Downpayment Assistance Program (DAP)

Downpayment Assistance Program provides financial assistance in the form of deferred, forgivable loan to eligible first time homebuyers for down payment and closing costs for the purchase of new and pre-owned homes (built within the last 10 years).  Assistance up to $14,400 is available to eligible homebuyers for the purchase of homes.  The City of Houston (City), Harris County and Fort Bend County have designed the Homebuyer Assistance Program to provide financial assistance to low-to-moderate income homebuyers in the incorporated area of the City.

• HCDD staff will administer the HAP according to the policy and procedures set forth in the administrative guidelines.
• Funding for DAP will be available through the HOME Investment Partnerships (HOME) Program, the Community Development Block Grant (CDBG) Program, the American Dream Down Payment Initiative (ADDI) and Tax Increment Reinvestment Zone (TIRZ).
• DAP will provide direct financial assistance to offset portions of the down payment, closing costs, pre-paid items and principal required for home purchase.

Steps to Home Ownership

• To begin the DAP process, all applicants must obtain a homebuyer certificate from a HUD approved homebuyer education course provider and select an approved mortgage company. To get started click here
• Once you qualify for a first mortgage, and you have found a house that you would like to purchase, the Mortgage Company will forward your documentation to the Lending Services Department for processing.
• When your file is received by Lending Services, we will schedule you for an interview to determine your final eligibility.

Assistance Amounts

- $14,200 for new construction
- $9,500 for pre-owned homes, built within the last 10 years
- $14,400 for disabled borrowers for new or pre-owned homes

Please read the information below to help you determine if you are a qualified applicant for the program:

• Buyer must be first-time home buyer
• The applicant must demonstrate the ability to obtain a mortgage loan (financial, credit worthiness, etc.)
• The family’s combined income must be at or below 80% of the area median income
• The applicant must complete at least eight (8) hours of homebuyer education from any participating HUD-approved Housing Counseling Agency.
• The sales price for the property cannot exceed the Single Family Mortgage Limits under Section 203(b) of the National Housing Act ($271,050).
• The property must be located in the taxing jurisdiction of the City of Houston. Harris or Fort Bend County. The applicant must purchase a new or existing home. The following structures are approved for
  • DAP:
     Single-family property (detached and attached 1-4 units)
     Condominium unit/Townhouse
     Modular home/Manufactured home
     Cooperative unit
• County Inspection Services Section is required to conduct an independent physical inspection on the property. Despite County inspector completing a physical inspection of the property, it is highly encouraged that the potential homebuyer gets his/her own TREC inspection
• The applicant must invest at least $350 into the home buying transaction (i.e. earnest money, appraisal, etc.)
• The applicant must live in the home for 5 to 10 years for assistance to be forgiven

Applicant(s) combined annual household income must be at or below the amounts listed in the Household Income Limits to qualify for DAP funds.

To get started now click here