Principal Reduction

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

Download the Principle Reduction Program Flyer

Download information on the Principal Reduction Application Process

NeighborImpact conducts business in accordance with the Federal Fair Housing Act and all state and local fair housing laws.