Principal Reduction Program


The Principal Reduction Program is designed for homeowners who are on a fixed income and struggling to make their mortgage payment.  The program will pay up to $50,000 to reduce the unpaid mortgage resulting in a sustainable lower monthly payment.

Basic Eligibility: 

  1. Income may not exceed 125% SMI
  2. Must have fixed income greater than other income sources. Eligible fixed income sources:
    - SS Retirement
    - SS Permanent Disability
    - VA Retirement
    - VA Disability
    - Pension/Retirement
    * Other eligibility requirements may apply


Applications are accepted via Oregon Homeownership Stabilization Initiative (OHSI) website:

Once you have submitted your application NeighborImpact HomeSource staff will be your local intake agency for you to bring all the needed documentation.

This program is available in the tri-county region.

Questions: Call (541) 323-6567 or email [email protected]

Download the Principle Reduction Program Flyer 

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"People such as ourselves who worked so hard and put our blood, sweat and tears into buying and then keeping our home couldn't be happier with a program that offers the chance at keeping and maintaining our major investment." -- NeighborImpact Client

Office Locations

2303 SW First Street
Redmond, OR 97756
(541) 410-3409

20310 Empire Ave, #A100
Bend, OR 97701

(541) 323-6567

422 NW Beaver Street
Prineville, Oregon 97754

(541) 416-0107

374 SW 5th Street, Suite B
Madras, OR 97741
(541) 475-0442