The City of Plano’s First-Time Homebuyers Program

The City of Plano’s First-Time Homebuyers Program helps low to moderate income homebuyers purchase a home within Plano city limits. The program offers down payment assistance that can be used to make a larger down payment and cover closing costs to help lower your upfront costs and long-term housing expenses.

Eligibility requirements

To qualify for the City of Plano’s First-Time Homebuyers Program, you must meet the following eligibility requirements:

1. You must be a first-time homebuyer, meaning you haven’t purchased or owned a home within the past three years.
2. The property must be within the Plano city limits.
3. You need a credit (FICO) score of 620 or higher.
4. The home you’re purchasing must be priced at $418,000 or less.
5. Your income must be at or below 80% of the area median income(AMI).
6. Your mortgage payments must not exceed a certain percentage of your income, based on your credit score.

• If your credit score is 620-699: Mortgage payments can be no more than 31% of your monthly income.
• If your credit score is 700 or higher: Mortgage payments can be no more than 36% of your monthly income, as long as you also have three month’s worth of mortgage payments in reserve. 

*For all DPA programs, income and purchase price limits are regularly reviewed and updated. These amounts were correct at publication but may change with time.

Type of loan

The City of Plano’s First-Time Homebuyers Program has two loan options. Each option is from a different funding source and has slightly different parameters.

Loan Option 1: Community Development Block Grant (CDBG) funding 

This is a loan for up to $10,000 in assistance. The loan is eligible for forgiveness after five years, meaning you don’t have to repay the money as long as you make your monthly mortgage payments on time and live in the house without selling, refinancing, or renting it out during the forgiveness period. 

Loan Option 2: Home Investment Partnerships Program (HOME) funding

This is a loan for up to $55,000 in assistance. The money is eligible for forgiveness after 15 years. The forgiveness requirements are the same as for Option 1, but the timeline is longer. 

For both options, the loan accrues no interest during the forgiveness period and your obligation to repay the loan is removed if you meet the forgiveness criteria.

Amount of down payment assistance

The City of Plano’s First-Time Homebuyers Program offers a higher loan maximum if you have a lower income. 

Loan Option 1, CDBG funding:

• Income at or below 80% AMI: Up to $10,000 in assistance

Loan Option 2, HOME funding:

• Income 60.01% to 80% AMI: Up to $45,000 in assistance 
• Income at or below 60% AMI: Up to $55,000 in assistance

Minimum borrower contribution

To qualify for this program, you must contribute at least $1,000 toward your down payment or closing costs. Gifted funds can be used for up to $500 of this minimum contribution. You must contribute the remaining $500 from your own funds. 

Purchase price limits

With either loan option, the maximum purchase price limit is $418,000.

Income limits

To qualify for this program, your income needs to be 80% of area median income or lower, and your liquid assets must be less than $36,000 not including retirement accounts.

Program income limits are often evaluated and updated. To find out if you qualify based on your income, use our free down payment assistance finder.

How to qualify for the City of Plano’s First-Time Homebuyers Program

You must meet the criteria outlined above to be eligible for this down payment assistance program. Use our free down payment assistance finder to find out if you’re eligible.

How to apply for the City of Plano’s First-Time Homebuyers Program

Applications for the City of Plano’s First-Time Homebuyers Program are accepted solely through approved and participating mortgage lenders. Direct applications to the City of Plano are not accepted. Use our free down payment assistance finder to find a lender who can help you submit your application.