Oregon's Hardest Hit Program: Homeownership Stabilization Initiative

The Oregon Homeownership Stabilization Initiative provides refinance options.

In 2010, the U.S. Department of the Treasury created the Hardest Hit Fund to provide targeted aid to homeowners in those states most affected by the housing market crash. As part of this program, Oregon received over $220 million to provide assistance to struggling homeowners. Read on to learn about the different types of help available through Oregon’s Hardest Hit Fund program, called the Oregon Homeownership Stabilization Initiative (OHSI), and find out if you may be eligible for assistance. (To learn more about the Hardest Hit Fund and the various state programs funded by it, visit our Hardest Hit Fund topic page.)

The Oregon Homeownership Stabilization Initiative (OHSI)

OHSI has several programs to assist Oregon homeowners. The programs are:

  • The Loan Refinancing Assistance Pilot Project (LRAPP), which assists underwater homeowners refinance their loan.
  • The Rebuilding American Homeownership Assistance Pilot Program (RAHAPP), which also provides an opportunity for underwater homeowners to refinance their mortgage.
  • Homeowner Education and Verification (HEV) program, which is an educational tool for homeowners.

Program Details: LRAPP

This program provides a refinancing opportunity for underwater homeowners in Crook, Deschutes, Jackson, Jefferson, and Josephine counties.

To be eligible for LRAPP assistance, you must meet all of the below criteria, among other things.

  • You experienced a verifiable hardship (such as unemployment, underemployment, reduced pay or hours, decline in business earnings, death, disability, or divorce from a borrower or co-borrower) that resulted in the inability to pay your mortgage.
  • You have recovered from the hardship and are earning enough income to support a new mortgage that is based on the current market value of the home (but you are not earning more than 150% of statewide median income).
  • The property is in Crook, Deschutes, Jackson, Jefferson, or Josephine County.
  • Your property is a single-family dwelling.
  • Your original loan amount was $499,000 or less.
  • The value of your home is at least 20% less than unpaid principal balance.

Program Details: RAHAPP

RAHAPP aims to provide an opportunity for underwater homeowners to refinance their mortgage. The program provides two refinancing options:

  • 15-year mortgage at 4% fixed interest, APR 4.129%.
  • 30-year mortgage at 5% fixed interest, APR 5.077%.

To be eligible for RAHAPP assistance, you must meet all of the below criteria, among other things.

  • The home is your primary residence and is a single-family residence.
  • You must be current on your existing mortgage payments.
  • Your existing mortgages cannot be owned or guaranteed by Fannie Mae or Freddie Mac.
  • You must have negative equity in your home with a combined loan-to-value ratio between 95% and 140%.
  • You cannot have any mortgage loan payments that were 30 or more days late in the past 6 months or 30-59 days late in the past 12 months.
  • Your housing expense ratio (the ratio of your total monthly mortgage payment including principal, interest, taxes, insurance, and association fees to your total monthly gross income) must be 45% or less.

Program Details: Homeowner Education and Verification

This program is designed to provide program participants with the tools and information that will help them make the most of their assistance.

How to Apply

Go to www.oregonhomeownerhelp.org, and then “Programs” to select the program you are interested in.

For More Information

If you would like more information about OHSI or its programs, call (503) 986-2025 or email homeowner.help@oregon.gov.

To learn about federal government programs for struggling homeowners, visit our Government Foreclosure Prevention Programs topic area.

Talk to a Lawyer

Start here to find foreclosure lawyers near you.

How It Works

  1. Briefly tell us about your case
  2. Provide your contact information
  3. Choose attorneys to contact you

Legal Information & Books from Nolo