Kentucky Shared Appreciation Mortgage (SAM): Official KHC Guidelines for First-Time Homebuyers
Updated July 16, 2026. Kentucky Housing Corporation has released SAM program guidelines, the lender matrix, and program FAQ ahead of launch. The full program guide is housed in KHC's AllRegs, which is the controlling source. Guidelines, rates, and fees are subject to change without notice.
Buying a home in Kentucky has gotten harder. Prices, closing costs, rates, and mortgage insurance all push the monthly payment out of reach for buyers who could otherwise handle homeownership just fine.
Kentucky Housing Corporation's Shared Appreciation Mortgage — SAM — is built for a specific slice of those buyers: first-time homebuyers purchasing a newly constructed home in Kentucky. KHC describes SAM as a zero-interest, deferred-payment second mortgage designed to close the affordability gap. It provides up to 25% of the purchase price as a zero-interest, deferred-payment second mortgage.
It is also unlike any down payment assistance Kentucky buyers have used before, because you pay back more than you borrowed. Here is how it actually works.
Watch: The Kentucky SAM Program in 90 Seconds
Kentucky's Shared Appreciation Mortgage explained — what it covers, who qualifies, and the tradeoff nobody mentions. Questions after watching? Call or text 502-905-3708.
SAM at a Glance
| Feature | SAM Guideline |
|---|---|
| Assistance amount | Up to 25% of the original purchase price |
| Interest | Zero |
| Monthly payment | None — deferred, due at maturity |
| Loan term | 30 years |
| Eligible first mortgage | KHC HFA Preferred or HFA Advantage (conventional only) |
| Purpose | Purchase of a primary residence |
| Borrower | First-time homebuyer |
| Purchase price limit | $566,354 |
| Income limit | 80% AMI (applicant's income) |
| Maximum ratio | 50% with AUS approval |
| LTV / CLTV | 97% / 105% — 95% / 105% for manufactured homes |
| Property | Newly constructed, in Kentucky |
One point that gets missed: SAM only works with a KHC conventional first mortgage. This is not an FHA, VA, or USDA add-on. If you are set on an FHA loan, SAM is not available to you — though other KHC loan programs pair with FHA, VA, and USDA financing.
Who Qualifies for SAM?
You must be a first-time homebuyer — and KHC defines that specifically: someone who has not had an ownership interest in a principal residence within the last three years.
That is worth reading twice, because it is more generous than it sounds. You do not have to be someone who has never owned a home. If you sold your house more than three years ago and have been renting since, you can qualify as a first-time buyer again — the same three-year rule that applies across Kentucky first-time homebuyer programs.
Beyond that, the borrower requirements are:
| Requirement | SAM Guideline |
|---|---|
| First-time homebuyer | No ownership interest in a principal residence in the last 3 years |
| Income limit | 80% Area Median Income — applicant's income, not household |
| Credit score | Based on the first mortgage product (HFA Preferred / HFA Advantage) |
| Maximum total debt ratio | 50.00% with automated approval |
| Homebuyer education | KHC SAM Homebuyer Education Program, plus Freddie Mac CreditSmart Homebuyer U or Fannie Mae HomeView |
On income limits: SAM uses the 80% AMI limits, which are not the same as KHC's Secondary Market income limits you may have seen elsewhere — the 80% AMI figures are substantially lower. Note that the limit applies to the applicant's income, not total household income. Your county's exact limit is in the chart further down this post.
On credit score: You may see a 660 minimum quoted for SAM. KHC's AllRegs Borrower Eligibility page states the requirement is based on your first mortgage product rather than naming a SAM-specific score. Here's more on Kentucky mortgage credit score requirements, and let's confirm against your actual loan structure.
Note the education requirement is two courses, not one. The KHC SAM Homebuyer Education Program, plus either Freddie Mac CreditSmart Homebuyer U or Fannie Mae HomeView, depending on which first mortgage you use. KHC's materials list the deadline as prior to closing in some places and prior to loan approval in others — plan on completing it before approval so timing never becomes your problem.
SAM 80% AMI Income Limits by Kentucky County
This is the number that decides whether SAM is even on the table for you. KHC's 80% AMI income limits are effective June 13, 2026.
Two things to know before you read this chart. First, unlike most income charts, these do not change with household size — it is one limit per county. Second, and this is the one that surprises people: the limit is based on the applicant's income, not total household income. Only the income of the borrowers on the loan counts toward the cap.
Applicant Income, Not Household Income
This distinction matters more than any other line on this page, so let's be clear about it.
Most assistance programs add up everyone living under the roof. SAM does not. The 80% AMI limit applies to the income of the applicant — the borrower or borrowers actually on the loan. A non-borrowing spouse's income does not count against the cap.
In practice, that means a household bringing in well over their county's limit may still qualify for SAM, if the borrower on the loan is under it on their own.
But here's the tradeoff, and it's a real one. If you leave a spouse off the loan to stay under the income cap, you also lose their income for qualifying purposes. You cannot have it both ways. The loan has to work on the applicant's income alone — the same income that has to fit under the 50% debt ratio and carry the payment. For some couples that math works beautifully. For others it does not work at all. This is exactly the kind of thing worth modeling both ways before anyone writes an offer.
| County | 80% AMI Income Limit |
|---|---|
| Allen | $64,880 |
| Anderson | $77,040 |
| Ballard | $78,800 |
| Bath | $58,320 |
| Boone | $87,200 |
| Bourbon | $81,680 |
| Boyd | $68,160 |
| Boyle | $64,560 |
| Bracken | $87,200 |
| Breckinridge | $59,280 |
| Bullitt | $79,120 |
| Butler | $64,880 |
| Caldwell | $60,800 |
| Calloway | $65,840 |
| Campbell | $87,200 |
| Carlisle | $78,800 |
| Carroll | $63,440 |
| Carter | $68,160 |
| Christian | $74,640 |
| Clark | $81,680 |
| Crittenden | $60,640 |
| Daviess | $73,680 |
| Edmonson | $64,880 |
| Fayette | $81,680 |
| Franklin | $73,680 |
| Gallatin | $87,200 |
| Garrard | $60,720 |
| Grant | $87,200 |
| Grayson | $58,000 |
| Greenup | $68,160 |
| Hancock | $64,320 |
| Hardin | $73,680 |
| Harrison | $72,000 |
| Henderson | $63,760 |
| Henry | $79,120 |
| Hickman | $69,680 |
| Hopkins | $59,680 |
| Jefferson | $79,120 |
| Jessamine | $81,680 |
| Kenton | $87,200 |
| Larue | $73,680 |
| Laurel | $58,000 |
| Lawrence | $68,160 |
| Livingston | $78,800 |
| Logan | $62,880 |
| Lyon | $73,360 |
| Madison | $68,640 |
| Marion | $61,280 |
| Marshall | $68,480 |
| McCracken | $78,800 |
| McLean | $73,680 |
| Meade | $79,120 |
| Mercer | $72,640 |
| Montgomery | $60,960 |
| Muhlenberg | $58,000 |
| Nelson | $79,120 |
| Nicholas | $61,200 |
| Oldham | $79,120 |
| Owen | $66,320 |
| Pendleton | $87,200 |
| Pulaski | $60,240 |
| Rowan | $60,560 |
| Scott | $81,680 |
| Shelby | $79,120 |
| Simpson | $62,800 |
| Spencer | $79,120 |
| Taylor | $68,720 |
| Todd | $60,880 |
| Trigg | $74,640 |
| Trimble | $69,120 |
| Union | $61,280 |
| Warren | $64,880 |
| Washington | $66,800 |
| Webster | $58,480 |
| Woodford | $81,680 |
| All other Kentucky counties | $57,520 |
Kentucky has 120 counties and 75 are named above. If yours is not listed, your limit is $57,520.
The spread is wide. The Northern Kentucky counties — Boone, Campbell, Kenton, Bracken, Gallatin, Grant, Pendleton — top out at $87,200. Jefferson County sits at $79,120, Fayette at $81,680. At the other end, Grayson, Laurel, and Muhlenberg are capped at $58,000.
If you are close to your county's line, do not guess. How qualifying income gets calculated is rarely as simple as the number on your pay stub — see how much income you need to qualify for a Kentucky mortgage — and that calculation is worth a conversation before you rule yourself out.
What Properties Are Eligible?
SAM exists to get new homes built in Kentucky, so the property rules are strict.
| Property Type | Eligible? |
|---|---|
| Single-family dwelling | Yes |
| Single-family with one accessory dwelling unit (ADU) | Yes |
| Manufactured home on a permanent foundation, converted to real property | Yes |
| Owner-occupied duplex | Yes |
Every property must be newly constructed with a 100% new foundation.
A duplex note worth knowing. Fannie Mae's HFA Preferred permits 2–4 unit primary residences; Freddie Mac's HFA Advantage is built around one-unit properties. So if you are buying the owner-occupied duplex, which first mortgage you use is not a coin flip — it likely has to be HFA Preferred. That is a structuring decision to make early, not at underwriting.
That rules out existing homes, rehabs, flips, remodels, and repurposed structures. A house can look brand new inside and still fail this test. If the foundation is not 100% new, the property does not qualify.
The home must also be owner-occupied and located in Kentucky. Investment and rental properties are not eligible, and failing to occupy the home as your primary residence is a repayment trigger — more on that below.
Why SAM Helps You Qualify
The mechanism is simple. SAM covers up to 25% of the purchase price, so your first mortgage is smaller. A smaller first mortgage means a lower loan-to-value ratio — and a low enough LTV means no PMI. If you have been reading up on how to avoid paying private mortgage insurance, this is the cleanest version of that play available in Kentucky right now.
Stack the benefits:
- Lower first mortgage balance
- Reduced LTV
- No private mortgage insurance
- Lower monthly payment
- Stronger qualification odds on the same income
For a first-time buyer priced out of new construction, that combination can be the difference between qualifying and not.
How Repayment Works
Here is the tradeoff, stated plainly.
You make no monthly payment and pay no interest. But when SAM comes due, you repay:
- The original principal balance, plus
- A portion of the home's appreciation, proportional to the amount of assistance you originally received
KHC defines shared appreciation as the borrower's portion of the home's value increase, calculated based on how much SAM assistance was provided. That word proportional is the whole formula. If SAM covered 20% of your purchase price, you owe 20% of the appreciation.
A Worked Example
| Item | Amount |
|---|---|
| Original purchase price | $200,000 |
| SAM assistance (20% of purchase price) | $40,000 |
| Home value when SAM comes due | $240,000 |
| Total appreciation | $40,000 |
| Your appreciation share (20%) | $8,000 |
| Total repaid to KHC | $48,000 |
You borrowed $40,000 interest-free for years, made no payments on it, and repaid $48,000 out of your sale proceeds — the same way any lien gets paid off at closing.
How Is the Home's Value Determined?
In an arm's length sale, the sales price sets the value. In every other situation, a lender-designated valuation or appraisal is used — and the borrower pays for it.
What Triggers Repayment?
SAM becomes due and payable at the earliest of these events:
- Sale of the property
- Payoff of the first mortgage loan
- Payoff of the subordinate loan principal balance
- Cash-out refinance of the first mortgage
- Rate/term refinance that results in servicing transferring away from KHC
- Failure to occupy the property as your primary residence
- Filing and recording of the foreclosure complaint
Two of these deserve real attention.
Refinancing: read this carefully
You can refinance the rate and term of your first mortgage, provided it meets Fannie Mae or Freddie Mac HFA requirements and servicing stays with KHC. In that case KHC subordinates the SAM and it stays in place.
KHC will subordinate the SAM to itself, but not to another lender. So if you refinance somewhere else and servicing leaves KHC, SAM comes due — principal plus appreciation.
Cash-out refinances are not permitted at all. If you want to pull equity out, you must fully repay the SAM first, including the shared appreciation.
That is a real constraint on your future flexibility, and it belongs in your decision now, not as a surprise in year six.
Occupancy
If you stop living in the home as your primary residence, SAM comes due. You cannot convert it to a rental and leave the SAM in place.
What Does SAM Cost?
| Fee | Amount |
|---|---|
| SAM fee (to the lender) | $500 |
| Mortgage recording fee | $80 |
| Homebuyer education fee | $35 |
Modest, relative to what the program provides — but they are real closing costs and they belong in your cash-to-close estimate.
SAM Is Not a Grant
This is the single easiest thing to get wrong, so let me be direct.
SAM is deferred, not forgiven. No monthly payment and no interest is not the same thing as free money. You are trading a piece of your future equity growth for help getting into a home today.
For many first-time buyers, that is a good trade. A smaller mortgage, no PMI, a payment you can live with, and a newly built home you could not otherwise reach — that has real value, and the appreciation you share is appreciation you would not have captured at all if you could not buy in the first place.
For a buyer who expects to move in three years, or who needs the flexibility to refinance and pull cash out, or who is counting on every dollar of appreciation to fund the next move — the math may not work.
Neither answer is wrong. But it should be a decision you make with your eyes open.
SAM vs. KHC's Regular Down Payment Assistance
| Feature | SAM | KHC DPA |
|---|---|---|
| Assistance | Up to 25% of purchase price | Up to $12,500 |
| Monthly payment | None | Yes, repaid over 15 years |
| Interest | Zero | Per DPA terms |
| Repayment | Principal + share of appreciation | Amortized second mortgage |
| Property | New construction only | Broader eligibility |
| First mortgage | KHC conventional only | FHA, VA, USDA, or conventional |
| Income limit | 80% AMI | Higher limits |
These are different tools for different buyers. If you are shopping existing homes, or you need an FHA loan, or your income is above 80% AMI — SAM is not your program, and Kentucky down payment assistance for 2026 may be.
Who Should Look at SAM
SAM may be a strong fit if you:
- Have not owned a principal residence in the last three years
- Are buying newly constructed housing in Kentucky
- Are at or below your county's 80% AMI income limit, based on the income of whoever is on the loan
- Can use a KHC conventional first mortgage
- Plan to stay in the home for a good while
- Want to eliminate PMI and lower your payment
SAM is likely not for you if you:
- Are buying an existing home, rehab, or flip
- Need an FHA, VA, or USDA loan
- Are over the 80% AMI limit on the applicant's income alone
- Expect to sell or refinance soon
- May need a cash-out refinance down the road
- Are not comfortable sharing future appreciation
Frequently Asked Questions
What does SAM stand for?
Shared Appreciation Mortgage.
I owned a home before. Can I still qualify as a first-time buyer?
Possibly, yes. KHC defines a first-time homebuyer as someone who has not had an ownership interest in a principal residence within the last three years. If you sold your home more than three years ago and have been renting since, you may qualify again. This looks at your principal residence, so an investment or inherited property may be treated differently — worth reviewing your specific situation.
Does my spouse's income count toward the SAM income limit?
Not if they are not on the loan. SAM's 80% AMI limit is based on the applicant's income — the borrowers actually on the mortgage — rather than total household income. A non-borrowing spouse's income does not count against the cap. The tradeoff is that you also cannot use their income to qualify, so the loan has to work on the applicant's income alone. Worth running both ways.
Is SAM only for new construction?
Yes. All properties must be newly constructed with a 100% new foundation, and located in Kentucky.
Can I use SAM with an FHA or VA loan?
No. SAM requires a KHC conventional first mortgage — HFA Preferred or HFA Advantage.
Can I use SAM on a rental or investment property?
No. The property must be owner-occupied and in Kentucky. Failing to occupy it as your primary residence triggers repayment.
Does SAM have a monthly payment?
No. There are no monthly payments and no interest accrues. Payment is deferred until a repayment event, on a 30-year term.
Is SAM free money?
No. You repay the original principal balance plus a portion of the home's appreciation, proportional to the assistance you received.
Can I refinance if I have a SAM?
Yes, for a rate-and-term refinance that meets Fannie Mae or Freddie Mac HFA requirements and keeps servicing at KHC. KHC will subordinate the SAM to itself but not to another lender. Cash-out refinances are not permitted — you would have to repay the SAM in full, including shared appreciation.
How is the home's value determined at repayment?
In an arm's length sale, the sales price. Otherwise, a lender-designated valuation or appraisal, paid for by the borrower.
What education is required?
KHC's SAM Homebuyer Education Program, plus either Freddie Mac CreditSmart Homebuyer U or Fannie Mae HomeView, depending on your first mortgage product.
How much assistance can I get?
Up to 25% of the original purchase price, subject to the $566,354 purchase price limit and program LTV/CLTV requirements.
Bottom Line
SAM is the most substantial down payment assistance Kentucky first-time homebuyers have had access to. Up to 25% of the purchase price, zero interest, no monthly payment, and a real path to eliminating PMI on a newly built home.
The tradeoff is equally real. You share your appreciation, your refinance options narrow, and you have to stay in the home. For the right buyer, that is a very good deal. For the wrong one, it is a constraint they will feel for years.
The only way to know which you are is to run your actual numbers — your county's 80% AMI limit, your credit, your ratio, and the home you are targeting.
Let's Run Your Numbers
I can review your income against your county's 80% AMI limit — including whether structuring the loan around one applicant changes your eligibility — check your credit and debt ratio, and tell you honestly whether SAM fits — or whether KHC DPA, FHA, VA, USDA, or a conventional first-time buyer loan would serve you better.
Related Kentucky Mortgage Guides
SAM is one piece of a bigger picture. These walk through the rest:
- All KHC loan programs — every Kentucky Housing Corporation option in one place
- Kentucky down payment assistance 2026 — what is available right now, including KHC DPA
- Kentucky first-time homebuyer programs — FHA, VA, USDA, KHC, and conventional compared
- Kentucky mortgage credit score requirements — minimums by loan type
- How to avoid paying PMI — every route, not just SAM
- How much income do I need to qualify? — how lenders actually calculate it
Official Program Sources
- KHC Shared Appreciation Mortgage program page
- KHC SAM FAQ
- Fannie Mae HFA Preferred
- Freddie Mac HFA Advantage
- Fannie Mae HomeView homebuyer education
- Freddie Mac CreditSmart Homebuyer U
Joel Lobb, Mortgage Broker – FHA, VA, USDA, KHC, Fannie Mae
EVO Mortgage • Helping Kentucky Homebuyers Since 2001
Call/Text 502-905-3708 • kentuckyloan@gmail.com
www.mylouisvillekentuckymortgage.com
911 Barret Ave, Louisville, KY 40204
NMLS #57916 | Company NMLS #1738461 | Equal Housing Lender
This post is for education only and is not a commitment to lend. Program details are drawn from Kentucky Housing Corporation's published SAM program materials as of July 2026. Guidelines, rates, and fees are subject to change without notice. KHC's AllRegs program guide is the controlling source. Final eligibility, loan approval, property approval, and program availability are subject to KHC, investor, agency, and underwriting requirements. Income limits vary by county and are effective June 13, 2026. This site is not endorsed by KHC, FHA, VA, USDA, or any government agency.
