Shared Appreciation Mortgage (SAM)
Shared Appreciation Mortgage (SAM)
Mortgage
KHC’s Shared Appreciation Mortgage (SAM) offers up to 25% of your home’s purchase price or appraised value to help cover your down payment and closing costs.
In exchange, you agree to share a predetermined percentage of your home’s future appreciation with KHC. When you sell the home, refinance, or reach a set maturity date, you'll repay the original loan amount plus an agreed-upon share of any increase in your home's value (appreciation).
KHC will use these funds to replenish the pool for the SAM program, enabling more homebuyers to participate in it.
The SAM program is designed to accelerate the production of single-family housing in Kentucky. The barrier to produce new housing stock is greater than many families can afford; lowering that threshold can make the dream a reality for those families.
For first time homebuyers and new construction only. Income limits and other eligibility requirements apply.
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Is SAM Right For You?
- Path to homeownership. Borrow up to 25% of the home’s price or appraised value to cover down payment and closing cost.
- Lower monthly payments. A larger down payment can reduce your monthly mortgage bill and may eliminate the need to purchase private mortgage insurance (PMI).
- No appreciation = no equity share. If your home doesn’t increase in value, there isn’t appreciation to share. You repay only the original SAM principal loan and your first mortgage.
- Share future equity. Repay the SAM loan plus a set portion of your home’s appreciation in a lump sum when you sell, refinance, pay off your first mortgage, or another maturity event occurs.
- Home values can decline. If you sell at a loss, you still owe the full SAM principal even if the proceeds of the sale are not enough to pay off the first mortgage and the SAM Loan.
- Limited eligibility. Available only for new construction, first-time homebuyers, and borrowers who meet requirements.
REQUIRED: Homebuyer Education Course
This course will help you understand SAM program requirements and your financial obligation. Adequately completing this course is required for homebuyers who wish to utilize SAM. There is a cost of $35 to potential homebuyers, paid to eHome America, the training provider.
When You're Ready
A SAM-approved lender can help you with the process. Find a SAM-approved lender in our Lender Directory to get started.
Frequently Asked Questions
The SAM is a zero interest, deferred payment second mortgage designed to help first time homebuyers close the affordability gap. It can provide up to 25% of the purchase price, reducing the amount a buyer needs to borrow on their first mortgage and helping make homeownership more attainable.
The full program guides are be housed in KHC's AllRegs.
Information for Lenders
Interested in becoming a SAM-approved lender? Visit the Become a KHC-Approved Lender page for more details and attend an upcoming SAM training.