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Homebuyer Assistance Program (HAP)

Houston, Texas

Last verified
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Assistance

$50,000

The maximum the program publishes — not an offer

Income limit

80% AMI

Of area median income; varies by county and household size

Repayment

Forgivable

Forgiven after 5 years

What is Homebuyer Assistance Program (HAP)?

Homebuyer Assistance Program (HAP) is a forgivable loan for homebuyers in Houston, Texas.

  • Up to $30,000 forgivable second mortgage at 0% interest for first-time homebuyers in Houston city limits. HOME-funded. Tiered affordability: 5-year (<$15K) or 10-year ($15K-$40K). 80% AMI ceiling. 620 FICO.
  • City of Houston's standard Homebuyer Assistance Program (HAP) is a HOME-funded program providing up to $30,000 in down payment, closing cost, and principal reduction assistance to first-time homebuyers purchasing primary residences within Houston city limits. Structured as a 0% interest deferred forgivable second mortgage. Tiered affordability per HUD HOME 24 CFR 92.254: 5-year (under $15K), 10-year ($15K-$40K). Pairs with FHA, VA, USDA, or conventional 30-year fixed first mortgage. 80% AMI ceiling.
  • Funding comes from Federal.

How much assistance does it provide?

Homebuyer Assistance Program (HAP) offers up to $50,000 in assistance.

  • Buyer contribution: Minimum $1,500 borrower cash contribution from own funds at closing.
  • The program can be combined with other assistance, subject to the rules of each.
  • Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

Homebuyer Assistance Program (HAP) is forgiven after 5 years, so a buyer who stays that long does not repay it.

  • Repayment is triggered by Deferred 0% second mortgage. 5-year affordability for under $15K and 10-year for $15K-$40K per HUD HOME. Sale, refinance with cash-out, transfer, or vacating before period ends triggers repayment of unforgiven balance.
  • The assistance is recorded in 2nd Lien position.
  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Homebuyer Assistance Program (HAP) is open to first-time homebuyers and buyers who will live in the home as their primary residence.

The program requires

  • First-time homebuyer — with exceptions: First-time homebuyer required (no ownership in past 3 years). Veteran exception per HUD rule.
  • The home is occupied as a primary residence
  • On credit: 620 minimum FICO across all products.
  • A completed homebuyer education course, through HUD-approved homebuyer education required (8-hour class). Local providers include Avenue CDC, Covenant Community Capital, NeighborhoodCenters, and Houston Area Urban League.
  • Residency: Property must be located in the City of Houston city limits and occupied as primary residence throughout affordability period.
  • Citizenship or immigration status: U.S. citizen, permanent resident, or qualifying non-permanent resident alien per first-mortgage product overlays.
  • Property must be located in the City of Houston city limits. First-time homebuyer required (no ownership in past 3 years; veteran exception). Household income at or below 80% AMI for Houston-The Woodlands-Sugar Land MSA. Mandatory 8-hour HUD-approved homebuyer education class. Minimum $1,500 borrower contribution. 620 FICO minimum. Property must be a single-family detached, condominium, or townhouse used as primary residence. 30-year fixed-rate first mortgage required.

The program excludes

  • Manufactured homes
  • Households above 80% of area median income

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

Homebuyer Assistance Program (HAP) limits household income to 80% of the area median income, which varies by county and household size.

  • 80% AMI for Houston-The Woodlands-Sugar Land MSA per HUD; 1-person $53,000 / 4-person $75,650 / 8-person $99,950 (2025 limits).
  • The limit applies to total household income, not only the borrower&rsquo;s.
  • Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

Homebuyer Assistance Program (HAP) caps the purchase price as follows: Per HUD HOME 95% area median rule; verify with City at application.

  • Eligible property types include Single-family detached, condominium, townhouse, PUD. Must be primary residence.
  • New construction is eligible.
  • Manufactured homes are not eligible.

Is there eligibility for specific groups?

Homebuyer Assistance Program (HAP) names veterans, active-duty service members, reservists and National Guard members, and surviving spouses among the groups it serves.

  • Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

Where does it apply?

Homebuyer Assistance Program (HAP) serves buyers purchasing in Houston, Texas.

How do you apply?

Applications for Homebuyer Assistance Program (HAP) go through the administering agency, which publishes the current terms and the application steps on its own site.

  1. Take a homebuyer education course

    Required by the program, through HUD-approved homebuyer education required (8-hour class). Local providers include Avenue CDC, Covenant Community Capital, NeighborhoodCenters, and Houston Area Urban League..

  2. Contact the administering agency to reserve funds

    Funds are reserved through Reserved by participating lender through Houston Housing and Community Development. Funds available on first-come, first-served basis subject to annual HUD HOME allocation., and are subject to availability.

  3. Work with a lender who handles the program

    Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.

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