The talk show host stepped in after Vernon Winfrey was unable to repay the bank on the property in Nashville, local news channel WSMV Channel 4 reports.
She reportedly paid just over $475,000 for the building and will allow her father to keep running the barber shop.
Oprah's spokesperson Nicole Nichols confirmed the reports in a statement, saying: "Oprah Winfrey has purchased Winberry Place in East Nashville, Tennessee, where her father runs a barber shop. The property was in foreclosure.
"Vernon Winfrey has been a fixture in the community for decades and will continue to manage the business on a day to day basis."
However, Vernon Winfrey's wife Barbara has complained about her stepdaughter's move, saying: "I know what is going on and I'm tired of it. I've had enough."
Explaining that she had a plan with the bank but her husband refused to sign off on a loan, she continued: "People are giving him the wrong advice and it's leaving me in a situation.
"He believes what he's told. His daughter doesn't care about the community. His daughter doesn't care about the barber shop. But I do."
Meanwhile, Vernon claimed that he has "not been getting along well" with his wife and insisted that he knows what he is doing. Barbara revealed that he has filed for divorce and expressed concerns about his health.
Watch the news report about the barber shop below: