Down Payment & Closing Cost Assistance

SETH 5 Star Texas Advantage Program

No First-time Homebuyer Requirement -
Just Help To Buy Your Home


The 5 Star Texas Advantage Program provides eligible homebuyers several options for a loan program that meets their needs. Buyers get a 30-year fixed-rate mortgage and a grant to be used for the down payment and closing costs associated with their home purchase. The maximum grant is 6%, and is based on your actual loan amount. Grants range from 3%- 6% and you will work with your loan officer to decide the financing options and grant you would like to use. There is no repayment expected for this grant and no second lien on your home. This program can help reduce your out-of-pocket expenses and make home ownership easier to achieve.


Local down payment programs and MCC programs may be combined with this program.

  • No first time homebuyer requirement
  • Must be income-eligible 
  • Minimum of a 640 credit score
  • Must purchase in program area
  • Must attend SETH-approved online homebuyer workshop

For more information, visit the SETH website.

City of McKinney Program 

The City of McKinney Homebuyer Assistance Program provides down payment and closing cost assistance to low-to-moderate-income first-time homebuyers. Assistance is provided up to $10,000 as a 0% interest five-year forgivable loan for down payment and non-recurring closing costs associated with the purchase of the new home. The loan is repayable only if you refinance, pay off the first mortgage, sell or otherwise convey title to the property within the five year period.


Application and Application Process


You may be eligible if you meet the following qualifications:

  • You are a first-time homebuyer. A first-time homebuyer is an individual or household who has not owned a home in the last three years or is a displaced homemaker.
  • You are able to provide proof of U.S. citizenship or permanent legal resident alien status.
  • You are able to qualify for a mortgage loan with a private lender.
  • The debt-to-income ratio (“back-end ratio”) may not exceed 45%.
  • The housing ratio ("front-end ratio") must be at least 20%.
  • You will reside in the home as your principal residence.
  • The home is located within the city limits of McKinney, Texas.
  • Your income does not exceed 80% of the Area Median Income.
  • You complete a HUD and City of McKinney-approved homebuyer counseling class.