What Is the Harvey Homebuyer Assistance Program 2.0?

If you’re a first-time homebuyer in Houston or someone replacing a home lost during Hurricane Harvey, the Harvey Homebuyer Assistance Program 2.0 (HBAP 2.0) might be the key to making homeownership a reality. This program offers up to $125,000 in financial assistance to eligible buyers, covering costs like the down payment, closing expenses, and mortgage reduction.

Unlike traditional homebuyer loans, HBAP 2.0 is a forgivable loan, meaning you won’t have to pay it back as long as you meet the program’s requirements. This assistance is designed to help make homeownership affordable for those who might otherwise struggle to purchase a home due to financial constraints.

Houston has been committed to rebuilding and strengthening communities in the aftermath of Hurricane Harvey, and this program is a critical part of that effort. If you’ve been considering buying a home but have been worried about the upfront costs, this program can provide the support you need to take that next step.

Key Takeaways:

✔️ Provides up to $125,000 in homebuyer assistance

✔️ Covers down payment, closing costs, and mortgage reduction

✔️ A forgivable loan (as long as you meet residency requirements)

✔️ Available for first-time buyers and Hurricane Harvey-affected homeowners

Next, let’s explore who qualifies for this program and what the eligibility requirements are.

Who Qualifies for the Harvey Homebuyer Assistance Program 2.0?

Before applying for HBAP 2.0, it’s important to understand the eligibility criteria to determine if you qualify for this life-changing assistance. Here’s what you need to know:

1. First-Time Homebuyer or Hurricane Harvey Impacted Homeowners

To qualify, you must be either:

• A first-time homebuyer (someone who has not owned a home in the past three years) or

• A homeowner displaced by Hurricane Harvey, meaning your previous home was damaged or destroyed by the storm.

2. Income Limits Apply

Your household income must fall within the program’s guidelines, which are based on the Area Median Income (AMI) for Houston. Generally, HBAP 2.0 serves households earning up to 120% of the AMI.

Here’s a quick breakdown of the maximum income limits (as of 2025):

• 1-Person Household: $75,200

• 2-Person Household: $86,000

• 3-Person Household: $96,800

• 4-Person Household: $107,600

  
  

Tip: If your income is slightly above these limits, don’t count yourself out just yet! There may be additional programs available, and a certified lender or housing counselor can help explore your options.

3. Property Must Be in Houston City Limits

The home you purchase must be located within Houston city limits. To verify if a property qualifies, you can check the address using the City of Houston’s online property search tool.

4. You Must Complete a Homebuyer Education Course

To ensure buyers are well-prepared for homeownership, the program requires applicants to complete an approved homebuyer education course. This course covers:📌 Budgeting & credit readiness📌 Understanding mortgages & financing📌 Maintaining homeownership successfully

Tip: Many of these courses are available online or in person, making it convenient to fulfill this requirement.

5. You Must Live in the Home

HBAP 2.0 isn’t designed for investment properties or vacation homes. You must:🏡 Use the home as your primary residence📅 Live in the home for at least five years (or longer depending on the loan terms)

Violating these terms could result in having to repay part or all of the assistance received—so it’s important to plan for long-term homeownership!

How Much Assistance Can You Receive?

One of the biggest advantages of the Harvey Homebuyer Assistance Program 2.0 (HBAP 2.0) is the financial support it offers to eligible buyers. This assistance can significantly reduce the upfront costs of buying a home.

Here’s a breakdown of what you could receive:

1. Up to $50,000 in Homebuyer Assistance 

Eligible buyers can receive up to $50,000 to help cover:

• Down payment – Reducing the upfront cost of your home

• Closing costs – Covering lender and title company fees

• Principal reduction – Lowering the overall loan amount

The actual amount of assistance you qualify for depends on:📌 Your household income📌 The price of the home you’re purchasing📌 Your financial need as determined by program guidelines

2. Forgivable Loan Structure

The assistance is not a traditional loan—it is a forgivable loan, meaning:

• You don’t have to repay it if you live in the home for the required period

• The time frame for forgiveness depends on the amount you receive

Example:

• Receive $30,000 or less → Forgiven after 5 years

• Receive $30,001 - $50,000 → Forgiven after 10 years

If you sell, move, or refinance before the required time, you may need to repay part of the assistance based on a sliding scale.

3. Compatible with Other Assistance Programs

HBAP 2.0 can be combined with:

• Lender down payment assistance programs

• State and federal homebuyer assistance grants

• First-time homebuyer programs

This means buyers could stack multiple sources of assistance to maximize affordability!

Example Scenario

Let’s say you’re purchasing a $250,000 home with HBAP 2.0 assistance.

💰 You receive $40,000 in down payment & closing cost assistance

🏦 You secure a low-interest mortgage from an approved lender

📉 Your loan amount is reduced, making your monthly payments more affordable.

With reduced upfront costs and long-term savings, homeownership becomes much more achievable!

How to Apply for the Harvey Homebuyer Assistance Program 2.0?

Now that you know the benefits and financial assistance available, let’s walk through the step-by-step process to apply for the Harvey Homebuyer Assistance Program 2.0 (HBAP 2.0).

Step 1: Determine Your Eligibility

Before applying, make sure you meet the program’s basic requirements:

✔️ First-time homebuyer OR displaced due to Hurricane Harvey

✔️ Household income meets program limits (varies based on household size)

✔️ Purchasing a home within Houston city limits

✔️ Willing to complete homebuyer education

📌 Tip: If you're unsure about eligibility, reach out to an approved program lender or housing counselor for guidance.

Step 2: Get Pre-Approved for a Mortgage

To participate in HBAP 2.0, you must secure a mortgage loan through an approved lender.

• Work with an HBAP 2.0-approved lender

• Complete a loan pre-approval to determine how much home you can afford

• Discuss loan options that align with the assistance program

💡 Why This Step Matters:Your lender will coordinate with the program administrators to ensure your loan is structured properly to receive the down payment and closing cost assistance.

Step 3: Complete Homebuyer Education

As part of the program requirements, all applicants must complete a HUD-approved homebuyer education course.

What You’ll Learn:

✔️ Understanding the homebuying process

✔️ Mortgage basics and loan terms

✔️ Budgeting for homeownership expenses

✔️ Avoiding foreclosure and financial pitfalls

📌 Tip: The course can be taken online or in person, depending on your preference.

Step 4: Find a Home & Submit Your Application

Once you’re pre-approved and have completed homebuyer education, it’s time to:

• Work with a real estate agent to find a home within Houston city limits

• Make an offer and get it accepted by the seller

• Submit your HBAP 2.0 application along with:

✔️ Purchase contract

✔️ Mortgage pre-approval

✔️ Proof of homebuyer education completion

✔️ Income and financial documentation

📌 Important: Your lender and the program administrators will review your application to ensure you meet all requirements before final approval.

Step 5: Close on Your New Home & Receive Assistance

Once your application is approved:

✔️ Funds are applied toward your down payment and closing costs

✔️ You close on your home and receive the keys to your new property

✔️ Your forgivable loan period begins (5-10 years depending on assistance amount)

Life After Closing: Homeownership Responsibilities & Program Requirements

Congratulations! 🎉 You’ve officially closed on your home with the help of the Harvey Homebuyer Assistance Program 2.0 (HBAP 2.0). But homeownership doesn’t stop at closing—there are key responsibilities and program requirements you need to keep in mind.

Understanding the Forgivable Loan Structure

One of the biggest benefits of HBAP 2.0 is that the down payment and closing cost assistance is structured as a forgivable loan. But what does that mean for you?

✔️ If you stay in the home for the required period (5-10 years), the loan is fully forgiven.

✔️ If you sell, refinance, or move out before that period ends, you may have to repay a portion of the assistance.

📌 Tip: Always check with the program administrator before making big financial decisions related to your home.

Maintaining Primary Residence Status

To continue receiving the benefits of HBAP 2.0, you must:

• Live in the home as your primary residence

• Keep up with your mortgage payments, property taxes, and insurance

• Follow any additional program guidelines

💡 Why This Matters: The program is designed to help you become and remain a successful homeowner. If you move out or convert the home into a rental property, you may have to repay the assistance funds.

Staying on Top of Homeownership Costs

Owning a home comes with ongoing financial responsibilities. Here’s how to stay ahead of expenses and protect your investment:

• Mortgage Payments: Pay on time each month to avoid late fees or foreclosure risks.

• Property Taxes: Houston property taxes are assessed annually—set aside funds to cover these costs.

• Homeowners Insurance: Maintain active coverage to protect against damage or losses.

• Home Maintenance: Regular upkeep prevents costly repairs and keeps your home in good condition.

📌 Tip: Create a home maintenance schedule to track seasonal tasks like HVAC servicing, roof inspections, and plumbing checks.

What If You Want to Sell or Refinance?

Life happens—whether it’s a job relocation, family changes, or financial shifts, you might need to sell or refinance before your forgivable loan period is over.

• Selling Before the Loan Is Fully Forgiven?

✔️ You may be required to repay a portion of the assistance based on how long you lived in the home.

✔️ Contact the program administrator before listing your home to understand repayment terms.

• Refinancing Your Mortgage?

✔️ Some refinancing options may trigger repayment obligations.

✔️ Check with an approved lender or program representative before making any decisions.

💡 Bottom Line: Always consult with HBAP 2.0 representatives before making major housing decisions to avoid unexpected costs.

The Key to Long-Term Success: Financial Planning & Support

HBAP 2.0 isn’t just about getting you into a home—it’s about keeping you there successfully. Here’s how to stay financially strong as a homeowner:

✔️ Create an emergency fund for unexpected repairs or financial hardships.

✔️ Track your budget to manage housing costs effectively.

✔️ Continue financial education—many resources offer post-purchase homeowner counseling.

✔️ Stay informed about property values, market trends, and refinancing opportunities.

📌 Pro Tip: Take advantage of homeownership workshops offered by local organizations to boost your financial knowledge.

Making the Most of Your Homeownership Journey

Becoming a homeowner through HBAP 2.0 is an exciting and rewarding milestone! 🎉 With proper financial planning, regular home maintenance, and smart decision-making, you can enjoy all the benefits of homeownership for years to come.

Ready to start your homeownership journey? Let’s connect and make your dream home a reality!

Note: As per the City of Houston's website, applications will open in early April.