First Time Homebuyers Assistance and Educational Program (FTHB) - CDBG

What is First Time Homebuyers Assistance and Educational Program (FTHB) - CDBG?

First Time Homebuyers Assistance and Educational Program (FTHB) - CDBG is a forgivable loan for homebuyers in Plano, Texas.

• City of Plano FTHB CDBG-tier: up to $10,000 forgivable second mortgage at 0% interest for first-time homebuyers in Plano city limits. 5-year affordability period. 80% AMI ceiling. Max purchase $418,000. 620 FICO (govt) / 700 FICO (conv).
• City of Plano's First Time Homebuyers Assistance and Educational Program (FTHB) - CDBG tier provides up to $10,000 in down payment and closing cost assistance to first-time homebuyers purchasing primary residences within Plano city limits. CDBG-funded. Structured as a 0% interest deferred forgivable second mortgage with 5-year affordability period (prorata forgiveness). Pairs with FHA, VA, USDA, or conventional 30-year fixed first mortgage. 80% AMI ceiling. Maximum purchase price $418,000.
• Funding comes from Federal.

Do you have to pay it back?

First Time Homebuyers Assistance and Educational Program (FTHB) - CDBG is forgiven after 5 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Deferred 0% second mortgage forgiven prorata over 5 years (20% per year). If property is sold, refinanced (cash-out), transferred, or vacated as primary residence before 5-year anniversary, unforgiven balance becomes due in full.
• The assistance is recorded in 2nd Lien position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

First Time Homebuyers Assistance and Educational Program (FTHB) - CDBG is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

First Time Homebuyers Assistance and Educational Program (FTHB) - CDBG limits household income to 80% of the area median income, which varies by county and household size.

• 80% AMI for Dallas-Fort Worth-Arlington MSA per HUD; 1-person $61,800 / 4-person $88,300 / 8-person $116,500 (2025 limits).
• The limit applies to total household income, not only the borrower’s.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

First Time Homebuyers Assistance and Educational Program (FTHB) - CDBG caps the purchase price at $418,000.

• Eligible property types include Single-family detached, condominium, townhouse, PUD. Must be primary residence.
• New construction is eligible.
• Manufactured homes are not eligible.

Is there eligibility for specific groups?

First Time Homebuyers Assistance and Educational Program (FTHB) - CDBG names veterans, active-duty service members, reservists and National Guard members, and surviving spouses among the groups it serves.

• Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

Where does it apply?

First Time Homebuyers Assistance and Educational Program (FTHB) - CDBG serves buyers purchasing in Plano, Texas.

How do you apply?

Applications for First Time Homebuyers Assistance and Educational Program (FTHB) - CDBG go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through HUD-approved 8-hour homebuyer education required. Local providers include Frameworks CDC, TSAHC network, and other HUD-approved counseling agencies in Collin County and DFW MSA..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Reserved by participating lender through City of Plano Community Services. Funds available on first-come, first-served basis subject to annual CDBG allocation., and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.