Shared Appreciation Mortgage (SAM)
Shared Appreciation Mortgage (SAM)
Mortgage
Kentucky Housing Corporation (KHC) may soon offer a Shared Appreciation Mortgage (SAM) program. Please check back for more details.
To be alerted when more information about the SAM program is available, sign up for our eGrams.
What is It?
A home loan where the borrower receives a lower interest rate, downpayment assistance, or closing cost help in exchange for giving the lender a percentage of the home’s future value increase (appreciation).
How It Works
- The Exchange
KHC will pay your full down payment for a newly constructed home, eliminating PMI on the loan and lowering upfront costs. In return, you agree to a share in future appreciation clause that gives KHC a stake in your home's value. - The Payout
When you sell the home, refinance, or reach a set maturity date, you pay back the original loan balance plus a predetermined percentage of the home's appreciation. KHC will use these funds to replenish the pool for the SAM program, enabling more homebuyers to participate in it.
Advantages
The SAM program is designed to enable KHC to accelerate the production of single-family housing in Kentucky by being exclusively available for newly-constructed homes. 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 same families.
As KHC replenishes SAM program funding with the payout from homebuyers, the program can grow and become available more widely.
FAQs
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 guide will be housed in KHC's AllRegs.
Information for Lenders
More information about becoming a SAM-approved lender will be available soon. Visit the Become a KHC-Approved Lender page for more details or attend our webinar.