Down Payment & Closing Cost Assistance

City of McKinney Program

The City of McKinney Homebuyer Assistance Program provides down payment and closing cost assistance to low-to-moderate-income first-time homebuyers.

  • Assistance provided up to $10,000 as a 0% interest five-year forgivable loan for down payment and non-recurring closing costs associated with the purchase of the new home.
  • Loan is repayable only if you refinance, pay off the first mortgage, sell or otherwise convey title to the property within the five-year period.

You may be eligible if you meet the following qualifications:

  • You are 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.
  • You are able to provide proof of U.S. citizenship or permanent legal resident alien status.
  • You are able to qualify for a mortgage loan with a private lender.
  • The debt-to-income ratio (“back-end ratio”) may not exceed 45%.
  • The housing ratio ("front-end ratio") must be at least 20%.
  • You will reside in the home as your principal residence.
  • The home is located within the city limits of McKinney, Texas.
  • Your income does not exceed 80% of the Area Median Income.
  • You complete a HUD and City of McKinney-approved homebuyer class. Some classes charge a fee. Register or Sign in and select a class

Application Process

Down Payment and Closing Cost Assistance

  1. The buyer contacts a private lender of their choice.
  2. The buyer signs an accepted real estate purchase contract with the seller. Proof of earnest money paid must be included.
  3. The buyer completes Homebuyer Assistance Program Application with all required documentation to the McKinney Housing and Community Development Department. Completed applications must be received by the Housing Services Office no later than 45 days prior to the expected closing on the property.
  4. Only completed applications will be considered. Within five 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.

Note: 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 that the applicant does not meet program guidelines.

Questions? Email or call  972-547-7519.