City of McKinney Homebuyer Assistance Bonus Gift Dollars

Many low-to-moderate income homebuyers in Texas are eligible for down payment assistance through My First Texas Home, which is a program of the Texas Department of Housing and Community Affairs (TDHCA). This is a fully forgivable lien to help you make a down payment on your first home. 

If you purchase a home in McKinney using the My First Texas Home Program, the city offers an additional $5,000 in Bonus Gift Dollars. 

You can use this additional money to make a larger down payment or cover closing costs. These Bonus Gift Dollars don’t need to be repaid.

Eligibility requirements

To qualify for the City of McKinney Homebuyer Assistance Bonus Gift Dollars, you must meet the following eligibility requirements:

1. You must either: A) qualify as a first-time homebuyer, meaning you haven’t owned or purchased a home within the past three years or B) qualify as a veteran.
2. The property must be within the McKinney city limits.
3. You’ll need a credit (FICO) score of 620 or higher.
4. This must also participate in the TDHCA My First Texas Home Down Payment Assistance Lien program. 
5. Your income must be at or below the program threshold, which is currently between $103,100 and $118,565, depending on your household size. 
6. The home’s final purchase price must be below either $541,594 or $693,328 depending on the number of units. 

Type of assistance

This assistance is gifted. Once you receive the money, there are no further strings attached. You do not have to repay any of the funds. 

(Note: This is true only for the McKinney Bonus Gift Dollars. The My First Texas Home Down Payment Assistance Lien does have requirements that must be met after you receive the money.)

Amount of down payment assistance

Eligible homebuyers can receive $5,000 in assistance. This is above and beyond what you receive through My First Texas Home. 

Minimum borrower contribution

You don’t need to put up any of your own money to qualify for this program. This is especially good if you don’t have much saved for initial expenses.

Purchase price limits

To qualify for the McKinney Bonus Gift Dollars, your home’s total purchase price must be below the program threshold. Currently, this threshold is:

• For one unit: Up to $541,594
• For two units: Up to $693,328

Income limits

The income limits for this down payment assistance program depend on your household size. 

• For households of 1 or 2 people: At or below 100% AMI (currently $103,100).
• For households of three or more: At or below 115% AMI (currently $118,565). 

Program income limits and purchase price limits are often evaluated and adjusted to match the current housing market and economic factors. Use our free down payment assistance finder to see if your income qualifies you for this program.

How to qualify for the City of McKinney Homebuyer Assistance Bonus Dollars

To be eligible for this down payment assistance program, you must meet the requirements we’ve explained in this article. Use our free down payment assistance finder to see if you qualify.

How to apply for the City of McKinney Homebuyer Assistance Bonus Dollars

To sign up for the City of McKinney Homebuyer Assistance Bonus Dollars, you must apply through a participating lender. The city of McKinney doesn’t take applications directly. Use our free down payment assistance finder to find a participating lender who can help you apply.