See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated April 6, 2026
Homebuyer Programs in McKinney, TX (2026)
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.
City Programs in McKinney
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| City of McKinney Homebuyer Assistance Program | Forgivable Loan | Up to $10,000 | Yes | View → |
| McKinney Housing Finance Corporation Bonus Gift Funds | Grant | $5,000 | No | View → |
- Type:
- Forgivable Loan
- Amount:
- Up to $10,000
- First-time only:
- Yes
- Type:
- Grant
- Amount:
- $5,000
- First-time only:
- No
State Programs in Texas
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Home Sweet Texas Home Loan Program | Grant | 2%, 3%, 4% or 5% of the total loan amount (borrower chooses); grant on FHA/VA/USDA loans or 0% 3-year forgivable second lien | No | View → |
| Homes for Texas Heroes Program | Grant | Up to 5% of the loan amount (between 3% and 5%) | No | View → |
| My First Texas Home | Forgivable Loan | Up to 5% of the first lien mortgage amount | Yes | View → |
| SETH 5 Star Texas Advantage Program | Forgivable Loan | Up to 5% of the loan amount | No | View → |
- Type:
- Grant
- Amount:
- 2%, 3%, 4% or 5% of the total loan amount (borrower chooses); grant on FHA/VA/USDA loans or 0% 3-year forgivable second lien
- First-time only:
- No
- Type:
- Grant
- Amount:
- Up to 5% of the loan amount (between 3% and 5%)
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Up to 5% of the first lien mortgage amount
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Up to 5% of the loan amount
- First-time only:
- No
Federal Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| FHA Loans | Government-Insured Mortgage | Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026) | No | View → |
| Good Neighbor Next Door (HUD) | Government Property Sale Program | 50% discount off the list price of HUD-owned homes | Yes | View → |
| Home Possible Mortgage (Freddie Mac) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HomeReady Mortgage (Fannie Mae) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HUD $100 Down Program | FHA-Financed HUD REO Purchase | Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs. | No | View → |
| USDA Rural Development Loans | Government-Guaranteed Mortgage | 100% financing (no down payment required); loan amount up to appraised value | No | View → |
| VA Loans | Government-Guaranteed Mortgage | No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026) | No | View → |
- 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
- Type:
- Government Property Sale Program
- Amount:
- 50% discount off the list price of HUD-owned homes
- First-time only:
- Yes
- 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
- 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
- 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
- Type:
- Government-Guaranteed Mortgage
- Amount:
- 100% financing (no down payment required); loan amount up to appraised value
- First-time only:
- No
- 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
Nonprofit Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Habitat for Humanity of Collin County Homeownership Program | Zero-Interest Loan | Affordable home purchase at no profit with 0% interest mortgage | No | View → |
| NDBT HomeStart Program | Grant | $2,500 closing cost credit plus no PMI | No | View → |
- Type:
- Zero-Interest Loan
- Amount:
- Affordable home purchase at no profit with 0% interest mortgage
- First-time only:
- No
- Type:
- Grant
- Amount:
- $2,500 closing cost credit plus no PMI
- First-time only:
- No
How to Apply
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.
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.
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.
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.
Step 5: Find a home within McKinney city limits. State programs may have separate purchase price limits based on Collin County guidelines.
Step 6: Submit your application with all required documentation to the Housing Services Office. Processing times vary based on funding availability.
Frequently Asked Questions
How much down payment assistance can I get in McKinney?+−
Do I have to be a first-time homebuyer?+−
What is the maximum home price for DPA programs in McKinney?+−
What homebuyer education is required?+−
What are the McKinney HFC Bonus Gift Funds?+−
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