When I talk to buyers about their home buying options, one of the biggest hurdles I have to overcome is the belief that homes are just too expensive. This is not a totally inaccurate notion, home prices have continued to rise over the last several years, and while prices are not rising as fast, the average home prices are still close to $800,000 in Oakland. However, one of the over looked tools to get into a home are programs offered by local governments. In this post we are looking at the Oakland Roots Program for Below Market Rate homes.
The City of Oakland, in partnership with housing non-profit Hello Housing and several affordable housing developers, have built brand new homes throughout the city on formerly vacant lots. In addition to adding much need housing in neighborhoods that need them, the program also makes sure these home are and remain affordable in years to come.
Here are three examples currently for sale:
How the Program Works
There are two main requirements for interested buyers. First you must have a minimum household of three people. That combination can be reached any number of ways. Second, the total income of the household cannot exceed 120% of the Area Medium Income. Below is a handy chart that shows what that means in actual dollars.
| No. of People in Household | Maximum Annual Gross Income |
|---|---|
| 3 people | $ 125,500 |
| 4 people | $ 139,450 |
| 5 people | $ 150,600 |
| 6 people | $161,750 |
| 7 people | $ 172,900 |
Key Points to Remember
An important thing to keep in mind is that these properties are designed to remain affordable. That means that as home prices increase, these homes will not increase in value as much as other homes. You can still build equity though and if you are having a tough time getting into at home, it is worth it to take a look.
Another important point is not all lenders can or will give financing for these types of homes. Luckily we have a list of lenders that you can reach out to that do. No matter what type of home you decide to by, the best thing to do is to get pre-approved to know how much home you actually can buy.
If you would like to know more about information about Oakland Roots homes and the process of how to buy one, call us at Kees’ Realty and we will walk you though the process. Our goal is to make sure you are informed, prepared, and able to purchase the home of your dreams.