The state has significantly increased both the maximum limit for a borrower’s income and the maximum purchase price for homes. The household income limit in Jackson County is now $58,600 and the purchase price limit is $217,687.

The median selling price (half sold higher, half lower) of homes in Jackson County in February was $185,500, according to Medford appraiser Roy Wright.

In addition, the program’s mortgage rates are currently 4.5 percent for a 30-year fixed-rate mortgage — among the best available. Program loans that offer cash to cover a portion of closing costs (3 percent of the mortgage amount) are currently at 5 percent.

"More homes and households than ever before qualify for our program’s record low rate, putting home ownership within reach for more low- and moderate-income households," said Bob Repine, director of Oregon Housing and Community Services, which administers the program.

To be eligible, borrowers must live in the home as their principal residence. Borrowers also must be "first-time" buyers or not have owned a house within the last three years. An exception to this requirement is made for certain "target areas," which include Josephine County, Ashland and portions of Medford, among others statewide. A "recapture fee" may be required if the home is sold within nine years and the borrower exceeds an adjusted income limit (the limit increases 5 percent per year) at the time of the sale.

The below-market rates and closing assistance are made possible through the sale of tax-exempt bonds issued by OHCS. The program helped 1,018 Oregon families purchase a home in 2003. Home ownership offers significant tax benefits because mortgage interest is deductible.

Detailed information on the loan program is available at www.oregonbond.us on the Web, or by calling 877-788-2663.