Hey there! Navigating the home-buying process can feel overwhelming, especially when you’re doing it for the first time. But don’t worry—I’m here to help you understand the City of Oakland’s First-Time Homebuyer Mortgage Assistance Program (MAP), a fantastic resource designed to make purchasing your first home a bit more accessible.

Program Name:

City of Oakland First-Time Homebuyer Mortgage Assistance Program (MAP)

Source of Funding:

This program is funded by the City of Oakland and operates in partnership with participating lenders.

Eligibility Criteria:

• First-Time Homebuyer: You and your spouse must not have owned your principal residence in the past three years. There are exceptions, so check specific details.
• Income Limits: Your household’s annual income should not exceed 120% of the Area Median Income (AMI). This includes the income of all household members aged 18 or older. For the most current income limits, refer to the City’s guidelines.
• Oakland Connection: At least one adult in your household must be an Oakland resident, work or study in Oakland, or have been displaced from a former Oakland home.
• Personal Contribution: You’re required to contribute at least 3% of the purchase price from your own funds toward the down payment and/or closing costs. Some exceptions may apply.

Benefits:

• Financial Assistance: Provides a loan to bridge the gap between what you can afford and the purchase price of the home. Maximum loan amounts are:
  • Up to 80% AMI: 30% of the purchase price, not to exceed $75,000.
  • Between 80% and 120% AMI: 20% of the purchase price, not to exceed $50,000.
• Favorable Loan Terms: The loan carries a 3% simple interest rate with no monthly payments. It’s due in 30 years or upon sale, transfer, refinancing under certain conditions, or if the home is converted to a rental property. There’s no prepayment penalty.

Potential Drawbacks:

• Funding Availability: The program is currently suspended due to a lack of funds. Check the City’s website for updates.
• Property Restrictions: The property must be a single-family dwelling located in Oakland and serve as your primary residence. Properties with in-law units are not eligible. A satisfactory home inspection is required.

Application Process:

1. Attend a Homebuyer Education Workshop: Start by attending a workshop to understand the home-buying process. Reserve a spot through the City’s website.
2. Get Pre-Approved: Obtain a loan pre-approval from a participating lender.
3. Find a Home: Work with a real estate agent to locate a suitable property.
4. Sign a Purchase Contract: Once you find a home, sign the purchase agreement.
5. Complete the Loan Application: Submit your application through the participating lender, who will reserve MAP funds and coordinate with the City.
6. City Approval: The City verifies eligibility and issues an approval letter.
7. Closing: The City coordinates loan closing and funding with the first lender and escrow.

Applications are not made directly through the City but via participating lenders. There’s a $250 application fee, which is waived for FHA/VA loans.

For the most current information and updates on funding availability, visit the City of Oakland’s official First-Time Homebuyer Mortgage Assistance Program page.

Program Availability:

Geographic Area: City of Oakland, California

Sources:

• City of Oakland First-Time Homebuyer Mortgage Assistance Program (MAP)

Pros and Cons:

Pros:

• Financial Support: Substantial assistance to bridge the affordability gap.
• Low Interest Rate: 3% simple interest rate with no monthly payments.
• No Prepayment Penalty: Allows for early repayment without additional fees.

Cons:

• Funding Limitations: Program availability is subject to funding, which can be exhausted.
• Property Eligibility: Certain property types, like those with in-law units, are excluded.
• Owner Occupancy Requirement: The property must be the primary residence; renting it out is not permitted.