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Lexington proposes $1M for shared appreciation home loans

Published · Homebuyer update · By the DPA Finder editorial team

Mayor Linda Gorton proposed Shared Appreciation Mortgage loans for 15 to 20 first-time buyers in Fayette County, built on Kentucky Housing Corporation's statewide SAM program.

On October 27, 2026, Lexington Mayor Linda Gorton proposed Shared Appreciation Mortgage loans, and the Urban County Council supported setting aside $1 million, which the city says is enough to assist 15 to 20 first-time homebuyers. The city will work with Kentucky Housing Corporation (KHC), which launched the program statewide this summer.

According to the city, the loan is a second mortgage of up to 25% of the home's purchase price with no interest or monthly payments. Applicants must be at or below 80% of median income, complete a homeownership counseling class, and buy in Fayette County. It is a proposal; the city says to contact any lender that participates in the KHC program to learn more.

KHC's statewide Shared Appreciation Mortgage (SAM), launched July 27, 2026, is a 0% interest, deferred payment second mortgage of up to 25% of the purchase price or appraised value for down payment and closing costs. It is for first-time homebuyers buying new construction only, income limits apply, and a homebuyer education course ($35, paid to eHome America) is required.

Instead of interest, you repay the original amount plus a share of the home's appreciation when you sell, refinance or pay off the first mortgage, or another maturity event occurs. KHC says if the home doesn't gain value you repay only the original amount, and if you sell at a loss you still owe the full SAM principal.

To see what that share could cost in dollars at different home price paths, try our free shared appreciation calculator at dpafinder.org/shared-appreciation-calculator/. Results are projections based on the price change you enter.

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