Plano First-Time Homebuyers Program

The City of Plano’s First Time Homebuyers Assistance and Educational Program (FTHB) is provided with funds from the United States Department of Housing and Urban Development (HUD), through the Community Development Block Grant (CDBG) and HOME Investment Partnerships Program (HOME).

The FTHB program is designed to assist eligible low and moderate income households to buy a home in Plano by providing down payment and closing costs assistance in the form of deferred payment loans.

Eligibility Guidelines

  • You must have not owned a home in the last three years. In some cases, a First Time Homebuyer can be a displaced homemaker.
  • Your total household income must be 80% or less of the area median income. Housing and Urban Development (HUD) Income Limits are listed later in this tab. A Household includes the related family members and all the unrelated people sharing a housing unit such as partners or roomers.
  • Must be a United States citizen or a permanent resident alien.
  • Main borrower must be employed at a minimum of one year. The applicant(s) with less than six months of employment with the current employer must provide evidence that the applicant has been working in the past 12 months.
  • Must attend an eight-hour First Time Homebuyer class held by the City.
  • Must receive housing counseling by HUD approved agency.
  • Cash assets must be less than $36,000 (not including retirement accounts).
  • The Homebuyer(s) and spouse(s) must have a minimum credit score of 620.
  • Spouse and/or co-borrowers without a credit score maybe eligible providing that non-traditional credit history (minimum of three creditors) can be verified and no more than two 30-Day late payments in the previous 12 months.
  • Any judgments must be paid off. Any bankruptcy must have been discharged for at least two years and good credit re-established.
  • Must contribute a minimum of $1,000 toward the down payment or pay for closing costs. Gift funds can be used to meet this $1,000 requirement, however, the Homebuyer(s) must make a minimum of $500 contribution from their own funds.
  • The debt ratios of the homebuyer with a credit score between 620 to 699 and/or the homebuyer with a spouse and/or co-borrower without a credit score should not exceed 31% on the front end and 43% on the back end of gross monthly income.
  • Homebuyers with a credit score of 700 or higher may increase their debt ratio up to 36% on the front end, 45% on the back end of the gross monthly income, but must have a 3-month cash reserve.
  • Must be approved by an in-house underwriting process. 

Income Limits by Family Size

Family SizeIncome Limit

Two Down Payment Options

Eligible homebuyer may select one of the two down payment options below:

  • Option 1: Community Development Block Grant (CDBG) funding, in the amount not to exceed $10,000, 0% interest (0% APR), deferred, forgivable loan, second lien position with a 5-year affordability period.
  • Option 2: HOME Investment Partnerships Program (HOME) funding, in the amount not to exceed $55,000, 0% interest (0% APR), deferred, forgivable loan, with a 15-year lien on the property. The amount of down payment assistance is based on need.

Property Criteria

In order for a property to be eligible for the First-Time Homebuyers (FTHB) program, the home must be decent, safe, sanitary, in good repair, and meet the City of Plano’s minimum housing standards and all applicable codes as certified by an inspection conducted by the City of Plano’s Community Services Project Coordinator. Additionally, the property must meet the following requirements:

  • Be a single-family home, townhouse, or condo; manufactured home is ineligible
  • Be located in the city limits of Plano
  • Be insurable
  • Be free from hazardous living conditions
  • Meet federal Environmental Protection Agency (EPA) regulations, including lead-based paint testing, and federal relocation regulations
  • Be vacant or occupied by Seller

Lead Paint

Properties built before 1978 are subject to a visual lead paint inspection and are not to have cracked or peeling paint that exceeds Housing and Urban Development (HUD) guidelines.

HOME Homeownership Value Limits

The effective date of the 2022 Homeownership Value Limits is October 1, 2022.


First-Time Homebuyers Assistance & Educational Program