City of McKinney Homebuyer Assistance Program
Down Payment Assistance
The City of McKinney Homebuyer Assistance Program is funded by the HOME Investment Partnerships Program.This allows the City of McKinney to provide down payment and closing cost assistance to low-to-moderate-income first-time homebuyers. Qualified homebuyers must be purchasing a home located in McKinney, TX. The assistance awarded by the City of McKinney Homebuyer Assistance Program can total up to $10,000 as a 0% interest 5-year forgivable loan. As previously mentioned, the awarded loan is used for the borrower’s down payment and non-recurring closing costs associated with the purchase of the new home. The loan is only repayable if you refinance, pay off the first mortgage, sell or otherwise convey title to the property within the 5-year period.
To qualify for the City of McKinney Homebuyer Assistance Program, homebuyers must meet the following requirements:
- Applicants must be a first-time homebuyer. A first-time homebuyer is an individual or household who has not owned a home in the last three years or is a displaced homemaker.
- Homebuyers must be able to provide proof of U.S. citizenship or permanent legal resident alien status.
- Homebuyers must possess the ability to qualify for a mortgage loan with a private lender.
- The applicant’s debt-to-income ratio (“back-end ratio”) may not exceed 45%.
- The applicant’s housing ratio (“front-end ratio”) must be at least 25%.
- The homebuyer must reside in the home as their principal / primary residence.
- The purchased home must be located within the city limits of McKinney, Texas.
- The homebuyer’s income may not exceed 80% of the Area Median Income.
- The applicant must complete an HUD and City of McKinney approved homebuyer counseling class.
- First, the homebuyer should contact a private lender of their choice.
- The homebuyer then signs an accepted real estate purchase contract with the Seller. Please note, proof of Earnest Money paid must be included.
- Next, the homebuyer needs to complete and deliver a Homebuyer Assistance Program Application along with all of the other required documentation to the McKinney Housing Services Office. Completed applications must be received by the Housing Services Office at least 45 days before the expected closing.
- Only completed applications will be considered. Within 5 business days of receipt of an incomplete application, notice will be sent to the homebuyer detailing items still outstanding. Applications that are still incomplete 30 days after initial submission will be denied.
If you would like to find out if you qualify, click the link to print an Application.
Submission of the Application does not automatically qualify you for assistance under the program. It is the applicant’s responsibility to make arrangements for the home purchase should it be determined by the McKinney Housing Services Office that the applicant does not meet program guidelines.
If you have any additional questions regarding home mortgages, please contact a mortgage expert by filling out the form on the right or calling (512) 524-8077. You can also email Team@CandyBuzan.com.