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City of McKinney Down Payment Assistance Program and Mortgage Credit Certificate

City of McKinney Website
McKinney PrimeLending Mortgage

Program Overview

City of McKinney Downpayment Assistance Program is a program that provides down payment and closing costs assistance to low-to-moderate-income first-time homebuyers within the City of McKinney. Property must be located in the city of McKinney.

Who is eligible for this program?

Borrowers must be first-time homebuyers. A first-time homebuyer is an individual or household who has not owned a home in the last three years or is a displaced homemaker. Borrowers must also be able to provide proof of U.S. citizenship or permanent legal resident alien status, be able to qualify for a mortgage loan with a private lender, and must reside in the home as a principal residence.
Funds may be used for down payment and non-recurring closing costs associated with the purchase of the new home.
Household Income Limit: $0

Is this program for first time buyers only?


Property Eligibility Requirements

The sales price cannot exceed $ 132,000.

Benefit Details

The loan is repayable only if the borrower refinances, pays off the first mortgage, sells or otherwise conveys title to the property within the five-year period.
Maximum assistance is $7,500.

Benefit: No interest five-year forgivable loan of up to $7,500.
Loan Term: 5 years
Homebuyer Counseling /
Education Required:
Owner Occupancy Required: Yes
Other Program Comments: Applicants must sign an accepted real estate purchase contract with the seller of the property. Proof of earnest money paid must be included with the application.



A MCC will reduce the amount of federal income tax homeowners pay, thus giving them more available income to qualify for a mortgage. With a MCC, the qualified homebuyer is eligible to write off a portion of the annual interest paid on the mortgage as a special tax credit not to exceed $2,000 each year that they occupy the home as their principal residence. The portion or amount of the tax credit is equal to the mortgage credit rate on the MCC multiplied by the annual interest paid. This credit reduces the federal income taxes of the buyer, resulting in an increase in the buyer’s net earnings. Increased buyer income results in increased buyer capacity to qualify for the mortgage loan. The MCC has the potential of saving the MCC holder thousands of dollars over the life of the loan.
While all homeowners can claim an itemized tax deduction for mortgage interest, you can go a step further with an MCC. An MCC reduces your tax liability, dollar-for-dollar, by a percentage of the mortgage interest you pay.

Two main benefits to the homebuyer:

  • Provides a tax credit up to $2,000 a year as long as the homebuyers occupies the home and has a mortgage.

  • Can help qualify the homebuyer for a loan by increasing their income by the tax credit amount.

How a Homebuyer Qualifies:

  • Homebuyer must purchase a home within the City of McKinney.

  • Homebuyer could not have owned a home in the last three years as their primary residence unless they are a qualified veteran.

  • Homebuyer’s household income must not exceed the maximum limits set by the Program below: 
    $68,300 for 1 – 2 occupants
    $78,545 for 3 or more occupants

  • The purchase price can not exceed $258,691.

  • Homebuyer must occupy the home as their principal residence.

Cost for the MCC Program is $100 MCC Application Fee, $250 Closing Package Review Fee and 1.00% MCC Issuance Fee. The fees can be paid by buyer, seller, lender, rolled into the loan.
Can be stacked with city downpayment assistance program. click link for information.
To contact a loan expert, use the contact form to the right or call (800) 308-8503.








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