Short answer: There is no nationwide $25,000 government grant for first-time homebuyers. That idea comes from a bill in Congress called the Downpayment Toward Equity Act, and it has not become law. But Texas buyers can find real grants of up to $25,000, mainly through the FHLB Dallas HELP program, and local programs in Houston and Harris County can offer even more.

Where the "$25,000 grant" idea comes from

The Downpayment Toward Equity Act would give up to $25,000 to first-generation homebuyers, meaning buyers whose parents didn't own a home, with incomes up to 120% of the area median. It has been introduced in Congress more than once, but as of 2026 it has not passed. You'll see ads and social posts that make it sound available today. It isn't.

Watch out for scams. No legitimate program will ask you to pay a fee to "claim" a grant. Real assistance goes through approved lenders and official agencies.

A real $25,000 grant in Texas: FHLB Dallas HELP

The Federal Home Loan Bank of Dallas runs the Homebuyer Equity Leverage Partnership (HELP) program. It provides:

• Up to $25,000 for homes in Texas, to be used toward down payment and closing costs
• Who qualifies: First-time buyers with household income at or below 80% of the area median income
• Requirements: Complete a homebuyer counseling program and put in at least $500 of your own money
• How to apply: Through a participating FHLB Dallas member bank or lender, who applies on your behalf

The catch: HELP money is released in funding rounds during the year, and it goes fast. As of mid-September 2026, the program's 2026 funds showed as fully used. If you're planning to buy in 2027, talk to a participating lender early so you're ready when new funds open.

Houston-area programs that can be worth even more

• City of Houston Homebuyer Assistance Program (HAP): Up to $50,000 under recent guidelines for income-qualified buyers inside Houston city limits
• Harris County Down Payment Assistance: Up to $40,000 for homes in unincorporated Harris County

These are usually forgivable loans rather than outright grants. If you stay in the home for the required time, you typically don't repay them. Learn more in our guide to Houston first-time homebuyer assistance.

Statewide help: 2% to 5% of your loan

Texas programs from TDHCA and TSAHC offer 2% to 5% of your loan amount for down payment and closing costs. On a $300,000 home, that's roughly $6,000 to $15,000. Some of this help comes as a grant. See Texas first-time home buyer programs explained.

Grant vs. forgivable loan vs. repayable loan

• Grant: Free money you never repay.
• Forgivable loan: You don't repay it if you live in the home for a set number of years. If you sell or move early, you may owe some or all of it.
• Deferred loan: Often 0% interest. You repay it when you sell, refinance or pay off the mortgage.

All three can help you buy sooner. Just know which one you're getting.

How to find out what you qualify for

1. Know your household income and credit score.
2. Take a homebuyer education course. Most programs require one.
3. Talk to a lender who works with assistance programs. They can check every program you qualify for at once.
4. Work with an agent who knows the location and price limits for each program.

Start your home search

Search homes for sale in Houston and surrounding cities and see what fits your budget with assistance.

Program details and funding change often. Confirm current availability and requirements with the program or a participating lender before you rely on any assistance.