About the Program:
The City of Oakland’s CalHome Program operates jointly with participating lenders to assist low income, first-time homebuyers to purchase homes in Oakland.
The City of Oakland lends qualifying homebuyers the amount needed to fill the financing gap in order to afford a home purchase. The subsidy covers a portion of the downpayment to allow buyers access to first mortgage loans with better terms. The City loans are secured by a Deed of Trust on the property and require no monthly payments.
The City provides these loans to create affordable homeownership opportunities for low income households.
Maximum Amount: Loan amounts are 30% of the purchase price, not to exceed $60,000.
Minimum Amount: N/A
Requirements
Eligible Applicants: Applicants must be first-time homebuyers. A first-time homebuyer is someone who has not owned their main residence during the last three years. Some exceptions may apply.
Oakland Resident/Worker/Displacee Requirement: The program is subject to the Oakland Residency requirements which limits buyer eligibility to households with an adult who is an Oakland resident, or an Oakland worker/student, or was displaced from an Oakland housing unit.
Location: Property must be located in the City of Oakland.
Eligible Properties: Any owner occupied or vacant single family dwellings, including detached, condos, townhomes and live work units. Purchase price cannot exceed $1,420,000. A satisfactory General Home Inspection is required and the home must meet basic health and safety requirements.
Income: Applicants' annual household income cannot exceed 80% of the Area Median Income (AMI). Income of all household members 18 years or older must be considered (includes house/roommates). Current limits are $76,750 for a household of 1 person, $87,700 for 2 persons, $98,650 for 3, $109,600 for 4, $118,400 for 5, $127,150 for 6, $135,950 for 7, and $144,700 for 8 persons.
Occupancy: Owner-Occupied only
Eligible Uses: Primary Residence. Renting is prohibited.
Other Requirements: Buyers must contribute 3% of the purchase price from their own funds to pay for down payment or closing costs. Some exceptions for Section 8 buyers and very low income may apply. Gift funds do not count towards the 3%.
Loan Details
Interest Rate: 3.0% simple
Payments/Terms: No Monthly Payments
· Due in 30 Years or when the borrower sells, transfers, refinances the property (under certain conditions) or converts the home to rental property.
· The CalHome second loan must be combined with a 30-year fixed first mortgage loan with taxes and insurance impounded
· 100% Maximum Combined Loan to Value (includes any FHA UFMIP)
· The City’s $250 application processing fee is collected when the home is under contract and the application is received.
Approved Lenders: Of those on the Participating Lender List, these institutions are approved for CalHome:
All California Mortgage/Division of APMC • American Pacific Mortgage Corp./DBAs • Bank of America • Bank of the West • Bay Equity Home Loans, LLC • Caliber Home Loans, Inc. • Envoy Mortgage • First Choice Loan Services Inc. • Guaranteed Rate, Inc. • Guild Mortgage • Mountain West Financial, Inc. • MUFG Union Bank • Opes Advisors • Patelco • Supreme Lending
Prepayment Penalty: None
Security: Deed of Trust
How to Apply
Status: Program is currently suspended. This page will be updated when the program is reopened and ready to take reservations.
Deadline: Funds are available by reservation on a first-come first-served basis. Please call or check the website periodically for status updates.
Pre-Application Process:
- Reserve space in a Homebuyer Education Workshop by visiting https://www.oaklandca.gov/services/attend-a-first-time-homebuyer-workshop and selecting a workshop.
- After getting a certificate of completion from the workshop, prequalify through the above lenders. The lender screens buyers for program eligibility. Later, when the buyer has a home under contract, the lender reserves funds and coordinates submittal of the application to the City.
Application Process for the First-Time Homebuyer CalHome Program
- Attend a home buyer education workshop
- Get your loan pre-approval from a participating lender
- Select a real estate agent.
- Find a home.
- Sign a purchase contract.
- Complete the loan application with a participating lender and provide the purchase contract.
- Lender structures your financing package and reserves program funds.
- City of Oakland commits funds to the transaction. Funds are committed on a first-come-first serve basis only after the buyer is in contract and eligible financing is structured.
- Lender submits application to City of Oakland.
- City of Oakland verifies eligibility and issues approval letter.
- City coordinates loan closing and funding with first lender and escrow.
Application: The first mortgage lender assists buyers with the application. Buyers do not apply directly to the City.
Return to the SERVICES FOR HOMEBUYERS page.