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If you’ve been on TikTok or Instagram lately, you’ve probably seen it: “Get up to $40,000 for your down payment in the Houston area. All you need is a 580 credit score.”
Part of that is true. Harris County down payment assistance really can go up to $40,000. But the “only stipulation” part isn’t true, and there’s a bigger problem the videos skip.
As of October 2026, Harris County’s Down Payment Assistance Program (DAP) is only accepting buyers affected by Hurricane Beryl or the 2024 Derecho. The county says it has reached maximum capacity and can no longer take applications from everyone else.
So before you build your home search around $40,000 in free money, here’s what the program actually requires, who can still use it, and what Houston-area buyers can use instead.
Is Harris County Down Payment Assistance Still Available?
Yes, but only for a narrow group right now. Harris County Housing & Community Development (HCD) states on its Down Payment Assistance page that the program is accepting participants affected by Hurricane Beryl and the Derecho, and that applications from non-affected buyers can no longer be accepted.
That means two things:
- If you were affected by Beryl or the Derecho, you should call HCD at 832-927-4955 and ask what documentation they need from you.
- If you weren’t affected, the county program likely isn’t an option today. Funding can change, though, so it’s worth checking back.
Meanwhile, the City of Houston’s Homebuyer Assistance Program (HAP) is also paused. The city’s HAP page says funds are exhausted and it isn’t accepting or processing new applications until funding is replenished.
That’s the part most videos leave out. The good news is that statewide programs are still taking buyers, and we’ll get to those below.
How Much Is the Harris County DAP Award?
The maximum award is $40,000, up from $23,800. Harris County made that change effective November 18, 2025, and also raised the liquid asset cap from $15,000 to $30,000.
However, the full $40,000 isn’t all cash for your down payment. The county breaks it into a base award plus eligible incentives: What the award can cover Maximum Down payment, prepaid items and closing costs (base award) $27,100 Homeowners insurance with wind and hail coverage (1 year) $5,700 Flood insurance (1 year) $3,000 Home warranty (3 years) $1,800 HOA dues (1 year) $1,500 Elevation certificate, if needed $500 Harris County title policy $125 to $400 Total maximum award$40,000
Also, the county gives you only the amount you actually need to close. If your gap is $18,000, you won’t get $40,000.
The money works as a “silent” second mortgage. You don’t make monthly payments on it, but it comes with an affordability period:
- Awards under $25,000: 5 years
- Awards from $25,000 to $40,000: 10 years
In plain English, you need to live in the home as your primary residence for that period. Selling, renting it out or moving early can trigger repayment.
Who Qualifies for Harris County Down Payment Assistance?
Here’s the full list from Harris County HCD. Notice it’s a lot more than a credit score.
Buyer requirements
- First-time buyer: You haven’t owned a home in the 3 years before applying.
- Credit score: At least 580.
- Income: Your household must be income qualified under HUD limits. The program is built for low-to-moderate income households.
- Debt ratios: Housing costs can’t exceed 39% of your income, and total debt can’t exceed 42%.
- Homebuyer education: You must complete a homeownership course from a HUD-approved provider.
- Your own money: You must put at least $1,000 toward the purchase.
- Liquid assets: No more than $30,000 in cash, stocks or bonds.
- Status: U.S. citizen or permanent resident alien.
Property requirements
- Location: The home must be in unincorporated Harris County, within the county’s service area map.
- Price limits: $285,000 for an existing home and $296,000 for new construction.
- Census tract: The home must sit in an eligible census tract on the county’s census tract map.
- Condition: The home has to meet Harris County’s minimum property standards.
That 580 credit score is a minimum, not a guarantee. Your lender still has to approve your first mortgage.
👉 Search Homes in Unincorporated Harris County and Nearby Communities
Why Doesn’t It Work Inside Houston City Limits?
Harris County’s program serves unincorporated areas. Larger cities, including Houston, generally run their own housing programs with their own federal funding.
That’s why the TikTok says “as long as the home is not in Houston.” It’s also why an address that says “Houston, TX” can still qualify. Many addresses in unincorporated areas use a Houston mailing address even though they sit outside city limits.
Unincorporated communities buyers commonly look at include parts of Cypress, Spring, Klein, Atascocita, Aldine, Channelview, Crosby and Huffman. Still, don’t rely on the mailing address. Check the exact property on the county’s service area map, and confirm whether the home pays City of Houston taxes on the Harris Central Appraisal District record.
If you’re buying in those areas, you’ll also want to understand your Harris County homestead exemption and MUD taxes, since both change your monthly payment.
What the Hurricane Beryl and Derecho Programs Require
Since the county DAP is focused on storm-affected buyers right now, here’s what Harris County lists for its separate Beryl/Derecho Homebuyer Assistance Program:
- Household income at or below 80% of area median income (AMI)
- A credit score of 620 or higher
- A current Texas ID or driver’s license for every household member 18 or older
- U.S. citizen or permanent resident
- The last 2 years of tax returns
- A valid prequalification letter from a mortgage lender
- An 8-hour HUD-certified homebuyer class, with a certificate for both the applicant and co-applicant
- Current on any child support payments
The county says assistance of up to 45% can go toward a price reduction, down payment and closing costs, which may include a mortgage rate buydown. It also requires a 10-year affordability period, with prorated repayment if you move out early. Ask HCD exactly how the 45% is calculated for your purchase and what proof of storm impact they need.
2026 Harris County income limits (80% AMI)
These limits took effect in May 2026, per Harris County HCD. Household size Maximum household income 1 $58,250 2 $66,600 3 $74,900 4 $83,200 5 $89,900 6 $96,550 7 $103,200 8 $109,850
Keep in mind that “income” means total household income, not just your pay stubs. The lender and the county count everyone in the household.
A Real-World Example: How the $40,000 Breaks Down
Let’s say a first-time buyer finds a $280,000 existing home in an unincorporated part of Harris County, and the property qualifies. Example assumptions Amount Purchase price $280,000 FHA minimum down payment (3.5%) $9,800 Buyer’s required contribution $1,000 minimum Base award available for down payment, prepaids and closing costs Up to $27,100 Incentives (insurance, warranty, HOA and more) Up to $12,900 Affordability period if the award is $25,000 or more 10 years
In this example, the base award alone could cover the 3.5% down payment and a good part of the closing costs in Texas. On the other hand, the incentives only apply to specific costs, so they won’t show up as extra cash.
This is an example only, not tax, legal or financial advice. Your numbers depend on your loan, the property, taxes and insurance.
I walk through deal math like this on The Kory White Show, including what assistance actually covers at the closing table.
What Can Houston-Area Buyers Use Instead?
If you don’t qualify for the county program right now, you still have options. These are the main ones to ask a lender about.
SETH 5 Star Texas Advantage
The Southeast Texas Housing Finance Corporation’s program offers assistance of up to 5% of the final loan amount on FHA, VA and USDA loans, according to its 2026 program highlights. There’s no first-time buyer requirement, and SETH doesn’t set its own home price limits. Income limits and a SETH homebuyer course still apply.
It’s available across Texas except inside the city limits of El Paso, McKinney and Grand Prairie, and in Travis County. That means it can work inside Houston city limits, too.
TSAHC Homes for Texas Heroes and Home Sweet Texas
The Texas State Affordable Housing Corporation offers down payment assistance statewide. Teachers, police, firefighters, EMS, corrections officers, veterans and active military can use Homes for Texas Heroes. Everyone else who meets the income limits can use Home Sweet Texas.
TSAHC requires a 620 credit score and an approved homebuyer course. Assistance comes either as a grant you don’t repay, or as a deferred forgivable second lien that you only repay if you sell or refinance within 3 years.
TDHCA’s Texas Homebuyer Program
The Texas Department of Housing and Community Affairs offers down payment assistance and mortgage credit certificates through participating lenders. Start at The Texas Homebuyer Program site to find a lender.
I break down how these programs compare in my guide to Texas first-time home buyer programs.
City of Houston HAP (when it reopens)
When funding returns, HAP is one of the largest programs in the area. The city lists up to $75,000 in assistance for buyers at or below 80% AMI. The program doesn’t set its own credit score requirement or purchase price limit, but the home must pay City of Houston taxes. Call 832-394-6200 to ask about reopening, and remember that applications are first-come, first-served.
If you lived in Houston during Hurricane Harvey, also read up on the Harvey Homebuyer Assistance Program 2.0.
Seller concessions
Assistance programs aren’t the only way to cut cash to close. On an FHA loan, a seller can contribute up to 6% of the price toward your closing costs. Conventional limits vary based on your down payment. In a market with more inventory, that’s often worth negotiating.
What Buyers Commonly Miss With Down Payment Assistance
Assistance helps, but it comes with tradeoffs. Here’s what I’d want you to know before you count on it:
- Timelines run longer. County and city programs add their own review, inspection and approval steps. Build that into your contract dates.
- Not every lender participates. You need a lender approved for the specific program. Get pre-approved with one that does.
- The home has to pass inspection standards. Some homes that work for a regular buyer won’t meet program property standards.
- The rate can be higher. Some DPA programs pair assistance with a slightly higher interest rate. Compare the full monthly payment, not just cash to close.
- You’re committing to stay. A 5-year or 10-year affordability period matters if a job move could be in your future.
- Insurance and taxes still count. Your monthly payment includes property taxes and insurance, which run high in Harris County. Review Texas homeowners insurance costs before you set a budget.
Before you shop, figure out how much house you can afford in Texas with taxes and insurance included. That number matters more than the size of any grant.
How to Get Started
- Check your credit and income. Know your score, household income and current debts.
- Take a HUD-approved homebuyer course. Most programs require one, and the certificate usually stays valid for about a year.
- Talk to a participating lender. Ask which programs you qualify for today, not which ones went viral.
- Confirm the property location. Verify city limits, taxing jurisdiction and census tract before you write an offer.
- Work with an agent who knows the process. Assistance programs have deadlines and paperwork that affect your offer terms.
👉 Search Homes for Sale or Lease
📘 Download the Texas Home Buyer’s Guide
The Bottom Line
The $40,000 Harris County program is real. It’s just not open to most buyers right now, and it was never a “580 credit score and you’re in” deal.
Instead of chasing one viral program, look at the full picture: what you qualify for today, where you want to live, and what your monthly payment looks like with taxes and insurance. That’s how you buy a home you can actually keep.
If you’re not ready to talk yet, I cover Houston-area buying programs and market updates on The Kory White Show. When you are ready, we can map out your options together.
📅 Schedule a Free 15-Minute Consultation
Frequently Asked Questions About Harris County Down Payment Assistance
Is the Harris County $40,000 down payment assistance real?
Yes. Harris County raised its maximum DAP award to $40,000 effective November 18, 2025. However, as of October 2026, the county says it’s only accepting applicants affected by Hurricane Beryl or the Derecho because the program reached capacity.
What credit score do I need for Harris County down payment assistance?
The standard DAP requires at least one credit score of 580. The separate Beryl/Derecho Homebuyer Assistance Program requires 620. Either way, your lender still has to approve your mortgage.
Can I use Harris County down payment assistance in the city of Houston?
No. The county program covers unincorporated Harris County only. Homes inside Houston city limits would fall under the City of Houston’s HAP, which is currently closed due to exhausted funds.
Do I have to pay Harris County down payment assistance back?
Not if you meet the terms. It works as a silent second mortgage forgiven after an affordability period of 5 years for awards under $25,000, or 10 years for awards of $25,000 to $40,000. Moving out, selling or refinancing early can trigger repayment.
What is the income limit for Harris County down payment assistance?
The county programs serve low-to-moderate income households. For the Beryl/Derecho program, the 2026 limit at 80% AMI is $83,200 for a household of 4 and $58,250 for a single person. Confirm the current limit for your household size with a participating lender.
What if I earn too much for Harris County’s program?
Look at SETH 5 Star and TSAHC, which use different income limits, and at seller concessions. A participating lender can run you through each program in one conversation.
Can I combine Harris County DAP with other assistance?
Sometimes, but it depends on the programs and the lender. Stacking rules vary, so ask your lender before you assume two programs will work together.
Do I need to be a first-time home buyer?
For the Harris County DAP, yes. You can’t have owned a home in the past 3 years. SETH 5 Star doesn’t have a first-time buyer requirement, and TSAHC’s down payment assistance doesn’t require it either.
About Kory White Real Estate Group
Kory White Real Estate Group helps buyers, sellers, investors and relocating clients throughout Texas, including Dallas-Fort Worth, Greater Houston, Austin, San Antonio and surrounding communities. Services include buying, selling, relocation, new construction, first-time buyers, luxury, investments and leasing.
We help clients understand the home, the numbers, the market, and the deal.
From Sugar Land to Sherman. From Manvel to Mansfield.
Dallas: 469-336-3027
Houston: 281-738-4446
Website: korywhiterealestategroup.com
For agents: If your buyers keep bringing you viral DPA claims, I talk through conversations like that on Mentors + Masterminds = Escrows. And if you want buyer consultation training, follow-up systems and coaching behind your business, take a look at what I’m building with CoFounders.
Program details are based on Harris County HCD, City of Houston HCD, TSAHC and SETH program pages reviewed in October 2026. Programs, funding and limits change often. Confirm current terms with the program and a participating lender before you make decisions.
