The Plano Housing Corporation’s Homebuyer’s Program is designed to increase home ownership in low to moderate income homebuyers by providing financial assistance to help with the down payment and closing costs of purchasing a home.
Eligibility Requirements
Persons wishing to purchase a home in the City of Plano, whose household earns less than 80% of the median income for the area are eligible. The current income limits are:
|
Persons in Household |
Combined Family Income Limit |
|
1 |
$38,880 |
|
2 |
$44,400 |
|
3 |
$50,000 |
|
4 |
$55,520 |
|
5 |
$60,000 |
|
6 |
$64,400 |
|
7 |
$68,880 |
|
8 |
$73,280 |
All Applicants must meet the following criteria:
- Must be a first time homebuyer ONLY!
This means:
- Not owned a home in the last three years, or
- A displaced homeowner who previously owned a home with a spouse or former spouse or in a disaster area, or
- Lived in a home owned by a spouse or a former spouse
-
All applicants must be a US citizen or a Temporary/Permanent Resident Alien as defined by Federal regulations
- Must provide a minimum of $500 for downpayment
- Must fill out an application and supply all requested information including income verification
- Must attend a state certified homeownership class - see below
- May not have cash or marketable securities in excess of $10,000
- May not own another home
Eligible Properties
- New or pre-owned single family dwellings
- New or pre-owned attached homes, townhomes or condominiums
- Home must meet City’s minimum property standards
Maximum Grant and Loan Requirements
The maximum grant is $20,000 but this can be exceeded in some situations.
The Buyer must qualify for an underlying mortgage from a lender. Loans must be within certain limits as to rate and points charged to avoid “predatory” lending practices.
Repayment Requirements
The assistance provided by Plano Housing Corporation is a grant. The home buyer is expected to live in the house for a period of time based on the amount of grant. If the home is sold prior to this number of years, the unforgiven amount of the grant will be payable at closing of the sale of the home.
For example, if a homebuyer receives a grant in the amount of $20,000, $2,000 of the grant will be forgiven each year of occupancy. If, after 7 years the homebuyer sells the home, $6,000, if available from the sale will be due to the City of Plano when the home is sold.
Homebuyers Education Classes All applicants, spouses and any other person whose income is used to qualify for the mortgage must attend an 8 hour State certified homeownership class like the City of Plano’s Homebuyer’s Education class. This class is normally held on the third Saturday of each month at the Plano Municipal Center. Call Terrie Monroe at 972-941-7665 for the current class schedule. The class is free and offered in Spanish.
Example of Typical Transaction
|
Uses of Funds |
|
|
|
|
|
Purchase Price |
$100,000 |
|
Closing Costs |
6,000 |
|
Total |
$106,000 |
|
Sources of Funds |
|
|
|
|
|
First Mortgage |
$85,500 |
|
Down Payment from Buyer |
500 |
|
PHC Down Payment Assistance |
20,000 |
|
Total |
$106,000 |
Monthly Cost for Buyer
Principal and Interest (5%, 30 year term) $460
Escrows (tax, insurance and PMI) 350
Total Monthly Housing Cost $810
CONTACT US AT:
(469) 450-2458
director@planohousingcorporation.org
and we will send you application forms and set up an interview
