Page 349
349 (07/2026) Chapter 2:Eligibility • Section 5: Financial eligibility The total value of the transaction is being repaid to the individual or spouse of the individual within three months of the life expectancy of the person (individual or spouse) according to the Life Estate and Remainder Interest Table. If jointly owned, the requirements are met if the transaction is repaid according the life expectancy of either the individual or the individual’s spouse. Payments are made in equal amounts over the term of the transaction without any deferrals or balloon payments. The contract is not canceled upon the death of the individual receiving the payments under this transaction. No one other than the estate of the lender is designated as the remainder beneficiary. » For transactions after July 1, 2006, if all the above requirements are not met: The loan balance is considered a disqualifying transfer of assets. When the disqualification period has been served, the principal and interest portion of payments made by the borrower are treated as unearned income. The outstanding loan balance is excluded as a resource. » Transactions for this section include when an individual or community spouse uses funds to: Purchase another’s mortgage Purchase a promissory note or loan from another, or Lend money via promissory note or loan. For MSP:
The interest portion (if any) of payments received from the borrower is treated as unearned income.
Payments made by the borrower against the principal of all loans are excluded as income. For all programs other than OSIPM and MSP, count as unearned income payments made to the financial group on the interest portion of a loan the group has made to someone else. Exclude payments received on the principal. For HSD medical programs, exclude loans for monthly and annual income. Oregon Administrative Rule(s) 461-145-0330 — Loans and Interest on Loans 461-140-0070 — Treatment of Excluded Assets 410-200-0015 (54) and (55) — General Definitions 414-175-0035 — Specific Financial Requirements 414-175-0030 — General Financial Eligibility Lodger income A lodger is a member of the household who is not a member of the filing group and pays the filing group for room