically within 0.25% to 0.50% of standard market rates. On a $300,000 loan, that might cost an extra $30 to $50 per month. Compare that to the $12,000 to $15,000 in free grant money you are receiving. The math works out heavily in your favor.
False. SETH and TSAHC income limits for Harris County are $122,100. A teacher married to an engineer can qualify. A dual-income household with two mid-career professionals can qualify. Check your eligibility before assuming you make too much.
DPA closings take about the same 30 to 45 days as standard loans when handled by an experienced broker. The key is starting the DPA application simultaneously with your loan application, not after. At InSync, we process them in parallel so there is no delay.
The SETH and TSAHC grant options are true grants. You do not repay them. Ever. The forgivable second lien options are forgiven after 3 years of on-time payments. The city HAP forgivable loan is forgiven after 5 years. Read the specific terms for each program, but many of them result in money you never pay back.
SETH, TSAHC, TDHCA My Choice, and Chenoa Fund do not require first-time buyer status. If you owned a home 10 years ago and sold it, you can still access these programs. Only the City of Houston HAP and Harris County CDBG strictly require first-time buyer status.
Before reaching out to us, here is a quick self-assessment.
Here is our process, step by step.
We have processed hundreds of DPA-assisted purchases in Houston. We know the administrators, we know the paperwork, and we know how to avoid the delays that trip up less experienced lenders.
If you are still comparing loan types, read our FHA vs. Conventional Loans in Houston comparison to understand which base loan works best with DPA programs. For a full walkthrough of the buying process, check our First-Time Home Buyer Guide. And to understand how much home you can afford once DPA is factored in, see How Much House Can You Afford in Houston.
Down payment assistance exists for a reason: to help people buy homes. If you qualify, use it. There is no shame in it. There is no catch. It is smart financial planning.
At InSync Homes & Loans, we have built our practice around knowing every program available and structuring the best possible deal for every client. Whether you are a first-time buyer earning $55,000 or a repeat buyer household earning $115,000, there is very likely a program with your name on it.
If you are thinking about buying a home in Houston in 2026, let's talk. Book a free consultation or call me at 713-548-7350. We will check your eligibility for every program in about 30 minutes. No cost. No obligation. Just answers.
About the Author: Ben Helstein is a dual licensed real estate broker and mortgage loan originator at InSync Homes & Loans in Houston, TX (NMLS #1577314, Company NMLS #1829321). He helps Houston buyers, sellers, and investors navigate real estate and financing under one roof. Learn more at https://insync.homes.
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