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How Much House Can You Afford in McKinney? A Buyer’s Guide

  • Writer: Nitin Gupta, CRS, REALTOR
    Nitin Gupta, CRS, REALTOR
  • Mar 7
  • 3 min read



McKinney, TX is one of the most desirable cities in North Texas, known for its top-rated schools, charming downtown, and master-planned communities. If you're considering buying a home in McKinney, here’s a guide to help you determine how much house you can afford based on your budget, mortgage rates, and local real estate trends.


🏡 Home Prices in McKinney, TX

  • Median home price: ~$525,000

  • Entry-level homes: $350,000 - $500,000 (3-4 beds, 1,800-2,800 sq. ft.)

  • Luxury homes: $1M+ (custom builds, golf course views, high-end finishes)

  • New construction homes: $450K - $1.5M in communities like Trinity Falls, Stonebridge Ranch, and Adriatica Village

📈 Market Insight: McKinney’s home prices continue to rise due to its strong economy, excellent schools, and growing corporate presence.


💰 How Much Home Can You Afford?

1. Understanding Your Budget

The amount of home you can afford depends on:

✔ Income – Your salary, bonuses, and additional earnings

✔ Down Payment – How much cash you can put down (10-20% is ideal)

✔ Credit Score – Affects interest rates (higher scores = lower rates)

✔ Debt-to-Income Ratio (DTI) – Mortgage lenders prefer a DTI under 43%

✔ Current Interest Rates – Affects monthly payments


📌 General Rule of Thumb: You can typically afford a home that’s 3-5 times your annual income if you have little to no debt.


2. Sample Affordability Scenarios in McKinney



📝 Scenario 1: First-Time Homebuyer

  • Annual Income: $90,000

  • Down Payment: 10% ($35,000)

  • Interest Rate: 7.0%

  • Max Home Price: ~$375,000 - $450,000

  • Estimated Monthly Payment: ~$2,800 (including taxes & insurance)


🏡 Best Communities for This Budget:

  • Eldorado Heights – Established neighborhood with affordable homes

  • Wynn Ridge Estates – Newer homes under $450K with community amenities

  • Heatherwood – Move-in ready homes with parks and trails



📝 Scenario 2: Move-Up Buyer

  • Annual Income: $140,000

  • Down Payment: 20% ($100,000)

  • Interest Rate: 6.5%

  • Max Home Price: ~$600,000 - $750,000

  • Estimated Monthly Payment: ~$4,200


🏡 Best Communities for This Budget:

  • Stonebridge Ranch – Master-planned community with lakes, trails, and golf courses

  • Trinity Falls – Resort-style amenities and large homes

  • Hardin Lake – Homes with private greenbelt and water views



📝 Scenario 3: Luxury Buyer

  • Annual Income: $250,000+

  • Down Payment: 25% ($250,000)

  • Interest Rate: 6.0%

  • Max Home Price: ~$1.2M - $1.5M

  • Estimated Monthly Payment: ~$8,000+


🏡 Best Communities for This Budget:

  • Adriatica Village – European-inspired waterfront homes

  • Craig Ranch – Luxury golf course homes near TPC Craig Ranch

  • Provine Farms Estates – Custom homes on large lots



💵 Additional Costs to Consider

📌 1. Property Taxes:

  • McKinney’s property tax rate is around 2.2% - 2.6% of home value.

  • Example: A $600K home = ~$14,000/year in property taxes.

📌 2. HOA Fees:

  • Many master-planned communities have HOA fees ($500-$1,500/year).

  • Covers security, pools, trails, parks, and community events.

📌 3. Closing Costs:

  • Expect to pay 2-5% of the home price in closing costs.

📌 4. Homeowner’s Insurance:

  • Expect to pay around $2,000 - $4,500 per year.

📌 5. Maintenance & Utilities:

  • Larger homes = higher utility costs ($250+ per month in summer).


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🏆 Tips for Buying a Home in McKinney

✔ Get Pre-Approved: Before house hunting, secure pre-approval from a lender to understand your true budget.

✔ Consider New Construction: McKinney has many new homes with builder incentives (rate buy-downs, closing cost assistance).

✔ Shop Around for Mortgage Rates: A 0.5% difference in interest rates can save thousands over time.

✔ Factor in Commute & Schools: McKinney has top-rated schools, but check commute times if you work in Frisco, Plano, or Dallas.

✔ Work with a Local Real Estate Expert: Homes in McKinney move fast, and having a knowledgeable agent can give you access to off-market listings and builder deals.


📌 Final Thoughts: Can You Afford a Home in McKinney?

Yes—whether you’re looking for an entry-level home, a move-up home, or a luxury estate, McKinney offers options at different price points. The key is to understand your budget, explore financing options, and factor in additional costs.


 

Call us at 469-269-6541 for more information about McKinney real estate!


FIND A LUXURY HOME IN   MCKINNEY, TEXAS WITH NITIN GUPTA, BROKER ASSOCIATE, REALTOR®.


When purchasing a luxury home in   McKinney, Texas, it’s essential to consider factors such as location, architectural style, security, and amenities to ensure the home meets both lifestyle and investment needs. By selecting a property in a prestigious neighborhood with numerous amenities and security measures, buyers can ensure they’re making a valuable and rewarding investment in the vibrant McKinney market.


For those looking to invest in luxury homes in McKinney, Texas, Nitin Gupta is an expert real estate professional ready to assist. Known for his extensive experience, market insights, and numerous awards, he is committed to finding his clients the best properties in the area.


Contact Nitin Gupta at 469-269-6541 or send a message today to explore exclusive listings and secure your ideal luxury residence in one of McKinney elite communities.




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