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347 (07/2026) Chapter 2:Eligibility • Section 5: Financial eligibility Oregon Administrative Rule(s) 461-145-0320 — Life Insurance 410-200-0015 (54) and (55) — General Definitions 414-175-0035 — Specific Financial Requirements Loans and repayment of loans This policy covers proceeds of loans, loan repayments and interest earned by a lender. If the proceeds of a loan are used to purchase an asset, the asset is evaluated under the policy for that specific asset. In ONE, income addressed in this section is coded on the Unearned Income screen: • Unearned Income Category – Loan • Unearned Income Type – there are several different types to choose from, select the one which is applicable to the type being reported:
Loans (Borrower)
Loans: Lender Interest Payments
Loans: Lender Principal Payment
Reverse-annuity Mortgage: Cranston-Gonzalez National Affordable Housing Act Service Payments For OSIPM and MSP: • A “negotiable loan agreement” means a loan agreement in which the instrument ownership and the whole amount of money expressed on its face can be transferred from one person to another (i.e., sold) at prevailing market rates. • A “Bona fide loan agreement” means an agreement that: • Is enforceable under state law; and • Is in effect at the time the cash proceeds are provided to the borrower; and • Includes an obligation to repay and a feasible repayment plan. For all programs: A “reverse-annuity mortgage” means a contract with a financial institution under which the financial institution provides payments against the equity in the home that must be repaid when the homeowner dies, sells the home or moves. A “reverse-annuity mortgage” is sometimes referred to in the private sector as a reverse mortgage or a home equity loan. The proceeds of a home equity loan or reverse-annuity mortgage are considered loans. Note: A reverse mortgage can be received by a person age 62 or older as a loan against the equity in their home. The loan is due for repayment when the borrower permanently moves out or sells the property or upon death of the borrower. A loan is defined as: • For all programs except OSIPM, MSP and SNAP, a written loan agreement signed by the borrower and lender. The written agreement must stipulate a repayment plan and be signed and dated before the receipt of money.