McKinney affordable housing is in relatively abundant supply. However, a down payment is often the final obstacle that stands between many people and home ownership. Fortunately for those who find themselves in this position, the City of McKinney Homebuyer Assistance Program can help shoulder the burden of down payments and closing costs.
Down Payment Assistance in McKinney
McKinney’s Homebuyer Assistance Program will provide a five-year loan up to $10,000 at 0% interest to be applied to down payments and nonrecurring closing costs. In addition, this loan is forgivable – meaning the loan does not have to be repaid unless the home is sold, paid off, refinanced, or conveyed in some other way within the five year term. So in McKinney affordable housing can often be more affordable than it seems, and once a buyer has located a home they love, they don’t necessarily need to be held back by a lack of up front cash.
Qualifying for Down Payment Assistance
To qualify for the down payment assistance, applicants must be first time home buyers purchasing a home within the McKinney city limits with the intention of living in that home as their primary residence. It is important to note that to be a first time home buyer, the applicant simply must not have owned a home within the past three years.
Applicants must also be U.S. citizens and qualify for a loan with a private lender. Additional qualifications focus on income levels and debt-to-income ratios. To learn more about how to qualify for the program, please visit the City of McKinney’s page on down payment and closing cost assistance.
Counseling for First Time Home Buyers
Participants in the homebuyer assistance program must enroll in the HUD and City of McKinney approved homebuyer counseling class. This class will take those considering a home purchase through a variety of topics important to understand in the homebuying process, including predatory lending practices, credit, mortgages and inspections.
If you find that you are in need of additional help finding affordable housing in McKinney, find out more about programs offered by the McKinney Housing Authority.