TSAHC My First Texas Home in McKinney, TX (2026 Guide)

I'm Bond Peter Njoku, a licensed Mortgage Loan Officer (NMLS #2670329), and My First Texas Home is one of the two programs I bring up in almost every first conversation with a McKinney first-time buyer. It's run by the Texas Department of Housing and Community Affairs (TDHCA), and unlike a grant, it's structured as a deferred second lien — meaning the money genuinely helps you close, but it comes with rules about how long you need to stay in the home. Most of my McKinney clients find those rules easy to live with once I walk through the numbers with them.

How My First Texas Home Actually Works

The program provides up to 5% of your loan amount toward your down payment and closing costs. It's not a grant — it's a zero-interest second mortgage that sits behind your primary loan. If you stay in the home and keep it as your primary residence, the balance is forgiven in full after three years. Sell or refinance before that window closes, and you'd repay the assistance amount from your proceeds. For most McKinney buyers I work with who are planning to stay put for at least a few years, that structure works out fine.

Why McKinney Buyers Qualify More Easily Than You'd Think

McKinney sits in Collin County, where the 2026 income limit for TDHCA-backed assistance runs around $119,700 for a smaller household — notably higher than the roughly $97,200 limit in Dallas or Tarrant County. I've had dual-income McKinney households earning $110,000 combined assume they'd be disqualified, only to find out they clear the Collin County threshold with room to spare. That gap is one of the most overlooked advantages of buying in this part of DFW.

Pairing It With FHA Financing

Most of the time I pair My First Texas Home with an FHA loan, since FHA's 3.5% minimum down payment stacks cleanly with the program's deferred assistance. On a $425,000 McKinney home, a 5% allocation is $21,250 — more than enough to cover the FHA down payment with funds left over for closing costs. Some qualifying buyers with 680+ credit choose a conventional loan instead to avoid FHA's ongoing mortgage insurance premium, and I run both scenarios side by side so you can see which path actually costs less over five years.

What Trips Up McKinney Buyers

The most common mistake I see is a buyer assuming this program works like a grant with no strings attached. It doesn't — the three-year residency requirement is real, and I make sure every McKinney client understands exactly what happens if life circumstances mean an earlier move or refinance. The second most common mistake is skipping the required homebuyer education course until the last minute; I have my McKinney clients complete it early in the process so it never holds up a closing date. Call or text me at 469-545-7180 as soon as you're seriously considering this program, and I'll map out the full timeline with you.

A Realistic McKinney Number Breakdown

These numbers show why I like this program so much for McKinney buyers specifically — the higher price points that come with Collin County living mean a 5% allocation translates into meaningfully more real dollars than the same percentage would in a lower-priced part of DFW. Call or text me at 469-545-7180 to run your specific home price through this same math.

Next Steps

If you're weighing My First Texas Home against other options, start with my down payment assistance overview, browse the McKinney DPA combo page for a fuller program comparison, or check my McKinney location page for current market conditions. I've also written a broader TSAHC Home Sweet Texas guide if you want to compare the grant option against this deferred-lien program.