Financing New Builds in McKinney’s Painted Tree

Thinking about building or buying new in Painted Tree but unsure how the financing works? You are not alone. Between construction loans, builder incentives, and Collin County taxes, there are a lot of moving parts. In this guide, you will learn the best ways to finance a new home in Painted Tree, what drives your monthly payment, how to compare builder offers, and a simple timeline so you can plan with confidence. Let’s dive in.

Painted Tree snapshot: what affects financing

Painted Tree is a master-planned community in McKinney with trails, a 20-acre lake, pools, and planned amenity hubs. Multiple national and regional builders offer a wide range of homes and price points, from townhomes in the $300Ks–$400Ks to larger plans that can reach $700K–$1M+. You can explore community details and current builders on the official Painted Tree site.

From a budgeting standpoint, many Painted Tree listings advertise no MUD or PID, and an effective combined property tax rate often around 1.7 to 1.8 percent. HOA fees are typically present and may appear near about $90 per month for some homes. Actual tax rates and HOA dues vary by lot, plan, and builder, so verify for the specific home you choose.

Your financing paths at a glance

Different homes call for different loan types. Here is how most Painted Tree buyers finance.

If you are building from dirt

• Construction-to-permanent, also called one-time close: One loan covers the build and then converts to a regular mortgage at completion. It means one application and one closing, often with interest-only payments during construction. Learn how C2P works in this construction-to-perm overview.
• Construction-only, two-close: Short-term financing for the build, then a separate permanent mortgage after completion. This usually means two qualifications, two closings, and typically more fees.

If you want a quick move-in

• Completed or spec homes often use standard purchase financing. You can use conventional, FHA, or VA loans if you qualify and the property meets program rules.

Government-backed options

• FHA One-Time Close and VA One-Time Close are available through participating lenders. If you are considering FHA construction financing, review this FHA one-time close primer, then confirm lender availability.

Conforming vs. jumbo in Collin County

• The FHFA baseline conforming limit for 2025 is $806,500 for one-unit properties in Texas. Loans above that are jumbo and usually require stronger credit and reserves. You can check the current limit on the FHFA loan limits page.

What your monthly payment includes in McKinney

A smart budget looks beyond principal and interest.

• Property taxes: Many Painted Tree homes advertise combined rates near 1.7 to 1.8 percent, with no MUD or PID shown in marketing for many lots. Confirm the exact rate for your parcel using the City’s McKinney tax information.
• HOA dues: Budget for monthly or quarterly association fees. Ask your builder or listing agent for the current amount and inclusions.
• Homeowner’s insurance and PMI: Insurance and, if applicable, mortgage insurance for low down payments will affect cash flow.

Builder incentives: how to compare offers

Many builders in master plans offer incentives that can be valuable. The key is comparing the net benefit.

• Preferred lender incentives: Builders sometimes offer closing cost credits or promotional interest rates when you use their affiliated lender. You can see examples of community-level promotions on some builder pages, such as Southgate Homes at Painted Tree. Ask for a side-by-side Loan Estimate from the builder’s lender and an independent lender.
• Temporary rate buydowns: Buydowns like 2-1 or 3-2-1 can lower payments for the first one to three years. They are usually funded as a seller concession and your qualifying rate still uses the full note rate. Review the pros and cons with this temporary buydown guide, and prepare for the payment when the buydown ends.
• Upgrades and lot premiums: Design selections and lot premiums are typically financed, but the total price must appraise. If the appraisal comes in lower than your contract price, you may need to bring cash to close. Learn how as-completed appraisals work in construction-to-permanent loans.

Typical new-build timeline

Here is a realistic flow for a Painted Tree build.

1. Pre-approval and budgeting, 2 to 14 days. Get pre-approved with a lender experienced in construction or one-time-close loans. A C2P overview from a lender like FFBKC explains the process.
2. Contract and design, 1 to 8 weeks. Select your lot, sign the contract, and complete design center choices. Keep a written list of what is included.
3. Close on the loan, 2 to 4 weeks. For C2P, you will close once before construction. For two-close, you will close now and again at completion.
4. Construction with draws, often 6 to 12 months. The lender inspects before each draw. Expect documentation and progress checks.
5. Final steps. The lender orders final verification, you receive a Certificate of Occupancy, and either your loan converts to a permanent mortgage or you complete the second closing.

Down payment help and tax credits in Texas

Some buyers pair new-build financing with state assistance when eligible.

• TDHCA My First Texas Home: A 30-year mortgage with optional down payment assistance for first-time buyers and veterans, subject to income and purchase price limits. Review program basics and next steps on this TDHCA program summary.
• TSAHC and MCCs: Texas programs may offer down payment assistance and Mortgage Credit Certificates that reduce federal tax liability on a portion of mortgage interest. Availability, limits, and lender participation change often. Ask your lender early if your Painted Tree purchase can qualify.
• Coverage varies: Some statewide programs exclude certain cities or developments. Always confirm that a program covers McKinney and your specific property before relying on it.

How to pick the right lender

Choosing a lender with the right product mix and local experience matters.

• Ask if they originate construction-to-permanent loans, and how many they have closed recently in Collin County.
• Confirm minimum down payment, credit score, DTI, reserve requirements, and whether they offer FHA or VA one-time close.
• If a builder incentive requires the preferred lender, request a net, apples-to-apples comparison of rate, fees, and incentives.
• Understand draw schedules, inspections, interim interest payments, and appraisal timing. For a refresher on C2P mechanics, review this construction-to-perm guide.

Smart next steps

• Get pre-approved with a construction-capable lender and confirm if you qualify for any state assistance.
• Price your total project, not just base price: include lot premiums, design upgrades, estimated taxes, HOA, and insurance.
• If you plan to use a builder incentive, compare it against an independent lender offer to verify the net benefit.
• Verify whether your chosen lot has any special assessments and confirm exact tax rates using the City’s tax resources.

Ready to make a confident plan for your Painted Tree new build? Let’s talk through timelines, incentives, and the best financing fit for your goals. Reach out to KW 1st Team for local guidance and start-to-finish buyer representation.

FAQs

Can I use FHA or VA for a Painted Tree new build?

• Yes, if you work with a lender that offers FHA or VA one-time close construction loans and your home meets program rules; start by reviewing an FHA one-time close overview and confirm local lender availability.

Do I have to use the builder’s lender to get incentives at Painted Tree?

• Often yes, since many incentives require the preferred lender, so request a side-by-side Loan Estimate to compare the net value against an independent lender’s offer; builder pages like Southgate’s Painted Tree community show how these promotions are presented.

How long does a Painted Tree build usually take from contract to move-in?

• Many builds run about 6 to 12 months depending on plan, materials, inspections, and weather, followed by final approvals and closing or loan conversion if you used a construction-to-permanent loan.

Are property taxes and HOA dues included in my monthly mortgage payment?

• Your lender can escrow property taxes and insurance, while HOA dues are usually paid directly to the association; always confirm your escrow setup and the current HOA amount.

What happens if upgrades and lot premiums push my price above the appraisal?

• If the appraised as-completed value is lower than your contract price, you may need to bring additional cash to close or adjust selections; learn how appraisals work with construction-to-permanent financing.