Kentucky mortgage payment calculator

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Kentucky at a glance

Median home price
$279,900
Typical closing costs
2%–5% of price
Transfer tax
0.1% of sale price, customarily paid by seller
Closing custom
attorney
Homestead exemption
Kentucky's homestead exemption is NOT a broad ad-valorem exemption available to all owner-occupants (unlike FL/TX) — it is restricted to homeowners who are age 65+ or classified as totally disabled by a public or private retirement system. For the 2025-2026 assessment years the exemption is $49,100, deducted from the home's assessed value before property tax is computed (up from $46,350 for 2023-2024). The Kentucky Constitution (Section 170) requires the Department of Revenue to recalculate the amount every two years for inflation. Homeowners must apply through their county Property Valuation Administrator (PVA) office.

First-time buyer / down payment assistance programs

  • KHC First Mortgage Loan Programs (Conventional Preferred / FHA / VA / RHS)

    Kentucky Housing Corporation (the state's Housing Finance Agency) offers first mortgages through approved lenders statewide: a Conventional Preferred 30-year fixed loan (3% down, 660 min. credit score, reduced mortgage insurance) plus government-insured options (FHA, VA, RHS/USDA-Rural) with a 620 min. credit score. The FHA/VA/RHS loans are typically funded as Mortgage Revenue Bond (MRB) products, which restrict eligibility mainly to first-time buyers statewide (repeat buyers only in KHC-designated targeted areas) and are subject to county-specific income limits. Higher-income buyers who exceed MRB limits can instead use KHC's Secondary Market funding source (income capped at 80% of area median income).

  • KHC Down Payment Assistance Program (DAP)

    Second-mortgage down payment/closing-cost assistance of up to $12,500 (in $100 increments), structured as a loan repaid to KHC over 15 years at a fixed 4.75% interest rate. Must be paired with a KHC first mortgage; no liquid-asset review and no cap on borrower reserves. Available to both first-time and repeat buyers who meet KHC's Secondary Market or Mortgage Revenue Bond income limits.

Kentucky guide

Closing Costs in Kentucky: What You'll Actually Pay

  • Kentucky's real estate transfer tax is $0.50 per $500 of price — 0.1% — which comes to just $280 on the statewide median sale price of $279,900, and by custom the seller pays it, not you.
  • At that median, a 2-5% closing-cost range works out to roughly $5,598 to $13,995, with a midpoint near $9,796.
  • Transfer tax is about 2.9% of that midpoint ($280 ÷ $9,796), so roughly 97% of your Kentucky closing costs are lender, title, and prepaid items rather than taxes.

Kentucky's real estate transfer tax on a median-priced home is $280.

Not $2,800. Two hundred eighty dollars. KRS 142.050 sets the rate at $0.50 per $500 of consideration — 0.1% of the price — and on Kentucky's statewide median sale price of $279,900 that's a tax bill smaller than most people's appraisal fee. Then it gets better: by long-standing custom, the seller pays it. Unless your contract says otherwise, that $280 never touches your side of the settlement statement.

This matters more than it sounds. In a lot of states, transfer tax is the largest line on a buyer's closing statement and the reason totals swing wildly from one address to the next. In Kentucky it's a rounding error. There's no local add-on rate that doubles it, and no separate mortgage recording tax on your loan amount either.

So if Kentucky closing costs still run $5,598 to $13,995 at the median — and they do — that money is going somewhere else. Almost all of it is lender fees, title work, an attorney, and prepaid taxes and insurance. That's good news, because unlike a tax rate, most of those are things you can influence. For how each fee works in general, start with our full line-by-line breakdown of closing costs.

A note before you start: this is general education, not financial, legal, or tax advice. Every figure below is a statewide number from CalculatorByState's sourced dataset, and your county, lender, title company, attorney, and contract will all move the total. Kentucky's transfer tax rate is uniform by statute; nothing else here is. Your Loan Estimate and Closing Disclosure are authoritative — use this to sanity-check them, not to replace them.

1. What closing costs actually run in Kentucky

Against Kentucky's median sale price of $279,900, a 2-5% buyer closing-cost range gives you roughly $5,598 to $13,995, with a midpoint around $9,796. That range excludes real estate agent commissions.

Read the full Kentucky guide →9 min read · Updated 2026-08-24