Hey there! Navigating the home-buying process can feel overwhelming, especially when you’re stepping into it for the first time. But don’t worry—I’m here to help simplify things for you. Let’s talk about a fantastic opportunity that might make your journey to homeownership in Plano, Texas, a bit smoother: the First-Time Homebuyers Assistance & Educational Program offered by the City of Plano.

Program Overview

The City of Plano has designed this program to assist eligible low- and moderate-income households in purchasing their first home within the city limits. The program provides financial assistance for down payments and closing costs, making the dream of owning a home more attainable.

Funding Sources

• Community Development Block Grant (CDBG): Offers up to $10,000 as a deferred, forgivable loan with 0% interest. This assistance comes with a 5-year affordability period, meaning if you reside in the home for five years, the loan is forgiven.
• HOME Investment Partnerships Program (HOME): Provides up to $55,000, also as a deferred, forgivable loan with 0% interest. This option has a 15-year affordability period.

Eligibility Criteria

To qualify for this program, applicants must:

• Be first-time homebuyers (not have owned a home in the last three years).
• Meet income requirements, which vary based on household size and are subject to annual changes.
• Have a minimum credit score of 620.
• Adhere to debt-to-income ratio requirements: a maximum 31% front-end ratio and 43% back-end ratio.
• Contribute a minimum of $1,000 toward the down payment or closing costs, with at least $500 coming from their own funds.

Benefits

• Financial Assistance: Substantial aid with down payments and closing costs.
• Forgivable Loan: The loan is forgiven if you meet the residency requirement for the specified period.
• Homeownership Education: The program includes educational components to prepare you for successful homeownership.

Potential Drawbacks

• Residency Requirement: You must reside in the home for the full affordability period (5 or 15 years) to have the loan forgiven. Moving or selling the home before this period ends may require repayment.
• Property Eligibility: The home must meet the City of Plano’s minimum housing standards and applicable codes, which may limit available property options.

Application Process

1. Housing Counseling: Receive counseling from a HUD-approved agency.
2. Pre-Approval: Obtain a mortgage pre-approval from a participating lender.
3. Application Submission: Complete and submit an application with required documents.
4. Home Selection: Choose a qualifying home that meets program standards.
5. Final Approval & Closing: Once approved, finalize the process and close on your home.

Learn More & Apply

For more details and the most up-to-date eligibility requirements, visit the official City of Plano website:
City of Plano First-Time Homebuyer Program.