First Time Homebuyers Program

The First Time Homebuyer Program is designed to assist eligible low and moderate income households to buy a home in Plano by providing down payment and closing costs.
  

Who is a First Time Homebuyer?


  • A potential buyer that has not owned a home in the last three years.
  • In some cases, a First Time Homebuyer can be a displaced homemaker.

How does a First Time Homebuyer Qualify for the assistance?

 
  • Total household income must be 80% or less of the area median income (based on HUD's income eligibility guidelines)
  • Must be a U.S. citizen or a permanent resident alien
  • Cash assets must be less than $20,000 (not including retirement accounts)
  • The prospective applicants must have been pre-approved by a lender prior to a face-to-face appointment with a Coordinator.  Documentation of lender pre-approval is required as part of the application submittal documents
  • The homebuyer (s) whose name appears as owner (s) of the property must have a credit score of at least 620
  • Maximum housing ratio is 36% and maximum debt-to-income ratio is 45%. Ratios will be determined by mortgage lender underwriting criteria and definition of income
  • Must attend an 8 hour First Time Homebuyer class held by the City
  • Must be approved by an in-house underwriting process
  • The buyer may Not receive any cash back at closing
  • The homebuyer shall authorize the City of Plano to collect and receive any information needed from the lender or other sources necessary to ensure eligibility and funding. Buyers shall authorize the City to be provided the appraisal report, Uniform Residential Loan Application (Form 1003), the Loan Estimate, and the Closing Disclosure
  • Complete the First Time Home Buyers Application. (Fillable PDF)

Current HUD Income Limits

 
 Family Size 1 -person 2-person 3-person 4-person 5-person 6-person 7-person 8-person
 Income Limits $41,100 $47,000 $52,850 $58,700 $63,400 $68,100 $72,800 $77,500
                                                    Income limits are subject to change at any time.

What Properties are eligible for the program?

  • Properties located in the city limits of Plano.
  • Lender-approved insurable properties, new or pre-owned single family residences, condos, and town homes.
  • Properties that meet local building inspections codes and that are free from hazardous living conditions.
  • Properties that meet federal EPA regulations, including lead based paint testing, and federal relocation regulations. 

HOME Homeownership Value Limits


The effective date of the 2017 Homeownership Value Limits is March 1, 2017.  These limits remain in effect until HUD issues new limits.
 1-Unit 2-Unit  3-Unit  4-Unit
 $230,000  $294,000  $356,000  $441,000

Required Homebuyer Class


  • All applicants, spouses and any other person whose income is used to qualify for the mortgage must attend the 8 hour Homebuyer Education class.
  • Instructors are certified by the Texas State Affordable Housing Corporation and sponsored by the City of Plano, the City of McKinney, and the City of Frisco. However, the down payment assistance must be applied for and come from the city in which the home is located. 
  • The class is held on the 3rd Saturday of each month (January-November) from 8:30 to 4:30.
  • The address for the class is 7501-A Independence Parkway, Plano, TX 75025.
  • Click here to register for the Homebuyer Education Class 
Note: The City of Plano Promotes Equal Housing Opportunities in accordance with the Federal Fair Housing Law