Escambia County HFA Homeownership Program

Program Overview

The Escambia County Housing Finance Authority (ECHFA) Homeownership Program is designed to make homeownership affordable by reducing upfront cash-to-close requirements. This is a bond/HFA-style program offering a competitive 30-year fixed first mortgage combined with down payment and closing cost assistance.

Although issued by the ECHFA, this program serves Escambia County and multiple participating Florida counties.

Classic DPA Assistance

Amount: Up to $10,000 used for closing costs, down payment, and pre-paids.

Terms: 0% interest, non-amortizing, 30-year deferred second mortgage. No monthly payments are required on the assistance loan.

Repayment: The loan is not forgivable. It becomes due when the first mortgage is satisfied, or upon sale, transfer, rental, or disposition of the property.

Eligibility Requirements

First-Time Homebuyer Rule Generally required (no ownership in principal residence in the last 3 years).
Exceptions: Honorably discharged Veterans & Buyers in federally designated Targeted Areas.
Credit Score Minimum 640 credit score required to participate.
Occupancy Must occupy the home as your principal residence.

Income & Price Limits (Escambia County)

Category	Non-Targeted Area	Targeted Area
Household 1-2 (Gov)	$100,200	$120,240
Household 3+ (Gov)	$115,230	$140,280
Purchase Price Limit	$544,232	$665,173

*Freddie Mac HFA Advantage option has a distinct income limit of $80,160.

Stackable Benefits

AIS Grant

For the Freddie Mac Conventional option, borrowers earning ≤50% AMI may receive a $2,500 grant, and those earning >50% to ≤80% AMI may receive a $1,500 grant. This grant requires no repayment.

MCC Tax Credit

Offers a federal tax credit equal to 10%-50% of mortgage interest paid (capped at $2,000/year if credit >20%). Requires separate eligibility checks.

The Advantage of HFA Financing

In today's fluctuating housing market, the Escambia County HFA Homeownership Program offers stability and security that conventional financing often cannot match. By locking in a 30-year fixed rate, homebuyers are protected from rising interest costs, ensuring their principal and interest payments remain consistent for the life of the loan.

Furthermore, the "Classic DPA" effectively bridges the gap for renters who can afford monthly payments but struggle to save for the significant upfront costs of a down payment and closing fees. This program transforms the path to homeownership from a distant goal into an immediate reality.

Program Benefits at a Glance

Immediate Equity Building
Reduced Out-of-Pocket Expenses
Compatible with FHA, VA, and USDA Loans
No Monthly Payments on DPA Second Mortgage

Serving Communities Across Escambia

We are proud to facilitate homeownership throughout the entire Escambia County region. Whether you are looking for a historic home in downtown Pensacola, new construction in Cantonment, or a quiet retreat in Molino, the ECHFA program helps qualified buyers purchase homes in a wide range of communities.

Eligible Properties Include:

Single-Family Homes • Townhomes • Condos • PUDs

› Pensacola

› Cantonment

› Perdido Key

› Century

› Molino

› Bellview

› Warrington

› Ferry Pass

› Brent

› West Pensacola

› Ensley

› Myrtle Grove

› Goulding

› Beulah

Frequently Asked Questions

How does the Escambia County HFA Homeownership Program work?

The Escambia County HFA Homeownership Program provides a 30-year fixed first mortgage combined with up to $10,000 in down payment and closing cost assistance. The assistance is a 0% interest, deferred second mortgage that requires no monthly payments and is repaid only when you sell, refinance, or pay off the first mortgage.

What is the income limit for the Escambia County HFA program in 2026?

For the Government loan option in Non-Targeted Areas, the limit is $100,200 for households of 1-2 people and $115,230 for households of 3 or more. In Targeted Areas, these limits increase to $120,240 and $140,280 respectively. The Conventional option has a flat limit of $80,160.

Do I have to be a first-time homebuyer?

Generally, yes. You cannot have owned a principal residence in the last three years. However, this requirement is waived if you are an honorably discharged Veteran or if you are purchasing a home in a federally designated Targeted Area.

Is the down payment assistance forgivable?

No, the Classic DPA is not forgivable. It is a deferred lien. You do not make monthly payments on it, but the full amount becomes due and payable when you sell the home, transfer the title, refinance, or satisfy the first mortgage.

What credit score is needed for the program?

The minimum credit score to participate in the Escambia County HFA Homeownership Program is 640. This applies to both the FHA/USDA/VA government options and the Conventional loan options.

Can I use the Escambia HFA program with an FHA loan?

Yes, the program's "Governmental Classic" option allows you to pair the down payment assistance with a 30-year fixed FHA, VA, or USDA-RD first mortgage loan.

What are the Targeted Areas in Escambia County?

Targeted Areas are specific census tracts where higher income and purchase price limits apply, and the first-time buyer requirement is waived. In Escambia, these include tracts like 0004.00, 0016.00, and others. Eligibility is confirmed by address.

Can the funds be used for closing costs?

Yes. The Classic DPA funds can be used for eligible closing costs, lender fees, pre-paids, mortgage insurance premiums, and reimbursement of earnest money. You cannot receive cash back at closing.

What property types are eligible?

Eligible properties include single-family attached or detached homes, condominiums, townhomes, and Planned Unit Developments (PUDs). The property must be located within the program's service area.

How do I apply for the program?

You must apply through a participating lender, such as Next Wave Mortgage. Use the "Check Eligibility" form on this page to start the process. A loan officer will review your credit, income, and eligibility for the ECHFA bond program.

Stop Renting. Start Owning.

Don't let a down payment stand in your way. See if you qualify for up to $10,000 in assistance today.

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