Kentucky Down Payment Assistance · Launching Soon
If you're a Kentucky first-time homebuyer searching for a way to cover your down payment, there's a powerful new option on the way. The Kentucky Housing Corporation (KHC) Shared Appreciation Mortgage (SAM) can provide up to 25% of your home's purchase price toward your down payment and closing costs — with 0% interest, no monthly payment on the assistance, and no PMI on your first mortgage.
Below I'll break down exactly how the SAM program works, who qualifies, what "shared appreciation" means for you, and how to get in line before it launches.
What is the Kentucky Shared Appreciation Mortgage (SAM)?
The Shared Appreciation Mortgage (SAM) is a new down payment assistance program from Kentucky Housing Corporation, the state's housing finance agency. It's a zero-interest, deferred-payment second mortgage designed to close the affordability gap for first-time buyers purchasing a newly constructed home in Kentucky.
Instead of charging interest, KHC shares in a portion of your home's future appreciation — which is where the program gets its name.
How the Kentucky SAM Program Works
- Zero-interest, deferred-payment second mortgage — nothing accrues and there's no monthly bill on the assistance.
- Up to 25% of the purchase price applied to your down payment and closing costs.
- Repay the assistance plus a proportional share of appreciation when you sell, refinance, or reach maturity.
- Lowers your first-mortgage loan-to-value (LTV) — removing the need for private mortgage insurance (PMI) and improving affordability.
Why SAM Is a Game-Changer for Kentucky Buyers
- Little to no money out of pocket — SAM can cover your down payment and closing costs.
- No PMI — lowering LTV removes mortgage insurance, saving you money every month.
- 0% interest and no monthly payment on the assistance itself.
- Qualify more easily — a smaller first mortgage means a more affordable payment.
Not sure which program fits you best? Compare SAM with other options in my guides to Kentucky down payment assistance and KHC loan programs, plus Kentucky FHA loans and USDA Rural Housing loans.
Borrower Eligibility
| Requirement | Guideline |
|---|---|
| First-time homebuyer | Required |
| Homebuyer education | Complete SAM-specific education before closing |
| Income limit | 80% of Area Median Income (AMI) |
| Credit score | 660 minimum |
| Debt-to-income ratio | 50% maximum |
Property Eligibility
- Single-family residence (with or without an accessory dwelling unit / ADU)
- Manufactured homes on a permanent foundation, converted to real property
- Owner-occupied duplexes
Important: All properties must be newly constructed (100% new foundation). Rehabbed or repurposed structures are not eligible.
Shared Appreciation & Repayment — Explained Simply
Because SAM charges no interest, KHC instead receives a share of your home's appreciation proportional to the help you received. See KHC's explainer on shared appreciation and their SAM FAQ.
Want to Know if You Qualify for SAM?
I'll check your eligibility and get you in line the moment the program opens. Free application · same-day approvals.
Call or Text 502-905-3708or email kentuckyloan@gmail.com
How to Get Started Before SAM Launches
- Get pre-approved now so you're ready the day it opens — start a free Kentucky mortgage application.
- Complete homebuyer education (required before closing).
- Line up a newly constructed, eligible property.
- Stay updated on the official KHC SAM page.
Also see HUD-approved housing counseling and the CFPB's home-buying resources.
Kentucky SAM Program — Frequently Asked Questions
What is the Kentucky SAM program?
SAM is a zero-interest, deferred-payment second mortgage from KHC that can provide up to 25% of a home's purchase price toward down payment and closing costs for eligible first-time buyers purchasing a newly constructed home.
How much down payment help does SAM provide?
Up to 25% of the purchase price toward down payment and closing costs, which can also remove PMI on your first mortgage.
Do I have to pay the SAM assistance back?
Yes. When you sell, refinance, or reach the maturity date, you repay the original assistance plus a proportional share of your home's appreciation.
Does SAM remove PMI?
Yes — because SAM lowers your first-mortgage LTV, it can eliminate the need for private mortgage insurance, reducing your monthly payment.
Who qualifies for SAM?
First-time buyers who complete SAM homebuyer education, meet the 80% AMI income limit, have a 660+ credit score, and stay within a 50% max DTI, buying an eligible newly constructed property.
When does the Kentucky SAM program launch?
It's launching soon. Get pre-approved now so you're ready — call or text 502-905-3708.
Call/Text 502-905-3708 · kentuckyloan@gmail.com · mylouisvillekentuckymortgage.com
