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