HOME FINANCING · TX

Home Financing in Plano, Texas: A Plain-Language Guide for Contractors and Small Investors

Plano is one of the most competitive housing markets in North Texas, and the big banks are not the only door — or even the best one. If you have been turned away before, that does not mean you are out of options; it means you went to the wrong place first. Local credit unions, ITIN-friendly lenders, and state-backed programs exist specifically for buyers the traditional system overlooks. This guide tells you where to look, what to prepare, and what traps to avoid.

§ 01 — What it is

It's a market, not a wall.

Plano sits in Collin County, one of the fastest-growing counties in the United States. Median home prices run high — often above $450,000 — but that does not mean ownership is only for people with perfect credit and W-2 jobs. The market has multiple financing layers. There are conventional loans, FHA loans, ITIN loans for buyers without a Social Security number, and down payment assistance programs run by the state of Texas and by Collin County itself. The wall most people hit is not the market — it is one bank saying no and the buyer not knowing there are five other doors. This guide is about those other doors.

§ 02 — Who qualifies

Forget what the banks say.

Large national banks run automated underwriting systems built around W-2 income, FICO scores above 680, and two years of tax returns showing steady employment. If you are a solo contractor, a gig worker, or someone who uses an ITIN instead of a Social Security number, you fail those filters before a human ever looks at your file. That rejection is a system problem, not a you problem. Community development financial institutions, local credit unions, and ITIN-mortgage specialists use different criteria. They look at bank statements, profit-and-loss statements prepared by an accountant, rental income history, and payment records on utilities and rent. The information you already have may be enough — you just need a lender who knows how to read it.

§ 03 — What you need

Five things. Get them in order.

1. PROOF OF INCOME. If you are self-employed, gather 12 to 24 months of bank statements and ask a licensed CPA to prepare a profit-and-loss statement. Lenders who accept this will ask for it in a specific format — ask them first. 2. ITIN OR SSN. Either one works with the right lender. An ITIN mortgage is a real product, not a workaround. Make sure your ITIN is current with the IRS before you apply. 3. DOWN PAYMENT. Conventional loans in this price range often want 5 to 20 percent down. FHA loans allow 3.5 percent. Texas has two major down payment assistance programs — the Texas Department of Housing and Community Affairs (TDHCA) My First Texas Home and the Homes for Texas Heroes program — that can cover part of your down payment if your income falls within their limits. 4. CREDIT HISTORY OR ALTERNATIVE HISTORY. If you have no credit score, lenders who do manual underwriting will accept 12 months of on-time rent, utility, and phone payments. Get documentation of all of them. 5. A HOUSING COUNSELOR FIRST. Before you sign anything, talk to a HUD-approved housing counselor. It is free. They will review your documents and tell you what you qualify for before you spend money on an application.

§ 04 — Where to start in Plano

Four doors worth knowing.

The lenders and resources listed below serve buyers in Plano and the greater Dallas–Collin County area. Always call to confirm current programs, income limits, and eligibility before you apply.

BCL of Texas (Business & Community Lenders)

A state-chartered CDFI based in Dallas that offers mortgage lending and homebuyer education specifically for low-to-moderate income buyers and those with nontraditional credit profiles across North Texas, including Collin County.

BEST FOR

First-time buyers with thin or no credit file

Credit Union of Texas

A Dallas-area credit union with branches serving Plano that offers mortgage products with more flexible underwriting than big banks and lower fees, and membership is open to most residents of the Dallas–Fort Worth area.

BEST FOR

Self-employed borrowers and contractors

Texas Department of Housing and Community Affairs (TDHCA)

The state agency that runs the My First Texas Home and Homes for Texas Heroes programs, which combine 30-year fixed mortgages with down payment and closing cost assistance for income-eligible buyers statewide, including Plano.

BEST FOR

Buyers who need down payment help

Guadalupe Credit Union (ITIN-friendly regional referral)

While headquartered in New Mexico, Guadalupe Credit Union is frequently cited as a model ITIN mortgage lender for the Southwest and can help Plano-area buyers identify similar ITIN loan products through their network — confirm Texas availability directly.

BEST FOR

ITIN holders without a Social Security number

§ 05 — What to avoid

Don't fall into these traps.

Plano has a hot market and a lot of people who want to take money from buyers who are in a hurry or feel desperate. The traps below are common. Read them before you talk to anyone asking for money upfront.

UPFRONT FEE SCAM

Any person who asks for cash before delivering a mortgage commitment — whether they call it a processing fee, consultation fee, or application deposit — is likely running a scam; legitimate lenders collect appraisal fees only after you are in the process.

RATE BAIT SWITCH

Some brokers advertise an interest rate to get your attention and then change the terms at closing, counting on the fact that you are too far in the process to walk away — always get the Loan Estimate in writing and compare it line by line to the Closing Disclosure.

DEED TRANSFER FRAUD

A predatory scheme common in hot markets where a seller or middleman transfers the deed to a buyer who pays monthly installments but never gets clear title, leaving the buyer with no legal ownership and no recourse if payments are disputed.

§ 06 — Ask a question

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