Northfield First-Time Homebuyer Program

What is Northfield First-Time Homebuyer Program?

Northfield First-Time Homebuyer Program is a deferred second loan for homebuyers in Northfield, Minnesota, administered by Northfield Housing & Redevelopment Authority (HRA).

• The Northfield HRA provides first-time homebuyers up to $25,000 in a 0% interest deferred loan toward down payment or closing costs, repayable when the home is sold or the first mortgage is refinanced. Buyers must be income-eligible (<=80% of Dakota County AMI) and purchase a single-family home, townhome, or condo within Northfield city limits.
• Up to $25,000.
• 0% interest.
• Deferred until sale or refinance.
• For down payment or closing costs.

How much assistance does it provide?

Northfield First-Time Homebuyer Program offers up to $25,000 in assistance.

• The program can be combined with other assistance, subject to the rules of each.
• Amounts are the program's published maximums, not an offer — Northfield Housing & Redevelopment Authority (HRA) determines any individual award.

Do you have to pay it back?

Northfield First-Time Homebuyer Program is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

• Repayment is triggered by 0% deferred loan payable when the homeowner sells or refinances the first mortgage.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Northfield First-Time Homebuyer Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Northfield First-Time Homebuyer Program limits household income to 80% of the area median income, which varies by county and household size.

• Household income <= 80% of Dakota County AMI. As of 6/1/2026, Dakota County AMI $131,500; 80% limits: 1=$73,650;2=$84,200;3=$94,700;4=$105,200;5=$113,650;6=$122,050;7=$130,450;8=$138,900.
• The limit applies to total household income, not only the borrower&rsquo;s.
• The program lists a maximum household size of 8.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

Northfield First-Time Homebuyer Program can be used for Single Family, Townhouse, and Condo.

Where does it apply?

Northfield First-Time Homebuyer Program serves buyers purchasing in Northfield, Minnesota.

How do you apply?

Applications for Northfield First-Time Homebuyer Program go through Northfield Housing & Redevelopment Authority (HRA), which publishes the current terms and the application steps on its own site.

1. 1

   Contact Northfield Housing & Redevelopment Authority (HRA) to reserve funds

   Funds are reserved through Award amount depends on need and available funds., and are subject to availability.

2. 2

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.