Gadsden

Escambia County Housing Finance Authority (ECHFA)

The Escambia County Housing Finance Authority was created in 1980 by the Escambia County Board of County Commissioners to help alleviate a shortage of affordable housing. The Authority is a special district in the State of Florida under Florida Statues, Chapter 159, Part IV.

The Program

This program is designed to make purchasing a home more affordable for low and moderate income homebuyers by providing homebuyers with affordable interest rate mortgage loans and down payment and closing cost assistance. Mortgage loans in this program are available on a first-come, first-serve basis. You can download the Gadsden County brochures for the Single Family (Governmental) Bond Eligible Program or Freddie Mac HFA Advantage (Conventional) Program under "Available Downloads." 

Visit this website for information about the program.

The Mortgage

The homebuyer may choose between a Conventional, VA-guaranteed, FHA-insured, or USDA-RD 30-year fixed rate mortgage.

Single Family (Governmental) Bond Eligible Program Option 30-year fixed rate.  See Today's Interest Rates.

Lenders may charge a Discount or Origination Fee or any combination of the two with the total not exceeding 1.00% of the loan amount. Effective November 15, 2018, the Governmental first and second mortgages are exempt from documentary stamps tax and intangible tax. 

Racapture Tax

The Single Family (Governmental) Bond Program Option is subject to potential Recapture Tax, view the Notice of Potential Recapture brochure.

Freddie Mac HFA Advantage (Conventional) Program Option  30-year fixed rate.  See Today's Interest Rates.

Lenders may charge an Origination Fee not exceeding 1.00% of the principal loan amount. Effective July 1, 2018, the Conventional first and second mortgages are exempt from documentary stamps tax.

MORTGAGE CREDIT CERTIFICATE PROGRAM (OPTIONAL) FOR CONVENTIONAL PROGRAM ONLY

A mortgage credit certificate ("MCC") is available in connection with ECHFA's Freddie Mac HFA Advantage (Conventional) Program Option. A MCC is a Federal Tax Credit (not to exceed $2,000 per year) available each year that the borrower continues to live in the home financed under the Program. Visit our MCC page for more details.

*Participating Lenders will provide specific APR information as required by law. 

Down Payment Assistance

The Authority offers down payment assistance (DPA) in all participating counties. DPA may provide upto 100% of the homebuyers cash to close as long as there is no cash back to borrower.

0% Non-Amortizing 30-Year Deferred Second Mortgage: The Authority presently provides up to $7,500 and can only be used with either First Mortgage type. The Second Mortgage is not forgivable and becomes due when first mortgage is satisfied or upon sale, transfer, rental or disposition of property.

Freddie Mac Affordable Income Subsidy (AIS) Grant Program

This program may be used with the Freddie Mac HFA Advantage (Conventional) Program ONLY. Borrowers using the Freddie Mac HFA Advantage Loan who meet specific income limits may be eligible for a grant to help with down payment and closing costs (the “Affordable Income Subsidy Grant” or “AIS Grant”). The income limits for the AIS Grants are determined by the county location of the home (see link). Borrowers at or below 50% of the Area Median Income (“AMI”) Limits as published by Freddie Mac are eligible for an AIS Grant in the amount of $2,500 and borrowers above 50% of AMI but at or below 80% AMI are eligible for an AIS Grant of $1,500.

There is no repayment of the AIS Grant – it is a grant subsidy.

If the borrower qualifies, the borrower may receive the AIS Grant, DPA assistance and a mortgage credit certificate. These subsidies are stackable.

Who Qualifies?

1. Borrowers must be first-time homebuyers. A first-time homebuyers is someone who has not had an ownership in a principal residence during the past three years. Some exceptions apply.
2. Qualified Veterans or homebuyers purchasing a property in a designated targeted area do not need to be first time homebuyers.
3. Borrowers must meet normal mortgage requirements to demonstrate credit worthiness. Borrowers must a have minimum 640 credit score to participate.
4. Borrowers must occupy the purchased home as their principal residence.
5. In connection with any Freddie Mac HFA (Conventional) Loan, a Homeownership Education Certificate is required for at least one qualified borrower.  The Certificate must be provided prior to loan closing.  Click for a link for an option for the required homebuyer education course.
6. Household income may not exceed the following limits within Gadsden County.

Maximum Income Limits

Single Family (Governmental) Bond Eligible Program Option
Family of 1-2: $68,900
Family of 3 or more: $76,235

Freddie Mac HFA Advantage (Conventional) Program Option
Family of 1-2: $82,080
Family of 3 or more: $95,760

Freddie Mac Affordable Income Subsidy (AIS) Grant
100% Area Median Income: $69,100
80% AMI: $55,280 = $1,500
50% AMI: $34,550 = $2,500

What Homes Qualify?

The single family home may be attached or detached, a condominium, townhouse/townhome or PUD. Homes must be located within one of the counties listed on the front of this brochure. The total purchase price of a home within Gadsden County may not exceed the following limits: 

Maximum Purchase Price:

Single Family (Governmental) Bond Eligible Program Option:
New & Existing Homes: $283,348

Freddie Mac HFA Advantage (Conventional) Program Option
New & Existing Homes: $283,348 

How To Apply?

1. Contact: To learn how to qualify and apply for a loan, and to obtain Participating Lender's contact info, please call us at (800) 388-1970 or Contact Us.
2. Apply: Contact the Participating Lender to apply for a loan.

Questions?

If you have questions, please contact ECHFA at 800-388-1970 or 850-432-7077.