Partner with KHC to Create a Local SAM Program
Kentucky Housing Corporation (KHC) is actively partnering with municipalities, foundations, employers, and non-profit lenders/CDFIs interested in contributing to the Shared Appreciation Mortgage (SAM) program to create their own restricted pool
The "Plug and Play" Advantage
Choosing KHC's SAM program provides a seamless, turnkey solution for local partners. All you have to do is provide your contribution and set your program parameters. KHC handles the rest:
- No Exhaustive Setup: Skip the extensive legal structuring and program research.
- No Fund Management: We administer the restricted pool on your behalf.
- Turnkey Deployment: Instantly leverage KHC’s existing, statewide lender network to deploy your funds.
- Zero Backend Administration: KHC handles all ongoing loan and mortgage servicing.
Note: Partner contributions to the SAM program are not tax-deductible.
Customize Your Restricted Pool
Partners retain control over how their contributions are utilized. You can customize your restricted pool by selecting from a list of targeted parameters:
- Location: Target a specific county, census tract, or development.
- Income Limit: Set specific area median income (AMI) thresholds for your borrowers.
- Construction Type: Choose to fund new construction, existing construction, or both.
- Homebuyer Status: Restrict funds to first-time homebuyers or open it to repeat homebuyers.
Program Details
The SAM program provides a powerful tool to close the affordability gap for your targeted homebuyers. The program features:
- Generous Assistance: Available funding of up to 25% of the purchase price (typically structured as 20% for the down payment to eliminate mortgage insurance requirements, and 5% for closing costs or additional down payment).
- Zero Monthly Burden: 0% interest with no monthly payment.
- Deferred Repayment: Borrowers repay the SAM principal and a pro-rata share of the home's appreciation only at the time of a triggering event (sale of the home, a cash-out refinance, or paying off the first mortgage).
How Far Does Your Contribution Go?
The impact of your restricted pool depends on the number of homebuyers you wish to assist.
Assuming an average purchase price of $250,000:
- A SAM mortgage covering 25% of the purchase price equals $62,500 per homebuyer.
- A $1,000,000 contribution will assist 16 homebuyers in your target demographic.
Ready to Partner with KHC?
If you are ready to make a high-impact contribution to housing in your area without the administrative burden, we are ready to help.
A member of KHC's staff will contact you shortly after submission.