property
Shared Equity Scheme Explained Step by Step
Louisville first-time buyers can now access the Metro Shared Equity Program to cut their upfront costs on homes priced up to $320,000.
How we reported this
The Louisville Metro Housing Authority opened applications for its Shared Equity Program on July 1, 2026, letting qualified first-time buyers purchase homes while the authority retains up to 25 percent equity in exchange for a lower down payment.
Rising mortgage rates and a tight inventory have pushed the median sale price in Jefferson County to $287,500 as of June, according to county recorder data, making the program relevant for households earning under $92,000 who would otherwise struggle to meet standard 20 percent down requirements.
Participants must target properties inside Louisville city limits, with priority given to those in the NuLu district along East Market Street and in Crescent Hill near Frankfort Avenue, where the authority has already closed 87 deals since the program began in 2024.
Eligibility and Application Process
Applicants first complete an online pre-qualification form through the Louisville Metro Housing Authority portal, confirming they have not owned a home in the past three years and meet income caps tied to the area median. The authority then schedules a one-hour counseling session at its office on West Broadway, after which approved buyers receive a certificate valid for 90 days. During that window they must secure a first mortgage from a participating lender such as Republic Bank, which caps the buyer’s equity stake at 75 percent of the purchase price.
Finding and Closing on a Property
Once certified, buyers work with approved real estate agents to locate homes listed at or below the $320,000 cap, often older single-family residences in the two neighborhoods mentioned above. An independent appraisal determines the authority’s equity share, which is recorded as a silent second mortgage that becomes due only upon sale or refinance. The process from application to closing averages 75 days, according to authority records that show 312 households have completed purchases since the program’s start.
Interested buyers should submit forms by August 15 to be considered for the next funding round, which draws from a $4.2 million allocation approved in the 2026 city budget. The authority maintains a list of participating lenders and agents on its website for direct contact.
This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.