First-Time Homebuyer Programs McKinney TX 2026: Down Payment Help, FHA, and TSAHC Grants

I'm Bond Peter Njoku (NMLS #2670329) and I help first-time buyers close on homes in McKinney every month. McKinney ISD is rated A by the Texas Education Agency, the historic downtown is one of the most walkable in North Texas, and Collin County's job market continues to pull relocating families from across the country. Median home prices in McKinney run between $420,000 and $500,000 — higher than the statewide average, but the 2026 FHA loan limit covers purchases up to $563,500, and Collin County's DPA income limit of $119,700 means most two-income households still qualify for grant assistance. The first step is knowing what you actually qualify for before you start touring homes.

What first-time homebuyer programs are available in McKinney TX in 2026?

McKinney buyers have access to two major state programs, and I typically stack them to minimize what my clients bring to closing.

TSAHC Home Sweet Texas provides a grant of 3–5% of the loan amount. This is real grant money — no repayment, no second lien, ever. On a $430,000 purchase with FHA (3.5% down = $15,050), a 5% TSAHC grant of $21,500 fully covers your down payment and puts money toward closing costs. The program requires a 620 credit score and gross household income at or below the Collin County limit of $119,700.

TDHCA My First Texas Home provides up to 5% as a deferred-payment second loan, forgiven at year 3 if you remain in the home. It pairs with FHA, conventional, or VA loans. Income limit is the same $119,700 for Collin County, and the minimum credit score is 620.

Both programs can be used with FHA loans at a 3.5% down payment. With TSAHC's 5% grant on an FHA loan, many McKinney first-time buyers owe only closing costs at the table — typically $6,000–$9,000 — rather than a down payment.

How do the loan options compare for McKinney first-time buyers?

Most McKinney first-time buyers with a 580–679 FICO start with FHA. Buyers at 680+ who want PMI to eventually drop off often prefer conventional. Active duty or veterans should look at VA — zero down, no monthly MIP, and no income limit for the DPA programs (VA buyers typically don't need DPA since they're already at zero down).

What will my mortgage payment be on a McKinney home?

At the current McKinney median of roughly $450,000, here's what a 5% down FHA purchase looks like at a 7.0% rate on a 30-year fixed:

• Purchase price: $450,000
• Down payment (5%): $22,500
• Loan amount: $427,500
• Principal & interest: approximately $2,845/month
• FHA annual MIP (0.55%): approximately $196/month
• Collin County property taxes (~1.5%): approximately $563/month
• Homeowners insurance: approximately $150/month
• Total PITI: approximately $3,754/month

If you stack a TSAHC 5% grant ($22,500), your out-of-pocket drops to $0 on the down payment. You'd still owe estimated closing costs of $7,000–$9,500, which you can negotiate to have the seller pay up to 6% with FHA.

Do I qualify for down payment assistance in McKinney TX?

The two income thresholds to know for Collin County DPA programs in 2026:

• TSAHC Home Sweet Texas: $119,700 gross household income (1–4 people)
• TDHCA My First Texas Home: $119,700 gross household income (1–4 people)

Most McKinney first-time buyers I work with are dual-income households earning $80,000–$115,000 combined — well within the limit. Even if you've owned a home before, TSAHC has no first-time buyer requirement (TDHCA does, unless you're a veteran).

Last spring I helped a McKinney couple — both working in the Legacy Business District — with a combined income of $108,000 and a $435,000 purchase price. Their 640 FICO qualified them for FHA, and we layered TSAHC's 5% grant to eliminate the $15,225 down payment. They brought $7,800 to closing (after seller credits of $8,000) and moved in within 35 days of ratified contract.

What credit score do McKinney first-time buyers need in 2026?

The minimum credit scores for the most common McKinney loan programs:

If your score is 580–619, you can still use FHA at 3.5% down but won't qualify for TSAHC's grant. In that range, I often help clients do a 60–90 day credit optimization to clear a few items and hit 620, which then unlocks grant money that far outweighs the cost of waiting.

How do I actually get started buying a home in McKinney?

Here's the process I walk every McKinney first-time buyer through:

1. Pre-approval call (15 minutes): I pull soft credit, review income and assets, and tell you exactly which programs you qualify for — same day.
2. Formal pre-approval letter (1–2 business days): This is what you give your realtor to write offers. McKinney is competitive — offers without letters get ignored.
3. Home search (2–8 weeks): Most McKinney buyers find something in 30–60 days. I stay available throughout so we can re-underwrite quickly if you find something at a different price point.
4. Under contract to close (30–45 days): Conventional is typically 30 days; FHA with DPA runs 35–45 days. I coordinate directly with the title company and keep your realtor updated at every milestone.

The biggest mistake I see McKinney first-time buyers make is waiting until they find a house to call a lender. In Collin County's market, you need that pre-approval letter before you make an offer — and ideally before you start touring so you're not falling in love with a home above your range.