New state program can help some struggling homeowners

The Oregon Homeownership Stabilization Initiative has released a new program designed for homeowners who are on a fixed income and struggling to make their mortgage payment, NeighborImpact reported Tuesday.

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.

Basic Eligibility:

Household Size

125% SMI

1

$61,125

2

$69,875

3

$78,625

4

$87,375

5

$94,375

6

$101,375

7

$108,375

8+

$115,375

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

– Pension/Retirement

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 (http://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

About NeighborImpact: Since 1985, NeighborImpact has been a leader in developing solutions and bringing resources to Crook, Jefferson and Deschutes County. The agency offers a diversity of services meeting basic human needs for food and shelter, while enriching people’s lives by providing access to increased education, skills, and hope for the future. NeighborImpact is a private nonprofit organization that receives federal, state and local grants, foundation grants, and donations from individuals and businesses in our community. To learn more about NeighborImpact please visit http://www.neighborimpact.org.

NeighborImpact is a 21 Cares for Kids partner.