FRANKFORT, Kentucky — Kentucky Housing Corporation (KHC) announces the launch of the state’s first Shared Appreciation Mortgage (SAM) program, an innovative financing option designed to help more Kentuckians overcome one of the biggest barriers to homeownership: the upfront cost of buying a home.

The SAM program provides eligible homebuyers with a 0% interest loan of up to 25% of a home’s purchase price or appraised value to help cover down payment and closing costs. In exchange, KHC receives a corresponding share (up to 25%) of the home’s future appreciation.

The SAM program does not require any payments until the property is sold, refinanced, the first mortgage is fully paid off, or another maturity event occurs. At that time, homebuyers are required to repay the original SAM loan amount along with KHC’s proportionate share of any appreciation in the property's value.

“Many hardworking Kentuckians can afford a reasonable monthly mortgage payment, but struggle to save enough for a down payment,” said Jaime Rice, Director of Single-Family Programs at Kentucky Housing Corporation. “The SAM program offers a new way of bridging that gap and provides a path to homeownership.”

Currently, the program is available for new construction homes and first-time homebuyers. Income restrictions and other eligibility requirements apply.

"The supply shortage is Kentucky's most pressing housing issue. The average first-time buyer in the U.S. is now 40 years old, and their costs are at an all-time high," said Heather Hairgrove, Housing Supply Accelerator at Kentucky Housing Corporation. "We need innovative solutions to this problem, and this program is one step toward closing that gap.”

The SAM program expands access to homeownership for Kentucky families by eliminating the need for significant savings for a down payment and reducing the amount they need to finance through a first mortgage. A larger down payment means lower monthly mortgage payments and, in some cases, eliminates the need for private mortgage insurance (PMI) – further supporting sustained affordability.

This program was established through an initial $10 million investment from KHC and aims to continue to expand opportunities via SAM loan repayments and partnerships across Kentucky.

Local partners will soon have the chance to broaden homeownership access by allocating resources to restricted funds that are tailored to address community-specific housing needs, such as an employer-assisted housing fund.

Eligible homebuyers should contact one of KHC’s SAM-approved lenders to learn more and determine whether this program is the right fit for their financial goals.

For more information about the Shared Appreciation Mortgage (SAM) program, visit www.kyhousing.org/programs/sam.