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Homebuyer Programs in McKinney, TX (2026)

Last updated April 6, 2026 | Population: 215,000 | Median home price: $510,000 | Est. closing costs: $10,000 - $15,500

Skyline of McKinney, TX

McKinney is one of the fastest-growing cities in Collin County and the Dallas-Fort Worth metroplex, with a population of approximately 215,000 and a median home price around $510,000. The City of McKinney Homebuyer Assistance Program provides up to $10,000 as a forgivable loan for income-eligible first-time buyers purchasing within city limits. McKinney also offers an additional $5,000 in bonus gift funds through the McKinney Housing Finance Corporation for buyers using TDHCA loan programs. Texas state programs through TSAHC and TDHCA add 3% to 5% of the loan amount in grants, and Habitat for Humanity of Collin County provides affordable homeownership for qualifying families. By stacking city and state programs, eligible buyers in McKinney can access significant assistance toward their home purchase.

Top Homebuyer Programs in McKinney

City of McKinney Homebuyer Assistance Program
Type:
Forgivable Loan
Amount:
Up to $10,000
First-time only:
Yes
McKinney Housing Finance Corporation Bonus Gift Funds
Type:
Grant
Amount:
$5,000
First-time only:
No
FHA Loans
Type:
Government-Insured Mortgage
Amount:
Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026)
First-time only:
No
FHLBA Community Partners Product
Type:
Forgivable Loan
Amount:
Up to $20,000 in home purchase assistance for down payment and closing costs
First-time only:
No
FHLBA First Time Homebuyer Product
Type:
Forgivable Loan
Amount:
Up to $17,500 in home purchase assistance for down payment and closing costs
First-time only:
Yes
FHLBA Workforce Housing Plus+
Type:
Forgivable Loan
Amount:
Up to $15,000 in home purchase assistance for down payment and closing costs
First-time only:
No
Good Neighbor Next Door (HUD)
Type:
Government Property Sale Program
Amount:
50% discount off the list price of HUD-owned homes
First-time only:
Yes
Home Possible Mortgage (Freddie Mac)
Type:
Government-Guaranteed Mortgage
Amount:
Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
First-time only:
No
HomeReady Mortgage (Fannie Mae)
Type:
Government-Guaranteed Mortgage
Amount:
Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
First-time only:
No
HUD $100 Down Program
Type:
FHA-Financed HUD REO Purchase
Amount:
Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs.
First-time only:
No
USDA Rural Development Loans
Type:
Government-Guaranteed Mortgage
Amount:
100% financing (no down payment required); loan amount up to appraised value
First-time only:
No
VA Loans
Type:
Government-Guaranteed Mortgage
Amount:
No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026)
First-time only:
No
Habitat for Humanity of Collin County Homeownership Program
Type:
Zero-Interest Loan
Amount:
Affordable home purchase at no profit with 0% interest mortgage
First-time only:
No
NDBT HomeStart Program
Type:
Grant
Amount:
$2,500 closing cost credit plus no PMI
First-time only:
No
Home Sweet Texas Home Loan Program
Type:
Grant
Amount:
Up to 5% of the total loan amount
First-time only:
No
Homes for Texas Heroes Program
Type:
Grant
Amount:
Up to 5% of the loan amount (between 3% and 5%)
First-time only:
No
My First Texas Home
Type:
Forgivable Loan
Amount:
Up to 5% of the first lien mortgage amount
First-time only:
Yes
SETH 5 Star Texas Advantage Program
Type:
Forgivable Loan
Amount:
Up to 5% of the loan amount
First-time only:
No

How to Apply

  1. Step 1:

    Check your eligibility. The City of McKinney Homebuyer Assistance Program requires household income at or below 80% of the Area Median Income. You must be a first-time homebuyer, meaning you have not owned a home in the last three years. The home must be within McKinney city limits.

  2. Step 2:

    Complete homebuyer education. You must complete a HUD and City of McKinney-approved homebuyer class before applying. TDHCA also offers free online homebuyer education courses.

  3. Step 3:

    Contact the McKinney Housing and Community Development Department to learn about current funding availability and get your application. Applications must be submitted at least 45 days prior to your expected closing date.

  4. Step 4:

    Get pre-approved for a mortgage. Work with a TDHCA participating lender to explore state-level down payment assistance of 3% to 5% of your loan amount. If you use a TDHCA DPA reservation for a home in McKinney, you may qualify for an additional $5,000 in bonus gift funds from the McKinney Housing Finance Corporation.

  5. Step 5:

    Find a home within McKinney city limits. State programs may have separate purchase price limits based on Collin County guidelines.

  6. Step 6:

    Submit your application with all required documentation to the Housing Services Office. Processing times vary based on funding availability.

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