Loan Officer Success Live

For eligible Kentucky homebuyers, SAM could mean a smaller mortgage balance, a more manageable monthly payment, and a real opportunity to move from feeling discouraged to feeling ready.

Join Devin Dubuc, National Sales Director at Premier Lending, Inc., Brad Chambliss, Regional Manager at New Beginnings Mortgage Solutions, and Jaime Rice, Managing Director of Single Family Programs at Kentucky Housing Corporation, for a powerful and practical conversation about Kentucky’s new Shared Appreciation Mortgage Program.

Press play to:

🔥 Discover why SAM was created and the housing challenges it is designed to address

🏡 Learn who may qualify and which property types are eligible

💰 Hear how buyers may receive up to 25 percent of the purchase price toward principal and closing costs

📊 Explore real payment comparisons and practical homebuyer scenarios

🔍 Understand shared appreciation, repayment, and what buyers should consider before moving forward

💡 Gain valuable insights agents and lenders can use to better educate their clients

The first round of funding is limited, so buyers should not count themselves out or assume homeownership is beyond their reach. Listen now, learn what questions to ask, and discover whether SAM could put possibility back into your homeownership conversation.

#LoanOfficerSuccessLive #PremierLending #NewBeginnings #KentuckyHomebuyers #SAM #KentuckyHousing #HomebuyerEducation #HousingAffordability #KentuckyRealEstate

Creators and Guests

Host

Devin Dubuc

Coach. Dreamer. Dad. Helping you own your worth and go after what sets your soul on fire🔥

Designer

Jennifer Rodriguez

Jennifer Rodriguez is the engine behind LOS.Live and The Mortgage Giants, leading everything from graphic thumbnails and episode descriptions to cross-platform distribution. With years of experience as an Office Manager and Executive Assistant, she brings organization, strategy, and innovation to every production. Mentored by Growth Leader Devin Dubuc for the past six years, Jennifer collaborates on branding and podcast strategies that help loan officers nationwide elevate their business. Known for her positive energy, adaptability, and commitment to growth, she is the trusted voice guests connect with throughout the podcast experience.

What is Loan Officer Success Live?

This isn’t another sales tips podcast.
This is Loan Officer Success Live - where mortgage and real estate pros come to master modern growth without the burnout.

Hosted by Devin Dubuc, Loan Officer Success Live is a deep dive into the psychology, strategy, and systems that build legacy-driven businesses in today’s market. Whether you're a high-performing loan officer, a rising agent, or an entrepreneur scaling fast, you’ll learn how to attract clients, grow income, and lead with brand, not brute force.

Real conversations. Tactical playbooks. No cold-call bro-hype. Just clarity, confidence, and creative firepower.

You don’t need a script. You need a strategy. Welcome to Loan Officer Success Live

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Disclaimer: The information is intended to be viewed for informational purposes only. The content contained herein is not guaranteed or endorsed by the company, or any company mentioned, nor is this content meant to be an offer of credit. The information contained in this video may not be wholly or at all applicable to every situation or jurisdiction. You are strongly encouraged to consult your professional mortgage advisor before acting upon any information in this video. The information provided is for use as a training tool only. The information is not intended, nor should it be relied upon for any other purpose.

All right, guys, welcome back to Loan Officer Success Live sponsored by Premier Lending. We have a special show today. Kentucky just introduced a new path to homeownership, but the first round of funding is limited. So we're going to talk about, Sam, what it is, who can use it and how quickly do Kentucky homebuyers need to act? Today, we're getting all those answers directly from Kentucky Housing and from one of the lenders helping families use the program. So welcome to the show, Jamie Rice here from Kentucky Housing. And she's going to talk about how it works, what it was built for, and where it could go next. And we've got Brad Shambless from New Beginnings, a division of Premier Lending. And he's here to show us what SAM could mean for real families trying to purchase a home. Welcome to the show, guys. Great to have you here. Thank you, Devin. All right. Sorry, I'm having problems with one of my channels, but that's okay. We're just going to move on and act like it's working. So, Jamie, I'm going to start with you. Before we explain the program, what problem was Kentucky Housing trying to solve with SAM? And let's talk about what SAM means too, right? What's that acronym stand for? sure the shared appreciation mortgage program so i'll start by saying a few years ago we commissioned a housing supply study for our state we were seeing that home prices were going up we were serving the same dollar amount of production every year but we were serving fewer families and that was just showing us what the home prices were doing and also rentals were hearing that you know folks there aren't enough rentals there aren't enough for sale units So we commissioned a study and we put a number to it. And we know that by the year, we're going to be just shy of three hundred thousand units short of in our state, both in homeownership and rentals. So we were thinking if we, uh, Keep doing what we do every year. We're impacting it, but we're not going to put a dent in that three hundred thousand dollar or three hundred thousand unit number. So, you know, what can we do that would put new supply in our state, but also address affordability? Because we are the state housing finance agency. We were created to help that low to moderate income Kentucky family. So, you know, we can get the supply out there, but it's not going to do anything if the prices still are climbing. So that came to us in the form of the shared appreciation mortgage program. I love it. I love it. So we're solving problems. That's what we're doing. We're solving problems, bringing new programs to the market, and helping making homes more affordable, right? Mm-hmm. Absolutely. And Dan, I want to throw something in there. I want to say something about Kentucky housing too, because we are very fortunate in the state of Kentucky. Now, Jamie, I'm going to brag on you and your team a little bit because you all are amazing. You know, there's a lot of state programs. We do loans in a lot of different states. But here in Kentucky, we're fortunate to have a group that is actually responsive to what the real needs are of of of Kentuckians and to actually proactively going out there and identifying this to the point of what's the problem, what it is, it's affordability. And why can't we have more people in the market and to come up with real solutions to be able to solve a real problem for families that are trying to get out there and to buy their first home. And we're fortunate to have not just a team that are attentive to it, but are putting good practical solutions in place to be able to address those issues. So thank you, Jamie, for doing that. Thanks, Brad. Your payment is on its way for that. No payment. Yeah. Well, so let's just talk about it. So, Sam, was it inspired by programs in other states, or is this something new that Kentucky built specifically for Kentucky families? We modeled our program after California Housing Finance Agency. We there's an HFA is what I'll say. We work similarly, but also differently. But what we do really well is we share good ideas. And so if we see somebody doing something that we like, we're not competing with them. So we'll call them up and say, hey, tell us about your program. So I'll give a shout out to Ellen Martin, who's the homeownership director for Cal HFA. california has the benefit of they've received just under a billion dollars in state appropriations over the last few years for their program we're standing this up on our own but it's a great product and we haven't even said what it is but california is doing it we know michigan detroit is doing it we know um utah colorado just announced one for their teachers so it's out there it's but it's more west of us so we're thrilled to do this with our own money to start with but you know there is a plan for future funding needs for this program but what it does is the Shared Appreciation Mortgage Program gives low to moderate income home buyers a twenty five percent down second mortgage loan that can be used all to pay down on the principal of the purchase of their home or most of it for principal and also cover closing costs. But it sits as a silent second. So there's no interest. There's no monthly repayment. But what they do when it is, they do have to pay it back eventually. And when they pay it back, they pay back that original principal balance that they borrowed. And then whatever percentage of the original purchase transaction we have helped them with, that same percentage of the future appreciation, they will pay back as well. If the home does not appreciate, they only owe us back that original principal balance. If the home depreciates, they just owe us back that original principal balance. So they're sharing a portion of the appreciation of the home, but in return, they're getting a sizable amount that they can utilize towards down payment and closing costs so that we can make homes affordable and give people an opportunity to purchase that may not have had that opportunity before. Exactly. And so this is a form of a down payment assistance program. Is that correct? Correct. Yep. Now, Kentucky has more than one down payment assistance program. Is that also correct? We do. We have an amortizing second mortgage, our regular down payment assistance that's up to twelve thousand five hundred to help with your minimal down payment and help with closing costs. That's repaid over ten years at four point seven five percent interest. So we're not replacing. This is an addition to. Correct. I would say that folks who can get into the market now, the better option for them is to get into the market without the SAM program. Because if you can afford to buy today, then you can realize one hundred percent of that future appreciation. But we are seeing nationally the age of a first time home buyer is at a historic high, forty years old nationally. And it's just getting worse. And the home, the median price to purchase a home is just growing, growing, growing. So what we saw was, you know, where are the you're establishing you're getting into your first job you're you're wanting you're thinking about buying a home and maybe you're stuck between paying market rent but you also can't afford this market or if you can find something that you can afford it's going to need a lot of repairs or updates and that's honestly where a lot of first-time home buyers struggle when there's no landlord to call and you've got to replace an hvac or you've got to replace a roof so with our first round of funding We are restricting it because we want to address supply. We're restricting it to newly constructed properties. So that should eliminate the high energy costs and the immediate repairs that have to come into the program for that first time home buyer. Now, Brad, let me ask you a question from a lender's perspective. Where do you see buyers getting stuck most often today? And I know you're primarily in Kentucky. Why do you think this program matters? Oh, it matters a lot because It begins with affordability. It begins with the budget. I mean, it's all about the budget. When a family sits down, you know, they look at their family, they look at the number of bedrooms they need, the number of bathrooms they need, where they need to have the home located, what area, what schools, all of that factors in, but then they have to turn around and they look at the reality of it. How much can I afford? And, you know, instead of getting a two bedroom or a three bedroom that fits their family needs, they have to settle for less. And sometimes they become discouraged. They try to rent. you know we know rent is just throwing money away sometimes it's necessary obviously but it's not an investment it's not an investment in your future it's not an appreciating asset that you would have so so we want home ownership and to help with the home ownership but it all begins with the budget and then i'm excited because jamie's got some some you know showing some comparisons of payments When they opened up the gates yesterday, we wanted to be the first, but there was somebody else that registered the first loan for this because we've got borrowers that are excited about this because literally it lowered their payment by a two hundred thousand dollar home. So the loan amount was for one hundred and fifty thousand. It lowered their payment by four hundred dollars. That's a game changer. That's a car payment. That's books, that's school clothes, that's shoes, that's groceries. I can actually buy a home and feel comfortable and confident that I can afford to live here. It took a whole group of people that had become discouraged about getting into the home market to and put possibility back into the conversation. And that's what just makes me very excited about that because this is a practical program because this program is partnering with borrowers to be able to buy a home. Kentucky Housing has done that for years with partnering with the down payment assistance, the tax credits, all the different programs that they've had. But this is truly a partnership that they're going into that home. And the person buying the home is full controlling interest in that property. But they're profiting, not profiting, they're partnering. And they will profit from the appreciation of the home. So I'm sure that goes back to funding more families and putting more people into homes, which is the whole idea behind the program. A hundred percent, a hundred percent. They did give hope for people that may not have had that, that hope there just because the affordability aspect of it. Well, let's talk about this, Jamie. So Sam, it's brand new. I think Brad left the cat out of the bag yesterday was kind of opening day, so to speak. And that's going to be my question. When did it officially launch and can eligible buyers start using it today? Yeah. Yes. Yes. And yes, we launched yesterday. We have three whole reservations. So we launched it with our own dollars. We had ten million dollars that we launched it with. And we're estimating if the median purchase price is around two fifty, then we might use five. If we use twenty five percent per loan, we think we'll be able to serve about one hundred and fifty, one hundred and sixty properties for this first round of funding. But where it gets really exciting is we know there are local municipalities who see their housing supply gap as an impediment to their economic development. And they may have the resources, they may want to do something with it, but they don't know what they can do this is what they could do. They could partner with us and we could take their pool of funds and restrict it in our loan origination system where if you were in Jefferson County, for example, and we had a pool of their funds, we could restrict it in the system so only the properties that meet Jefferson County's pool of funds would be eligible for you guys to reserve. And we can do that and track it, report it. And again, when those repayments come in, we're not doing this as a moneymaker. We're doing this as a mission purpose. So when those funds come back in, it's just going to recycle back out to other homebuyers. Well, I know we talked a little bit about this before, but I want to make sure that we identify this. So and Brad, this may be a great question for you. If somebody is hearing about this for the first time, right, and maybe they think they can't buy a home or they've been reluctant because the affordability, how would you explain to them how this program works? Before I answer that question, let me go back real quick on what Jamie was saying, because I think this is really important. If you're listening to this and you've got people that you know that may have influence in your communities, politicians, business owners, factories, I mean, county officials, it is so important that a program like this, what Jamie just said, that this is something that's applicable and scalable to each community in the state. And this is a program that that will benefit if you if this is something that you believe in is homeownership. This is a way that you can directly impact your local communities on on making that that that available, because there's so many government programs or so many things that go out there. They're just throwing money away and they're trying to create something that that that they hope works. Homeownership works. value home values go up in value taking the money that that investment in your communities that you're investing in the people that are investing in the the communities so that that there's a return on that if the property value goes up the homeowner wins and the community wins and everybody a part of that does so that's that's an exciting thing to be able to have that property okay so How do I explain it to somebody who's sitting down with me? The layman's terms. Yeah. The layman's terms. You've got somebody that's going to partner with you. You know, and instead of you having to carry the weight on a full two hundred thousand dollar mortgage, you have an opportunity to be able to partner with somebody to be able to that they're going to pick up twenty five percent up to twenty five percent. You can do whatever amount that you want. And you and you and you and you're carrying the rest. It's not that complicated. I mean, it's a very simple. We have other shared appreciation. We have AIM programs. There's a lot of other programs that are really, really good that aren't just limited to first time homebuyers, but they're pretty complicated. And it's hard to explain. This one's easy. You buy seventy five. They buy twenty five. You get seventy five percent of the appreciation. They get twenty five percent appreciation. And you pay. You get seventy five percent of the payment. You get you get seventy five percent of payments. And that frees up that money to be able to buy other things and to invest in other things for your family. So that's how I explain it. When I first called Brad, we were talking, we have vetted this program as we've been building it. We did not want to build anything that, you know, it's been twenty years, twenty four years since I've taken a loan application. So it's like we don't want to put something out there. And then you guys are like, we can't do anything with this. So we have put this in front of our lenders many times and we've said, poke the holes in it. We want this to be something that you guys can sell, that it brings value. And so. I was surprised you didn't equate it. Cause when I first called you about it, you're like, well, that's like this bull I was going to buy. And I was worried that I had a buddy that was going to go in on it with me. And you equated it so beautifully that I got tickled with that. So I keep thinking about the, you buy three fourths of the bull and we'll buy one fourth of the bull. Yeah. Yeah. Yeah. It's what's pressure. I got my bull up here too. So. Yeah. And today we're going to give no bull. No bull. No bull. But it's pressure tested, right? You've gone to the people that will be presenting the product, and you've asked for them to give their insight as to what's going to work and what's not going to work. And then you've put it down to a deliverable product that's actually going to help people purchase a home that other people can understand, right? And that's important. And what we're talking about understanding, I know you mentioned this earlier on, but How much assistance can the buyer receive? We know it's twenty five percent. Is there a limitation to that? And then what all can those funds be utilized for? So it's twenty five percent of the purchase price by statute as a housing finance agency. We have a purchase price limit of five hundred sixty six thousand three hundred fifty four dollars that by statute. That's as high as we can go on the purchase price of a home. But we can offer up to twenty five percent. And that full twenty five percent can be used for the principal down payment or if you want to use twenty percent toward down payment and save five percent to cover your closing costs. If you don't have funds of your own to cover those closing costs, because that could be ten, fifteen thousand dollars right there. So so you can use it for a combination of the two. We started. With that twenty percent number, because when you this goes with the Fannie or Freddie conventional first mortgage loan. So when you pay down twenty percent, you eliminate the need for that private mortgage insurance. So not only are you paying less per month just because you're having to pay interest on eighty percent of the purchase instead of ninety seven percent of the purchase. But you also don't have that additional fee of that private mortgage insurance. So, again, it talks about affordability. Well, and if I did my math, right, what you're saying is, is that they're eligible for up to right over a hundred and forty one thousand dollars for the right property. Right. If they're going to purchase at the max. property. That's, that's, that's no small potatoes, right? That's a massive investment. And this means they're not having to come out of pocket with that money, which gives them the ability to have more financial stability, or even invest their money or keep their money invested in other things that will grow with them along with the mortgage, right? So let's talk about this. What does the homeowner agree to in exchange for receiving the assistance? So we understand it's shared appreciation. But how does that look? What does that look like? So we have a required, very specific, we partnered with eHome America to do a SAM specific home buyer education course that's available online. They have to complete that prior to the loan being approved. It goes into a lot of detail about that Share of appreciation, how it's calculated, what that repayment looks like. We really want to be transparent and clear up front with them on that course. And we modeled it after our California friends. But it's very detailed and it's but it's a lot of information, but it there's you have to educate the person. They're taking an education course to really learn and understand what exactly, you know. this looks like, what that investment is going to be and how they're going to fare out at the end of the rainbow, right? Make an educated decision. This is a good program, but there are pros and cons and you need to make an educated decision. On top of that, we're also going to send an annual reminder to them. We'll be servicing those loans. And so annually they'll get a notice from us that reminds them you've got this shared appreciation component. If you're curious about how much your home value is worth, here are the steps you would take to figure that out. And just, you know, here's what you would need to do if you wanted to pay us off early, if you wanted to cap that appreciation and start to realize it fully on your own. So again, we don't want to hang out there and get big repayments back. It would be great to roll it out to other people. But the point is to get someone in a home and a success story would be that they sell it and purchase up or they pay us off early and that money goes back into the pool for the next family. That's fantastic. So just to understand, is Kentucky Housing becoming a co-owner of the property, or does the buyer remain in full control of their home? They are in full control. I mean, it's their home. We have a second mortgage that goes on the property. We are certainly not on their deed as a co-owner. We're speaking in those terms, but no, we're not a co-owner. We just have a second mortgage. First mortgage will be on the property and a second mortgage specifically for the SAM property. Yeah. So it's no different than a bank holding a mortgage on a transaction, right? You still have full control over your property, what you do with it, how you do with it. But at the end of the day, you've got a lien that's held against it based upon the terms of the shared appreciation, correct? Correct. Yep. So Brad, I got to ask you this. When you first learned about Sam, what immediately stood out the most to you? What immediately stood out the most? Yeah. Well, that's the cow story. Well, I mean, it's the fact that, I mean, this is over and beyond any, we've got a lot of down payment assistance program in the state. And we have other programs that are state bonded, you know what I'm saying, that are available to not just first-time homebuyers. You know, anybody who wants to get a hundred percent loan, we can help facilitate that. Our mortgage revenue bond is already, I think, one of the very best. I mean, the rate's five point seven five with a down payment assistance to fifteen year amortization, four point seven five on the second mortgage. That's strong in this market. That's very, very strong. And as the market adjusts, Kentucky housing will adjust to that as well. But even as good as that is, if this is a product that, you know, because we're going to sit down with somebody and we're going to go through what the best fit is for that person, because this may not be like Jamie was saying, this may not be the best way. You know, why trade off twenty five, twenty five percent of the future appreciation of your property if you don't have to? But sometimes it's a necessity to be able to facilitate owning the home that's going to serve your family the best. But even as good as the Mortgage Revenue Bond Program is, this program is really over the top with making that home affordable. You're talking about getting rid of the mortgage insurance, I mean, Jay, we got the visual, Devin. Yeah, Devin, can you pull that up? I'd love for Jamie to share. That's on my agenda. Show that, because that is a big deal. Four hundred dollars is a lot of money on a two hundred thousand dollar house. I do want to mention something, though, because, you know, again, we talk about who this is for. And, you know, there's a lot of consumers that maybe feel like they're stuck in the rent race and they can't get out of that. And they look at buying a home and the payment's too much or they don't have the down payment. But what they're not also looking at a lot of the times is that appreciation factor that we keep talking about, right? Like homes will typically appreciate three and a half to five and a half percent, depending on market per year, sometimes more, sometimes less, but it's, it's there year after year. And effectively what we're talking about is if you stay in a rental property and you go to your, you know, whoever owns the property and says, Hey, in three years, first off for the next three years, I don't want you to raise my rent at all. Okay. and at the end of that three years and i'm just using three years as the the magic number it can go on for longer right i want you to share twenty five percent of the appreciation that you had in that property with me uh or in this case seventy five percent of that appreciation that you had in that property with me we'll reverse it because it's rent what do you think that landlord is going to tell you right no we're going to raise rent every single year and you're not getting any appreciation for living on this property right whereas the person who utilizes a program like this can now use the state's money to go out and purchase a property that's going to appreciate every single year right year after year if it doesn't we have terms for that where they don't uh have to pay any type of an appreciation rate and they're gaining equity for the first time in a lot of places ever which is long-term financial wealth and that's what makes programs like this one So impressive. So you guys talked about bringing the payments up. So let's talk about this and let's show people real time what that could look like. So here it is, Brad, I'm gonna let you explain. Well, actually, Jamie, if you want to, I mean, I'm sure happy to do that, but Jamie, if you'd like to go through that. I can, and if you want to chime in, but this example is a two hundred thousand dollar purchase price home. And it's important to note, we do require taxes and insurance to be part of the house payment. But these numbers do not reflect that because taxes and insurance will be. The same regardless of what loan type you are taking out. So this is just principal and interest payments. But that first column is a conventional first mortgage with a SAM second paying twenty percent down and covering closing costs. So, yeah, the purchase price is two hundred thousand, but you're financing one sixty and the principal and interest payment on that is a thousand twenty four dollars. There is no second mortgage payment because it's that SAM structure. It's deferred until you repay it. So it's a thousand twenty four dollars and fifty cents, not counting taxes and insurance on a two hundred thousand dollar purchase price. If we were to take that same purchase price and run it through the conventional product, that is a three percent down with mortgage insurance. That principal and interest payment goes up to a thousand one thousand five hundred forty one dollars and eighty four cents. And if we were to do it with an FHA loan where you're required to come up with three and a half percent down, And you've got mortgage insurance, FHA's mortgage insurance on there. That's one thousand three hundred thirty one dollars and sixty nine cents. So, again, this program is limited to eighty percent area median income for our this round of funding. So if you were a Hardin County, that is a seventy three thousand six hundred eighty dollar annual income. If you're below that, you can choose between the thousand dollar payment or the fifteen hundred dollar payment or the thirteen hundred dollar payment. And I'll just pop that up there just for comparison factor. We have a few other. Two hundred and fifty K option, a three hundred K. And a four hundred K just to put things into relation as to how that would look utilizing the SAM EPA program. So this is huge. Brad, anything you want to point out? I've got the slide pulled up. Well, I mean the numbers say it all. I mean it's – and actually I was wrong. It's not four hundred. It's five hundred dollars difference. So it's a game changer. It is an absolute game changer for the people that qualify for it. Is it for everybody? Not necessarily. I mean, because you got to be below that median income. It's got to be a first time home buyer. You know, it's got to be a new construction, which I think is another brilliant aspect of it because it's helping people in Kentucky. It's helping builders in Kentucky and manufacturer home dealerships in Kentucky to be able to move their inventory because it's all important part of the process. If the builders aren't healthy or the manufacturer home dealerships aren't healthy, then they're not able to scale up as the affordability changes to be able to get more homes out there. It's all a very important part of this process. Each one of us plays a role. Jamie plays a role with the Kentucky Housing. We play a role as lenders. The builders play a role. The buyers play a role. It's all a part of a community. And working in unison, we have to get creative on taking the hand that we're dealt, the economy that's there, the inflation that we have, the diesel costs that we have, the building costs that we have. It all factors in together. And the ultimate goal is how do we put people in homes and homes that they can not only just buy, but they can afford to keep and to be able to have a successful life. and you create memories in that home and an appreciating value. So it all works together. And we didn't talk about the property types because it has to be newly constructed, but that can be site-built home, manufactured homes. It could be condos. It can be owner-occupied duplexes where you live in one side and rent out the other, or you got a family member that lives on the other side. So You know, Brad and the loan officers who are participating in this program, when you go to find a loan officer, not every KFC loan officer can do this. They had to complete a specific training and they had to sign an addendum before they could offer it. We have roughly forty in the state that can do it. When you go to our Web site and find a lender, of course, you got Brad right here, I will say. But there's a tab specifically for the shared appreciation mortgage program that has all the companies that are working with this. Well, you know, and you mentioned a mortgage hack right there. I want to throw that out there. You talked about a two unit where you live in one and occupy one side of the property, right? And then you have somebody else that lives and occupies in the other part of the property. So let's combine those two things together. Now you've got a shared appreciation mortgage where twenty five percent of the home is being paid for by the state of Kentucky. Now, of course, there is an appreciation at the share at the end. But you put somebody next door. and you have them cover a portion, if not the entire payment, allowing for you to either live partially rent-free or completely rent-free while gaining equity through the shared appreciation mortgage. So the savvy buyer, there's a lot of, I know we're not supposed to talk about investors today, but there's a lot of investors out there, right, that use this to start acquiring wealth and acquiring properties where they have somebody else paying that rent. So I just want to point that out, that if you're really thinking about this and you're in a position where you could do a multi-unit, wow. They have to live in it, so they're not. Well, a hundred percent. You live in one and then you lease out the other. But every homeowner has to assume an investor mindset. You want to begin with the end in mind. How is that possible? the investment that you're making, yes, it's serving your family needs, but also how is it going to appreciate? And when you go to sell that property, move on to your next home or whatever your next step is, you know, you're treating that as an investment because it is an investment. That's right. And for most folks, that's your most important investment that you're making is in your home. So I love that you brought that up about the duplexes because it is absolutely brilliant. It truly is. It's a mortgage hack. It's something I talk about on my channel all the time. How can you build wealth or equity utilizing somebody else's money? We just opened that up back in last winter, again, because of supply. We can't restrict. If we by statute can do an owner-occupied duplex and we know that there is a supply issue, then we don't need to have any You have to occupy and we want to make sure that we make that very present here. You have to intend to occupy one of those units to be able to utilize the program. What are the biggest misconceptions that people have about a shared appreciation mortgage? Because I know there are misconceptions there. Can I answer that? Please. people when they when when i the first knee-jerk reaction when they they hear about this program or any kind of a a a shared equity program uh is that they're giving something up you're really not it's predatory it's it's uh it you know it's an it's an investment and and really this program and programs like this is the only way because when you go to buy a home The only thing that you can do to make that home more affordable is that you put more money down. If you don't have more money to put down, well, that's not an option. You make more money. Well, that's great. But, you know, you got to talk to your boss or your wife about that. And, you know, so if those two aren't an option, what do you have left? The equity in your home. Well, what equity do you have when you're buying a home? Not anything yet, but you know that you're going to have future equity. History proves that to us, that you're going to have the equity there. These programs allow you to take future equity to be able to invest that in your monthly mortgage payment now. So you're not giving up. What you're doing is it's facilitating being able to take future equity to spend it now for when you need it. know let's talk about i love that you said that brad and for those either watching on the mobile site you can probably see i've got a back to the future time machine over here right so essentially what brad just said is that you can take this time machine into the future and you can say hey future self i want to borrow money from the mortgage that you have now and then you travel back in time and you utilize that money as the down payment to purchase the home that you know you're going to be building equity in in the future And that's really what's happening here is you're taking your future equity to purchase the home so that you can make an investment and make the home more affordable for yourself right now. You know, we got a good question. Sorry, we're just going to go to Troy here. And he says, how does it work if you're self-employed? And Brad, I think that's a question for you because we know you can do it. No, it's all the same thing. We would calculate the income just the same as we always would. You know, self-employed borrowers have a few more hoops to jump through than if you're just a W-W-two. It's not hard. we just have to go about what's on your tax returns. Average in two years and it's the same for every lender. We go through the same hoops. We have to check the same boxes on that. It's all what's in black and white on that. But that's a great opportunity to be able to sit down and let's go through the tax returns and see what the affordability is there as well. and i think it's the same for every lender and technically you're right brad but the right lender is going to make sure that they cross their t's and dot their eyes when they analyze that income and the wrong lender can definitely underperform that you don't qualify with self-employed income Perhaps that's accurate, right? I don't know. I'm not looking at your personal situation. But a lot of the times that's not a hundred percent accurate. It's because the person that analyzed your income didn't understand it. And even if they don't put you in a position to be able to qualify today, a great lender can help you identify what you need to do in your future tax filings so that you can potentially qualify in the future. So don't count yourself out. Just yet, right? If you do want some information on that, we're going to be popping up a QR code at the end of the podcast, so stay to the end. And you can get more information on the program, as well as have direct access to Brad, who I can assure you is one of the better LOs, one of the best LOs in the industry. That's why we've chosen to represent him here on the show today. Most of the time what happens is, because all lenders have the same guidelines and criteria. Now, some lenders will have overlays. Plug for Kentucky Housing, they go by agency guidelines. We can talk about that more later, different podcasts, but that's very important. It is. But the most important thing that what separates loan officers from the exceptional, from the just participants, is not just knowing... to answer the questions, but make sure they're asking the right question. Amen. Because if you ask the right, if you ask the wrong question, you'll always get the wrong answer. And it's starting with the right questions to, to where, and every, every person is different. Every need is different. Every family is different. And you have to be able to ask the questions that's going to be able to customize the, the law. Oh, Oh, We were on a great train of thought. Well, Brad, we lost you a little bit there, but let's go ahead. We're kind of running a little over on our original planned time. So, Jamie, I'm going to ask you some questions, and let's kind of fire through these pretty quick. So I know you mentioned before, but how much funding was committed for the initial rollout? Ten million. Ten million. And as of today, are there still funds available? We have a whopping three loans locked. But, yes, there are still funds available. I think it will pick up steam, but yes. And at what point is the funding actually reserved for the buyer? Lenders will lock that up front. We hold it and we do a seventy five day lock and lenders can extend that if needed. But they are holding it like as soon as you sign a contract, you should talk to your lender first to be pre-qualified. Keep them in the loop as early as possible and throughout the process so that as soon as you've got that contract, they can go in and lock those funds. And if I hear you're correct, you said seventy five days, which typically a loan doesn't take seventy five days to close and transact. However, we're doing new construction. So we're giving ourselves more time for the builder to complete that project. Is that correct? Correct. Our three loans that are locked so far are all newly constructed. So they were already that definite agency definition usually is up to twelve months old and unoccupied. So that's where we're seeing that go initially. And we thought, well, you know, are we adding to supply at that point or are we not? But the thought is, if that builder is sitting on that property and can't unload it, then we can help take that off their hands and then maybe that would entice them to build another property. That's fantastic. What happens if somebody qualifies after the first round of funding? After the funding's gone? After it's exhausted. Well, we hope that we don't. Well, we're going to exhaust it. This money will go quickly. But we're hoping that we can have those partnerships with the local municipalities, and we're looking for other ways to fundraise to keep this going because we really see this as a viable option. We can't do anything to lower the cost to build a home. We're not within our power, and we don't have this just unlimited supply of money that we could just give away and not get it back in some form to reuse it. So this is the best option that we came up with. And we're also hoping to be able to demonstrate a working model, a successful model that we can take to our state legislators and say, hey, we all know there's a supply crisis. You guys know it as well. Here's a here's a plug and play. We're ready to do this. And this works. We just need some money. I love it. Jamie, can you share with who they need to reach out to for somebody that's listening that wants to. to to just reach out to you at the state or to who would they talk to about setting up something for their community sure um it's been myself but heather hairgrove is also the uh we don't have it on here but it's heather h hairgrove h-a-i-r-g-r-o-v-e at ky housing dot o-r-g And I just put up, so the website is kyhousing.org, kyhousing.org. And so if you're watching, you can see it running across the bottom of the screen. You should be able to find all your contacts there, get phone numbers. So if you want to reach out to somebody there, you can. And Brad, you represent New Beginnings Mortgage. So if you want a lender that can help you answer some questions, Uh, Brad is certainly qualified. You can find Brad over at begin mtg.com. That's begin mtg.com. That's running across the bottom of the screen as well. Uh, and then you can also find Brad on Facebook at Brad dot shambles, uh, one that's Brad dot shambles one. Um, he's, he'll be the gentleman with the, the, uh, the cattle, uh, as the backdrop because he's a cattle farmer as well. And then you can also find Kentucky Housing on IG at KY Housing. And then we're going to throw up a QR code at the end. So if you do want more information, you want some of the slides that we have here, you just want to understand a little bit more about the program, You can scan that and you can learn as much as you want and just get started, right? Just get started becoming a homeowner, which I think is really, really, really exciting stuff. So let's do this. Jamie, what would success look like one year from now? we have blown through this initial ten million and we have lots of partners who have set up restricted funds or we've got unrestricted funds from the state and we are just putting lots of new units and we're adding to the home ownership supply in our state. I love it. Brad, biggest mistake buyers make before talking with a lender? Selling themselves short. Not really exploring all the possibilities that are there. Learn what the questions that they need to ask. Lenders need to ask the right questions. Buyers need to ask the right questions. When somebody comes to our office and we sit down with them to go through their application, we never say no. It may be a later question. but it's never a no because we're going to give you a game plan on what to do. Uh, if you do this, this, and this, you're going to be a homeowner. Okay. So we don't want you to get discouraged. Rome wasn't built in a day. Sometimes it takes time. That doesn't mean that it's not worth it because it is worth it. It's worth the effort to be able to put yourself in a position. This program starts off a six sixty credit score is what you need. Not everybody has a six sixty credit score to be able to qualify. So it's a you know, what do we have to do to be able to do this? Maybe it's not on this wave of funds, but preparing yourself to be ready when that opportunity is there. And what do you have to do to get ready to be able to buy a home? That's important. You know what I see, Brad, is I see you at your conference table with a big piece of map out, right? And you're literally drafting out this map to homeownership right there with your clients so that they know exactly what they need to do to get to the treasure right at the end. And that's homeownership. I'm going to call you Captain Brad Shambless. I'm here to navigate you to homeownership using this amazing program that Kentucky Housing has brought to consumers. Jamie, closing question. For a Kentucky family watching today who believes homeownership is out of reach, what do you want them to understand about this opportunity? It's new for us. It's innovative. It's different, but all good things but we really want them to make sure that they take the course they educate themselves they understand exactly how this works and then if if they determine that this is the path for them find a good lender and i will say we we work with some of the best lenders in the in the country and you know, we've got great lenders and they're, they're there available. Brad is here as an example, work with a great lender and get into that home. If you're not able to do it today, though, they will give you, you know, not today, but here's what you need to do. Brad, what is the first step someone should take if they want to find out whether Sam is going to be the right fit for them? Just call us. Reach out to us. Start a conversation. That sounds way too easy. And that's it. That's it. Sounds weird. Well, guys, as I mentioned earlier today and Brad, you just said it, you know, just reach out. If you want to reach out to Brad or if you just want to get some more information on this program, if you scan this QR code, it's going to take you to a quick survey. Just ask you a couple of quick questions and it will immediately send you a PDF of of all the information you need to know about Sam. So guys, thank you so much for joining in today. We appreciate having you here. Jamie Rice, thank you for representing the state of Kentucky and bringing this amazing product to market. Brad, brother, as always, great to see you. And I think that's it. Until the next time, we will see you guys then. Take care, everybody. See you guys. Bye.

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