Overview

The Section 8 Homeownership Voucher Program is offered to eligible Oakland Housing Authority (OHA) residents and allows participants to have their housing subsidy applied towards a monthly mortgage payment. Residents who wish to join the program must meet certain requirements which include attending a homeownership orientation and education course. With the assistance of an OHA Homeownership Program Coordinator, participants go through the process of purchasing a home with the help of a realtor and securing financing through a mortgage lender.

Similarities between renting with OHA and Homeownership: Residents contribute 30% of their income towards either their monthly rent or a mortgage.

Homeownership Program FAQs

Program Requirements

In accordance with OHA’s Administrative Plan, the following requirements must be met to move forward with the program. 

  • Must be a resident in “good standing” with no lease violations or outstanding rent payments and may not have owed a debt to the Oakland Housing Authority within the past five years. 
  • Must complete required pre-purchase homeownership counseling courses. 
  • Must be a first-time homebuyer. 
  • One or more adult family members purchasing the home must be working full-time (not less than 30 hours per week), consistently for one year. The minimum gross annual income for the family should be equal to the City of Oakland minimum wage multiplied by 2000 hours, based on the income of the adult family members who will own the home. (For example, a family must earn $33,780 based on the City of Oakland current minimum wage of $16.89 as of 1/1/2025.) 
  • The minimum income requirement for elderly (62+) or disabled families (head of household or their spouse) is equal to the current SSI monthly payment for an individual living alone, multiplied by twelve (12). (For example, $967 X 12= $11,604 as of 1/1/2025.) 

OHA requires that participating families must contribute their own resources towards the purchase of their home.  Working families must contribute a minimum of 3.5% of the purchase price. Disabled and elderly families must contribute a minimum of 1% of the purchase price. 

Credit scores of 640 or above for mortgage applicants.

Eligible homes are Single Family Residence, Condominium, Townhouse, Mobile Home or Land trust: 

  • Must be located within Oakland. 
  • Must be owner occupied. 
  • Must pass Housing Quality Standards (HQS). The Housing Quality Standards ensure homes meet adequate physical, structural, sanitary, security and safety standards for OHA residents. 

Ineligible homes include duplexes, triplexes and other types of multifamily dwellings.

Except in the case of a family that qualifies as an elderly or disabled family according to HUD guidelines, a family shall not receive homeownership assistance for more than 15 years if the initial mortgage has a term for 20 years or longer. For an elderly and disabled family, the homeownership assistance is for 30 years if resident is elderly (62 years or older) or disabled at the time of purchase. 

Planning for Homeownership

First-time homebuyer education and planning are key to making the home-buying process easier and more understandable. The following seven steps are intended to help you, as a future homebuyer better understand and prepare for the home-buying process. 

Participants must not have any lease violations and must not have any outstanding debt to any Housing Authority. 

Familiarize yourself with the details of the loan and purchase process by an approved HUD vendor. It’s important to know what you are getting into and see if you are ready for homeownership. Having an understanding of what lenders look for and what to expect as a first-time buyer will allow you to be an informed buyer. 

Establish a good foundation of money management for yourself and family. Basic money skills and budgeting are needed for successful homeownership. 

One or more adult family members purchasing the home must be working full-time (not less than 30 hours per week), consistently for one (1) year. The minimum gross annual income for the family should be equal to the City of Oakland minimum wage multiplied by 2000 hours, based on the income of the adult family members who will own the home. (For example, a family must earn $33,780 based on the City of Oakland minimum wage of $16.89 as of 1/1/2025.) The minimum income requirement for elderly (62+) or disabled families (head of household or their spouse) is equal to the current SSI monthly payment for an individual living alone, multiplied by twelve (12). (For example, $967 X 12= $11,604 as of 1/1/2025.)

Potential homebuyers must have good credit. A FICO score of 640 or higher is required.  You are encouraged to strive for the highest score you can achieve. For at least one (1) year prior to purchasing a home, you should assure that every credit card bill, rent check, car payment and any other debts/bills are paid on time. 

Your debt-to-income ratio for the lender’s purposes is based on the minimum monthly payment for all of your credit card debt, student loans, car loans and personal loans added together and compared to your gross monthly income. The lower this ratio, the greater your chance of being approved for a home loan. 

There are countless resources for living within budget and ways to save on everyday expenses. Saving for a home purchase requires discipline to set aside money for the future and manage finances. Here are some ways to do that:

  1. Create a special savings account for your home purchase and have part of every paycheck automatically transferred to that account. 
  2. Work extra hours or take on a second job temporarily to increase your income. 
  3. If you get a bonus, a tax refund or a cash gift, deposit it into your home-buying savings account.

The Do’s and Don’ts for Preparing for Homeownership

The Do’s   

  • Continue paying your rent on time and abiding by your lease.   
  • Make sure that your income and number of household members reported to housing is accurate.   
  • Attend a first-time homebuyer workshop.   
  • Work on increasing and maintaining your income.   
  • Make all of your credit card/loan payments on time.   
  • Reduce debt.   
  • Address any credit challenges you have or have had in the past.   
  • Pull your credit report, check for accuracy and correct any errors. Meet with a financial counselor if needed.  
  • Begin or continue saving money for your home purchase. 
  • Refer to the OHA Section 8 Homeownership Program booklet to help you plan for your purchase. 

The Don’ts 

  • Don’t take on new loans. 
  • Don’t overspend your budget. 
  • Don’t max out your credit cards. 
  • Don’t deplete your savings. 
  • Don’t pay any bills late.

OHA Homeownership Program Steps to Homeownership

  1. Save down payment Pull credit report (FICO 640+)
    1. Timeframe: Varies
  2. Homeownership Education Class (Mandatory) and Financial Education Class (if needed)
    1. Timeframe: Varies
  3. OHA participant must meet program eligibility criteria
    1. Timeframe: Varies
  4. Meet with H.O. Coordinator for homeownership program orientation. Bring credit report and requested documentation.
    1. Timeframe: Varies
  5. Choose lender. (HO Coordinator will write subsidy letter and send to lender)
    1. Timeframe: 30 Days
  6. Lender will contact you for any additional documents and will provide approval letter with maximum amount you can offer. Provide copy to HO Coordinator
    1. Timeframe: 2-4 Weeks
  7. Choose a Real Estate agent and have them contact HO Coordinator HO Coordinator can provide a list of agents upon request
    1. Timeframe: 2 Weeks
  8. Search and make offer with agent for home. Upon acceptance provide contract to HO Coordinator.
    1. Timeframe: Varies
  9. Open Escrow & pay deposit towards down payment to Title Company Escrow process begins
    1. Timeframe: Upon Acceptance of Offer
  10. Two inspections required: OHA inspection (free) and Independent home inspection (costs buyer)
    1. Timeframe: 7-14 Days
  11. Signing, closing and keys!
    1. Timeframe: 30-60 Days
  12. All closing documents must be forwarded to the HO Coordinator. Post Purchase classes will be offered.
    1. Timeframe: Upon Closing

OHA Homeownership Information Session

Every 3rd Tuesday of the Month at 12pm

  • Have questions about the Oakland Housing Authority’s Homeownership Program? Get answers to frequently asked questions Learn About OHA’s Homeownership Program and resources
  • Join us every 3rd Tuesday at 12pm here: \
    • Login ZOOM link: https://www.zoom.us
      • Meeting ID Number: 822 3727 3811
      • Passcode:080599
    • No Internet, call: 669-219-2599
      • Passcode: 123456

Financial Literacy & Homebuyer Education Resources

Please note: This is not an exhaustive list and OHA does not endorse one provider over another.

OHA Homeownership Program FAQ