Saving for a down payment in Plano can feel like the biggest hurdle between you and homeownership. If you are a first-time buyer or watching your budget in Collin County, you are not alone. The good news: several loan products and down payment assistance options can lower your cash to close and make buying more achievable. This guide breaks down programs that serve Plano buyers, how eligibility works, and the smart steps to take with a lender. Let’s dive in.
What counts as down payment assistance
Down payment help in Plano generally comes in two forms:
- Low or no down payment mortgages you get through a lender, such as FHA, VA, USDA, or affordable conventional loans.
- Assistance layered on top of your first mortgage, such as grants, forgivable second liens, low‑interest seconds, and Mortgage Credit Certificates (MCCs).
Most assistance programs use income and purchase price limits, and many require a homebuyer education course and use of approved lenders. You will want to confirm current terms and availability directly with program sponsors or an approved loan officer.
Low or no down payment loans
These options come through participating lenders and can often be combined with local or state assistance.
FHA loans
FHA loans typically allow 3.5% down for qualified buyers and permit gift funds to help cover your down payment. You can learn more about FHA programs through the U.S. Department of Housing and Urban Development at the official HUD resource hub.
VA loans
If you are an eligible veteran or active-duty service member, VA loans often require 0% down and have flexible terms. Explore benefits and eligibility on the U.S. Department of Veterans Affairs home loan page.
USDA loans
USDA Guaranteed Loans offer 0% down for eligible buyers in approved areas with income limits. Much of Plano is not USDA eligible due to urban boundaries, so check the current map and criteria on the USDA Rural Development site.
Affordable conventional options
Fannie Mae HomeReady and Freddie Mac Home Possible programs allow as little as 3% down with income limits and flexible underwriting. These can sometimes be paired with third‑party assistance. Review product details at Fannie Mae and Freddie Mac.
Texas statewide programs that help Plano buyers
State-sponsored options are popular in Collin County and can be used with eligible first mortgages through participating lenders.
TDHCA programs
The Texas Department of Housing and Community Affairs offers the “My First Texas Home” program and administers Mortgage Credit Certificates (MCCs) that can reduce federal income tax liability on mortgage interest paid. Program terms vary by income and purchase price caps and may require first‑time buyer status. Start with the TDHCA site for current offerings and approved lender connections.
TSAHC programs
The Texas State Affordable Housing Corporation provides 30‑year fixed mortgages bundled with down payment assistance, plus targeted options for certain occupations through Homes for Texas Heroes. Assistance may be a grant, forgivable second, or low‑interest second, depending on the product. Visit TSAHC to review program types, income limits, and how to apply through participating lenders.
Local resources in Plano and Collin County
Local funding changes year to year, so check for current availability.
City of Plano
The City of Plano’s Housing or Neighborhood Services division may offer or refer you to homebuyer assistance, education, or counseling resources. Start your search at the city’s official site: City of Plano.
Collin County
The county may administer programs supported by federal funds or provide referrals to assistance and counseling. Check the official county site for updates: Collin County.
Who qualifies and what to expect
Eligibility varies by program, but most follow similar guidelines:
- Income limits. Programs often use a percentage of Area Median Income and adjust by household size.
- Purchase price caps. Homes must fall under program‑specific limits for Plano and Collin County.
- First‑time buyer rules. Many define a first‑time buyer as someone who has not owned a home in the last three years. Targeted programs may waive this.
- Credit and DTI. You still need to meet lender credit score and debt‑to‑income standards.
- Homebuyer education. Most programs require an approved course before closing.
- Property type. Owner‑occupied homes such as single‑family, approved condos, and townhomes are often eligible; investment properties are not.
- Approved partners. Many programs require use of participating lenders and may have additional fee requirements.
- Repayment rules. Some assistance is a forgivable second with a time-based schedule, some is repayable, and some is a grant. Ask about repayment, resale, or refinance implications.
How to compare options with a lender
A careful side-by-side view will help you choose the best fit for your budget and timeline.
- Compare cash to close. Look at how much assistance reduces your upfront cash compared with higher-down scenarios.
- Review monthly payments. If assistance is a repayable second lien, include that payment in your total monthly obligation.
- Check interest rate differences. Certain programs pair assistance with specific rates or fees.
- Consider PMI and long-term costs. Include mortgage insurance, any second-lien interest, and expected time in the home.
- Plan for refinancing. A second lien may need to be paid off or subordinated when you refinance. Confirm the process and costs.
Documents to bring and questions to ask
Arrive prepared so your loan officer can quickly confirm eligibility and lock timelines.
Bring these documents
- Recent pay stubs, W‑2s or 1099s, and federal tax returns
- Recent bank statements and documentation of assets
- Government-issued ID and Social Security numbers
- Purchase contract if under contract
- Details about gift funds or employer assistance
Ask your lender
- Which DPA programs do you offer that serve Plano and Collin County?
- Do you regularly close TDHCA and TSAHC loans and any local city or county programs?
- What are the income, purchase price, and buyer status limits for each option I might qualify for?
- Is the assistance a grant, forgivable second, or repayable second lien? What are the terms and fees?
- How does this assistance change my monthly payment and cash to close?
- What happens if I sell or refinance in the next few years? Any recapture or repayment?
- Do I need to work with program‑approved partners, and are there extra program costs?
- Can I combine an MCC with my mortgage to reduce federal income tax?
- What documentation is required and when must homebuyer education be completed?
- When should we apply to meet closing timelines?
Timeline, appraisal, and negotiation tips
- Start early. Many programs require registration or approval during pre‑approval, not after you go under contract.
- Watch price caps. Negotiate with purchase price and appraised value within program limits to keep eligibility intact.
- Use a detailed Loan Estimate. Ask your lender for a scenario that includes any subordinate lien so you can see total costs.
Next steps for Plano buyers
- Get pre‑approved with a lender that participates in Texas assistance programs.
- Confirm eligibility for income, purchase price caps, and first‑time buyer requirements.
- Complete an approved homebuyer education course if required.
- Review a side‑by‑side Loan Estimate that shows assistance, total monthly payment, and cash to close.
- Ask about resale, refinance, or forgiveness timelines before you commit.
If you want a clear path from pre‑approval to keys in hand, you deserve a team that knows Plano and Collin County programs well and can coordinate the moving parts with your lender. Reach out to Afshan Moosa for concierge guidance tailored to your goals. Your Move. Our Mission.
FAQs
What down payment assistance programs are available in Plano?
- Plano buyers can explore statewide options through the Texas Department of Housing and Community Affairs and the Texas State Affordable Housing Corporation, plus loan products like FHA, VA, USDA, and affordable conventional options.
How do income and price limits work in Collin County?
- Programs set maximum household income and purchase price caps by county and product; your lender will confirm current limits and how household size affects eligibility.
Can I combine FHA or conventional loans with assistance in Texas?
- Many assistance programs can layer with FHA and certain conventional products, but rules vary by sponsor; ask your lender to confirm allowed combinations and any added costs.
Are USDA loans an option inside Plano city limits?
- Much of Plano does not meet USDA’s rural eligibility; check current maps and criteria on the USDA Rural Development site to verify specific addresses.
What is a Mortgage Credit Certificate (MCC) in Texas?
- An MCC is a federal tax credit on a portion of your mortgage interest paid, administered in Texas through TDHCA; see the TDHCA site for current availability and rules.
Will down payment assistance affect refinancing later?
- If your assistance is a second lien, it may need to be paid off or subordinated during a refinance; your lender can explain timelines, costs, and any restrictions.
Where can I find local homebuyer resources in Plano?
- Check the City of Plano and Collin County for local program updates and referrals, and speak with a participating lender for current offerings.
