Escambia County Housing Finance Authority (ECHFA) Non-Forgivable 2nd Mortgage

Special Alert

Lender responsible for ensuring income limits have been met.

Maximum Purchase Price


Contact Info: 700 S. PALAFOX ST., STE 310, PENSACOLA, FL 32502


Must qualify for the ECHFA 1st Mortgage program and use an ECHFA approved lender. Funds cannot be used to payoff debt or any surplus proceeds be paid to the homebuyer over and above any reimbursement of fees paid prior to closing. Principal reduction of the 1st mortgage is not permitted. Coverage area income and Purchase price limits reflect the higher Targeted limits where applicable otherwise the non-targeted limits are outlined. Lenders must ensure that the borrower qualifies according to ECHFA requirements. _____________________________________________________________ Documentary Stamp Tax and Intangible Tax Recordation Requirements: 1) This legend must appear on the first and second mortgage and note – > ”THIS MORTGAGE IS EXEMPT FROM FLORIDA DOCUMENTARY STAMP TAX UNDER 201.08, F.S. AND FLORIDA NONRECURRING INTANGIBLE TAX UNDER 199, F.S. PER 159.621 FLORIDA STATUTES. REV. 3.28.19” 2) The first mortgage and note are NOT exempt from Intangible Tax. However, the second mortgage and note pursuant to section 199.183, Florida Statutes, are exempt from intangible tax. This legend must appear on the second mortgage: > “THIS MORTGAGE IS EXECUTED AND DELIVERED IN CONNECTION WITH A LOAN MADE BY OR ON BEHALF OF A HOUSING FINANCE AUTHORITY. IT IS EXEMPT FROM FLORIDA INTANGIBLE TAX PURSUANT TO THE PROVISIONS OF SECTION 199.183(1), FLORIDA STATUTES AND IS EXEMPT FROM THE DOCUMENTARY STAMP TAX PURSUANT TO THE PROVISIONS OF SECTION 159.621(2), FLORIDA STATUTES UPON THE FILING OF THE ATTACHED AFFIDAVIT.” ______________________________________________________________ Assumptions: > The Second Mortgage and Promissory Note second mortgage loans cannot be assumed, except that a transfer to a person who is an heir or devisee of the Mortgagor, upon the death of the Mortgagor, is permissible provided that the Second Mortgage and Promissory Note are not then in default and that said person: (a) occupies the Property as their principal place of residence; (b) qualifies under the income eligibility requirements set forth in the applicable Program; and (c) executes such documents (including, without limitation, an agreement assuming the obligations under the Second Mortgage and Promissory Note) and pays such fees and charges as the Authority may reasonably require.

Credit Score Requirements

Must meet 1st mortgage agency, insurer and master servicer requirements.

Deferred Payments?

Yes, for 30 years

Accepted First Mortgage Type:

Freddie Mac HFA Advantage, FHA 203(b), VA, USDA / RD

Homeowners Education Class:

Not Required

Is Forgivable?


21 Counties Alachua, Bay, Bradford, Escambia, Franklin, Gadsden, Gulf, Hernando, Indian River, Jackson, Jefferson, Leon, Madison, Marion, Martin, Okaloosa, Santa Rosa, St. Lucie, Taylor, Wakulla and Walton Counties.

Income Limitations:

Yes, based on Compliance Income Income limits from Agency-defined 2022 guidelines Freddie Mac HFA Advantage – 80% or less AMI required. More detailed guidelines for calculating program income are located in the Program Guides. Income entered is the higher Targeted and Government limits since they follow the first product selection.

Maximum Assistance


Education Requirements Info:

Although homebuyer education is strongly recommended, it is not required by the Escambia HFA in connection with the Governmental Program Option.

Eligible Property Types:

Single Family Detached Condo Townhome/PUD

Income By Household Size:

HH1-2HH3-8 $103,487$119,840 *Income limits as of 04/20/2023

Qualifying Ratios:

Housing Ratio: — Total DTI: Up To 45% Must meet 1st mortgage agency, insurer and master servicer requirements.