The City of McKinney Down Payment Assistance Program

HOME Investment Partnerships Program Grant Funds City of McKinney Down Payment Assistance Program

The City of McKinney Down Payment Assistance Program provides down payment and closing cost assistance to low-to-moderate-income first-time homebuyers within the City of McKinney. Assistance is provided in the form of up to $7,500 as a 0% interest 5-year forgivable loan for down payment and non-recurring closing costs associated with the purchase of the new home. The loan is repayable only if you refinance, pay off the first mortgage, sell or otherwise convey title to the property within the 5-year period.

These funds are made available through a grant from the Texas Department of Housing & Community Affairs' HOME Investment Partnership Program.

You are Eligible if:

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.
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.
The home does not cost more than $132,000
You complete a HUD and City of McKinney approved homebuyer counseling workshop.

Application Process:

The buyer contacts a private lender of their choice.
The buyer signs an accepted real estate purchase contract with the Seller. Proof of Earnest Money paid must be included.
The buyer completes and delivers a Down Payment Assistance Program Application together with all required documentation to the McKinney Housing Services Office. Completed applications must be received by the Housing Services Office no later than 30 days prior to expected closing on the property.
Only completed applications will be considered. Within 5 business days of receipt of an incomplete application, a letter will be sent to the homebuyer detailing items still outstanding. Applications that are still incomplete 14 days after initial submission will be returned to the homebuyer.

If you would like to find out if you qualify, click the link to print an Application.

Please 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 Office that the applicant does not meet program guidelines.

If you are interested in applying for the City of McKinney Down Payment Assistance Program please click on the link below to obtain more information or contact us at cpruneda@mckinneytexas.org .