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Kentucky Mortgage Guides

KY
State Mortgage Guides

Kentucky Mortgage Guides 2026

This complete Kentucky mortgage guide covers FHA loan limits across all 120 counties, Kentucky Housing Corporation down payment assistance, USDA rural loans, VA resources for Kentucky’s veteran and Fort Campbell communities, and a full closing cost breakdown — all in one place.

~0.75%Est. median effective property tax rate
$541,2872026 FHA limit (all 120 counties)
$122,800USDA income limit (1–4 person)
Up to $12,500KHC down payment assistance

Everything You Need for a Kentucky Home Purchase

Six in-depth guides covering every aspect of getting a mortgage in Kentucky — from loan program selection to what you’ll pay at closing.

2026 Kentucky Mortgage Snapshot

FHA Loan Limits (2026)

  • All 120 Kentucky counties: $541,287 — the 2026 national floor
  • Includes Jefferson (Louisville), Fayette (Lexington), and the northern Kentucky counties
  • No Kentucky county is designated high-cost for CY2026
  • Conforming limit is $832,750 statewide. Verify any county with HUD’s lookup tool.
Full FHA limits →

Down Payment Assistance

  • KHC Down Payment Assistance: up to $12,500, in $100 increments
  • Structured as a second mortgage, repayable over a 15-year term
  • Shared Appreciation Mortgage: up to 25% of price, zero interest, deferred — first-time buyers, new construction only
  • Available to KHC first-mortgage borrowers who meet purchase price and income limits
First-time buyer guide →

Property Taxes

  • Median effective rate about 0.75% — among the lower rates nationally
  • Median real estate taxes paid: $1,544 on a median home value of $205,600
  • Figures are statewide medians from the 2024 ACS 5-year estimates, not an average rate
  • Rates vary by county, city, and school district
Full tax guide →

Closing Costs

  • Transfer tax: $0.50 per $500 of value — about 0.1%, and the seller pays it
  • County clerk recording: $50 for a deed, $80 for a mortgage
  • Buyer closing costs typically run 2–5% of the purchase price (Est.)
  • Kentucky’s transfer tax is among the lowest in the country
Full closing cost guide →

Buying or Refinancing in Kentucky?

Kentucky pairs a low effective property tax rate with one of the lowest transfer taxes in the country, and every county sits at the national FHA floor — which makes program selection, not loan limits, the decision that matters most here.

  • ✓ Check KHC down payment assistance and current limits at kyhousing.org
  • ✓ Confirm your county’s 2026 FHA limit with HUD’s lookup tool
  • ✓ Compare FHA vs. conventional using our loan program guides
  • ✓ Estimate your total cash to close with our closing cost guide

Coming soon · No obligation · Educational first

Kentucky Advisor Network — Coming Soon

We currently connect buyers with licensed mortgage advisors in Florida and Utah. Join the waitlist and we’ll let you know the moment Kentucky advisors are available.

Join the Kentucky Waitlist