Financing McKinney TX New Construction Homes

If you’re eyeing new construction homes in McKinney, TX, this is an exciting time. As a new construction homebuyer, understanding Texas financing options can make the process smoother and more affordable. Let’s dive into some key financing options to help you secure your new home in McKinney.

McKinney, TX Real Estate Market Watch

The median home sales price in McKinney, Texas, in July 2024 is $550K. The data provided at the time of writing can change over time. Please click here to consult a local real estate agent for more accurate information.

Recommended Financing Options for McKinney, TX New Construction Homes

My First Texas Homebuyer Option

This choice provides a three-decade loan with a favorable interest rate and support for initial payments and final expenses. This statewide program features a 0% interest 2nd lien and a 3-year forgivable 2nd lien option. Combine this with the Mortgage Credit Certificate (MCC) for extra savings.

To qualify and pass income and property value limits, you need a minimum credit score of 620. Apply through one of the Texas Homebuyer Program’s approved lenders.

Conventional Loans

If you can provide a 20% deposit, a traditional loan could be your most suitable option. This option allows you to avoid private mortgage insurance (PMI) and enjoy a competitive interest rate, keeping your monthly payments low and giving you an edge in competitive markets. However, only some first-time buyers have that much saved up.

Conventional 97 Loan

The Conventional 97 loan, backed by Freddie Mac or Fannie Mae, requires just 3% down and a minimum credit score of 620. After a few years, you may be able to stop paying mortgage insurance, which helps reduce your overall costs.

FHA Loans

FHA loans, backed by the Federal Housing Administration, are another great option. They require a 3.5% down payment and a minimum credit score of 580. Remember that mortgage insurance premiums must be paid until you either refinance, relocate, or completely pay off your loan.

VA Loans

VA loans offer zero down payment and no ongoing mortgage insurance for veterans and service members. Credit score requirements vary, but they are often around 620. These loans are among the best available, so check if you qualify.

Texas State Affordable Housing Corporation Loans

The Texas State Affordable Housing Corporation provides unique loan options for public employees and low-income purchasers.USDA loans suit individuals with low to moderate incomes purchasing homes in specific rural locations. These can provide additional assistance in buying homes for sale in McKinney.

Additional Tips

Numerous initiatives allow the application of contributed funds or assistance for your down payment and closing costs. The Texas State Affordable Housing Corporation provides unique financing options for public employees and low-income homebuyers who want to buy a home with minimal cash out of pocket.

If you’re unsure which loan is right for you, consult a lender or a North Point Realtor®. They can help match you with the best mortgage option based on your financial situation and home-buying goals.

Finding new construction homes in McKinney, TX, can be exciting and manageable with the right financing options. Learn more about living in McKinney. Explore your choices to find the best fit and make your dream home a reality!

Own Your Dream Home in McKinney, TX

Call Norma Wall, Broker at North Point Realty, at 214-212-6770, or meet our team of agents.

Let us help you make your new construction home purchase a smooth and successful experience.

Learn more about Mckinney and surrounding communities and see homes for sale.

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