Down Payment & Closing Cost Assistance

Helping Homebuyers


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

Application Process

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 counseling class.