See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated May 5, 2026
Homebuyer Programs in Richfield, MN (2026)
Richfield is a close-in inner-ring south Minneapolis suburb of about 37,000 residents in Hennepin County, sitting between Minneapolis and the MSP airport. The median home price is near 8,000 — among the more accessible established Hennepin County markets. The City of Richfield runs its own First-Time Homebuyer Program, offering up to ,000 (,000 base loan plus ,000 bonus) in zero-interest down payment and closing cost assistance. The bonus applies to current Richfield renters, households with a documented disability, or households with dependents under age 18. Layer in Minnesota Housing Start Up first mortgage, the Deferred Payment Loan (up to ,500), the Monthly Payment Loan (up to ,000), and the First-Generation Loan (up to ,000), plus nonprofit options like Homes Within Reach Community Land Trust (Richfield is a partner community), Twin Cities Habitat, Welcome Home DPA, and Community Keys Plus, and federal programs like FHA and VA. Note: Richfield is excluded from the Hennepin County HRA Homebuyer Assistance Program because the city operates its own program.
City Programs in Richfield
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Richfield First-Time Homebuyer Program | Deferred Loan | — | Yes | View → |
- Type:
- Deferred Loan
- First-time only:
- Yes
State Programs in Minnesota
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Minnesota First-Generation Homebuyer Loan Program | Deferred Loan | — | Yes | View → |
| Minnesota Housing Deferred Payment Loan | Deferred Loan | — | Yes | View → |
| Minnesota Housing Monthly Payment Loan | Repayable Loan | — | No | View → |
| Minnesota Housing Start Up Program | Government-Insured Mortgage | First mortgage with as little as 3% down | Yes | View → |
| Minnesota Housing Step Up Program | Government-Insured Mortgage | First mortgage; can also be used to refinance | No | View → |
- Type:
- Deferred Loan
- First-time only:
- Yes
- Type:
- Deferred Loan
- First-time only:
- Yes
- Type:
- Repayable Loan
- First-time only:
- No
- Type:
- Government-Insured Mortgage
- Amount:
- First mortgage with as little as 3% down
- First-time only:
- Yes
- Type:
- Government-Insured Mortgage
- Amount:
- First mortgage; can also be used to refinance
- First-time only:
- No
Federal Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| FHA Loans | Government-Insured Mortgage | Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026) | No | View → |
| Good Neighbor Next Door (HUD) | Government Property Sale Program | 50% discount off the list price of HUD-owned homes | Yes | View → |
| Home Possible Mortgage (Freddie Mac) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HomeReady Mortgage (Fannie Mae) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HUD $100 Down Program | FHA-Financed HUD REO Purchase | Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs. | No | View → |
| USDA Rural Development Loans | Government-Guaranteed Mortgage | 100% financing (no down payment required); loan amount up to appraised value | No | View → |
| VA Loans | Government-Guaranteed Mortgage | No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026) | No | View → |
- Type:
- Government-Insured Mortgage
- Amount:
- Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026)
- First-time only:
- No
- Type:
- Government Property Sale Program
- Amount:
- 50% discount off the list price of HUD-owned homes
- First-time only:
- Yes
- Type:
- Government-Guaranteed Mortgage
- Amount:
- Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
- First-time only:
- No
- Type:
- FHA-Financed HUD REO Purchase
- Amount:
- Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs.
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- 100% financing (no down payment required); loan amount up to appraised value
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026)
- First-time only:
- No
Nonprofit Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Community Keys Plus Impact Down Payment Assistance | Deferred Loan | — | No | View → |
| Homes Within Reach Community Land Trust | Deferred Loan | Subsidized purchase price; CLT removes the cost of land from the home price, typically saving tens of thousands per purchase | No | View → |
| Twin Cities Habitat for Humanity Homeownership Program | Repayable Loan | Affordable mortgage with monthly payments at or below 30% of household income; option to use TruePath Mortgage on the open market or purchase a Habitat-built or Habitat-renovated home | No | View → |
| Welcome Home Down Payment Assistance | Forgivable Loan | Varies by household need | Yes | View → |
- Type:
- Deferred Loan
- First-time only:
- No
- Type:
- Deferred Loan
- Amount:
- Subsidized purchase price; CLT removes the cost of land from the home price, typically saving tens of thousands per purchase
- First-time only:
- No
- Type:
- Repayable Loan
- Amount:
- Affordable mortgage with monthly payments at or below 30% of household income; option to use TruePath Mortgage on the open market or purchase a Habitat-built or Habitat-renovated home
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Varies by household need
- First-time only:
- Yes
How to Apply
Step 1: Confirm your eligibility. The Richfield First-Time Homebuyer Program requires you to be a first-time homebuyer (no ownership in the past 3 years). The ,000 bonus applies if you are a current Richfield renter, a household with a documented disability, or a household with dependents under age 18.
Step 2: Complete a HUD-approved homebuyer education course. Home Stretch (in person) or Framework (online) both qualify for the City's program and Minnesota Housing programs.
Step 3: Apply through the City of Richfield Community Development Department. Visit richfieldmn.gov for current application materials and contact details.
Step 4: Get pre-approved with a Minnesota Housing approved lender. Use the lender directory at mnhousing.gov to layer the Start Up first mortgage with the Deferred Payment Loan or Monthly Payment Loan.
Step 5: Be aware of Richfield's layering rules: gift funds and other down payment or purchase assistance cannot exceed ,000 when used in conjunction with Richfield funds, and Richfield funds cannot be used if more than ,000 in other debt is paid off at closing.
Step 6: Find a home located within the City of Richfield that fits your budget and program requirements.
Step 7: If you're open to a Community Land Trust home, contact Homes Within Reach to explore CLT properties in Richfield. The CLT model removes land cost from the purchase price, often saving tens of thousands.
Step 8: Submit your final application package and complete underwriting. Coordinate timing carefully between the city loan and your first mortgage closing.
Frequently Asked Questions
How much down payment assistance can I get in Richfield?+−
Who qualifies for the ,000 bonus on the Richfield program?+−
Do I have to be a first-time homebuyer?+−
What is the layering rule for the Richfield program?+−
Is Richfield eligible for the Hennepin County HRA program?+−
Can a Community Land Trust help me buy in Richfield?+−
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