Home > Home Buying >  Frisco TX Down Payment & Closing Cost Assistance Program

With aid from the National Housing Trust Fund, the City of Frisco offers 2 attractive programs to assist interested individuals own homes in the city of Frisco limits.

Program #1: The Frisco Down Payment Assistance Program

This program is offered to help individuals who works full-time in Frisco TX for at least 6 months. If there are more than 1 adult in the household, at least 1 adult must work within Frisco city limits. This program provides forgivable loans up to $10,000 to qualified home buyers and these funds can be used towards the down payment and closing costs. The home buyer is required to pay 50% of the closing costs.

The Frisco TX first time home buyer is defined as an individual who has not own a property in the last 3 years. He/She must provide at least 1% of the purchase price from personal funds - not from other programs or assistance.

The Down Payment Loan Assistance is a 10-year non-amortizing loan at zero (0%) interest rate at 10% per year.

The unforgiven portion of the loan must be repaid if, within the 10-year period, if the house is sold, refinance for a cash-out mortgage or the house is no longer deemed homestead (primary residence) for the individual. The remaining unforgiving portion must be re-paid in 5 years.

This program is offered to all home buyers that meet the criteria on a first-come, first-serve basis based on availability of the funds. Priorities will be placed on a point-system for home buyers that:

• A point will be awarded for each year of full-time employment within Frisco TX city limits. Maximum 10 points award.
• For every additional $500 contributed towards the sale of the home (above 1% of purchase price) receive 1 point, up to maximum of 10 points.
• 5 points awarded for purchasing an pre-existing home.
• 5 points awarded to City of Frisco or Frisco Independent School District employee with more than 1-year employment history.

Program #2: Targeted to City of Frisco or Frisco Independent School District

The maximum loan program is $5,000 offered to City of Frisco or Frisco Independent School District employees. Like the previous program, this is also a forgivable loan ie the loan does not need to be re-paid if the requirements are fulfilled.

The Down Payment Assistance Loan is a non-amortizing with zero percent interest rate. The unforgiven portion of the loan must be repaid immediately if the property is:

• Sold prior to re-payment.
• Refinanced (cash out).
• No longer the borrower's homestead.

The Down Payment Assistance Program ($5,000) may be used towards down payment, closing costs, pre-paid and discount points.

Qualifications for the Frisco TX Down Payment Assistance Program #2 include:

• Income limit for 1 or 2-person household not exceeding $66,500.
• Income limit for 3 person(s) or more not exceeding $76,475.
• Purchase price for the home do not exceed $170,000.
• At least one adult in the household is a full-time City of Frisco or Frisco Independent School District for at least 6 months.
• Qualify as a Frisco TX first time home buyer as someone who has not owned a home in the last 3 years.
• Provide at least 1% of the purchase price from personal funds, not borrowed or gifted by other programs or assistance.
• Purchase a home within City of Frisco limits.
• Plans to occupy the property as primary residence.

The loan program is offered on a first-come, first-serve basis to the eligible applicants. Upon approval, the $5,000 is reserved for your use, up to 4 months.

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