OHSI Offers Principal Reduction and Lien Extinguishment Program
The Oregon Homeownership Stabilization Initiative (OHSI) has released a new program designed for homeowners who are on a fixed income and struggling to make their mortgage payment.
For qualifying individuals, the Principal Reduction program will pay up to $50,000 to reduce the unpaid principal balance of the mortgage so that the loan may be re-amortized resulting in a sustainable lower monthly payment. For those with mortgage balances less than $50,000, the program has the potential to pay off the remainder of their mortgage, eliminating future payments. And for those with larger mortgages, the program will significantly reduce the total amount owed and therefore lower the monthly mortgage payment.
This program is available to individuals meeting the minimum requirements below.
Household Size 125% SMI
1. Income may not exceed 125% of the Statewide Median Income Limit (SMI). Please see chart to the right.
2. Must have a fixed income that totals a greater amount than any other income sources. Eligible fixed income sources:
- SS Retirement
- SS permanent Disability
- VA Retirement
- VA Disability
NOTE: Additional eligibility requirements are applicable
This benefit is provided in the form of a no-interest, five-year forgivable loan for which a lien is recorded against the property. Those interested in applying for the program can download a submission checklist from OHSI's Principal Reduction and Lien Extinguishment webpage (www.oregonhomeownerhelp.org). NeighborImpact HomeSource staff will serve as the local intake agency for applicants to bring and submit all the required documents.
Questions: Call (541) 323-6567 or email HomeSource@NeighborImpact.org.