# Kentucky mortgages: payments, KHC down payment help and the deed tax

> Kentucky mortgage numbers: KHC down payment loans up to $12,500, a 0.71% effective property tax rate, the deed transfer tax and payments on a median home.

URL: https://mail.mortgage-math-us.com/location/kentucky/  
Last reviewed: 2026-10-29 · By the MortgageMath US Editorial team

## Quick answer

The median Kentucky home is worth $226,000 and costs about **$1,714 a month** with 10% down at the 7.24% national average rate, including property tax at the state’s effective rate of 0.71%. Kentucky Housing Corporation lends up to $12,500 for the down payment and closing costs with its first mortgages, repaid over 15 years. The state deed transfer tax is 0.1% of the price, and owners 65 or older or totally disabled can exempt $49,100 of assessed value.

## Key facts

| Fact | Value | Source | As of |
|---|---|---|---|
| Median home value in Kentucky | $226,000 | [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25077?g=040XX00US21) | 2024 ACS 1-year |
| Median household income | $64,526/yr | [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B19013?g=040XX00US21) | 2024 ACS 1-year |
| Effective property tax rate | 0.71% | [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25103?g=040XX00US21) | 2024 ACS 1-year |
| KHC down payment assistance, up to | $12,500 | [Kentucky Housing Corporation: Down Payment Assistance](https://www.kyhousing.org/page/down-payment-assistance) | Oct 29, 2026 |
| KHC minimum score (FHA, VA, RHS) | 620 | [Kentucky Housing Corporation: Eligibility](https://www.kyhousing.org/page/eligibility) | Oct 29, 2026 |
| Deed transfer tax | 0.1% | [KRS 142.050](https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=43160) | Jul 15, 2014 |
| Homestead exemption, 65+ or disabled | $49,100 | [Kentucky Department of Revenue: Homestead Exemption](https://revenue.ky.gov/Property/Residential-Farm-Commercial-Property/pages/homestead-exemption.aspx) | 2025–2026 assessment years |

## Kentucky prices and paychecks

Kentucky’s median home value is the 6th-lowest of the 50 states and DC, and its median household income of $64,526 is the 5th-lowest. Together they leave the median home at 3.5 times the median income, lower than the US figure of 4.4.

*Kentucky compared with the US (Census ACS 2024 1-year)*

| | Kentucky | United States |
|---|---:|---:|
| Median home value | $226,000 | $360,600 |
| Median household income | $64,526 | $81,604 |
| Effective property tax rate | 0.71% | 0.89% |
| Median gross rent | $998/mo | $1,487/mo |
| Median owner costs with a mortgage | $1,453/mo | $2,035/mo |
| Homes lived in by their owners | 68.1% | 65.3% |

The median Kentucky owner with a mortgage spends $1,453 a month on housing, $455 more than the median renter’s $998. Those owner costs include loans taken out years ago at other prices and rates, so they can differ a lot from buying today: the example below comes to $261 more than that median.

## The monthly cost at the median price and at the median income

> **Worked example: 10% down, 30-year fixed at 7.24%**
>
> | | Median Kentucky home | Price the median income supports |
> |---|---:|---:|
> | Price | $226,000 | $213,000 |
> | Principal and interest | $1,386 | $1,306 |
> | Property tax at 0.71% | $134 | $126 |
> | Insurance at $4.90 per $1,000 (Freddie Mac national average) | $92 | $87 |
> | PMI (midpoint of Freddie Mac’s range) | $102 | $96 |
> | **Monthly total** | **$1,714** | **$1,615** |
> 
> The second column keeps housing at Freddie Mac’s guideline of 30% of the median household income. That price is $13,000 below the median home value; owning the median home on these terms takes about $68,600 a year.

Kentucky’s effective property tax rate of 0.71% is below the US ratio of 0.89% — the 21st-lowest in the country — so tax adds less to a payment here than the national ratio would. Your own rate, insurance quote and debts will move the numbers; use the [payment calculator](https://mail.mortgage-math-us.com/tools/mortgage-payment-calculator/?price=226000&down=10&tax=0.71&state=KY) and the [affordability calculator](https://mail.mortgage-math-us.com/tools/affordability-calculator/?state=KY&income=64526).

## Kentucky Housing Corporation’s down payment loan

Kentucky Housing Corporation (KHC) makes first mortgages through participating lenders and pairs them with down payment assistance:

- **Amount.** Up to $12,500 for the down payment and closing costs.
- **Repayment.** It is a second loan, paid back to KHC over 15 years, so it adds a second monthly payment.
- **Who can use it.** Anyone who gets a KHC first mortgage and meets KHC’s income and purchase price limits.

On the median $226,000 home, the full $12,500 equals 5.5% of the price. It covers the $7,910 FHA down payment with $4,590 left for closing costs. Taking less than the maximum keeps the second payment smaller, so borrow what you need rather than what you can.

## KHC loan rules and limits

KHC’s minimum credit score is 620 for [FHA](https://mail.mortgage-math-us.com/loan-types/fha-loans/), [VA](https://mail.mortgage-math-us.com/loan-types/va-loans/) and USDA Rural Housing loans, and its purchase price limit is $566,354 — about 2.5 times the state’s median home value. Income limits vary by program and county; KHC publishes a grid, and a participating lender can tell you which programs your household qualifies for. The [first-time buyer programs guide](https://mail.mortgage-math-us.com/first-time-buyers/programs/) explains how these state loans compare with conventional options.

## Kentucky’s deed transfer tax

Kentucky charges a real estate transfer tax of 0.1% of the value when a deed is recorded — about $226 on the median home. The legal default is that the seller pays it, but your contract can divide it differently. Lender fees, title insurance, recording and escrow deposits make up most of the rest; the CFPB’s typical 2%–5% range is $4,520–$11,300 on the median home. The [closing cost estimator](https://mail.mortgage-math-us.com/tools/closing-cost-calculator/?state=KY) includes the Kentucky tax.

## Homestead exemption for owners 65 and older or disabled

Kentucky’s homestead exemption applies to owners who are at least 65 or have been classified as totally disabled. For the 2025–2026 assessment years it removes $49,100 from the assessed value — 22% of the median home’s value. At the statewide effective rate that is worth roughly $349 a year; your local rates decide the real figure.

> **Tip: Apply with your county PVA**
>
> File the application with the Property Valuation Administrator in the county where the home is. Owners who qualify through disability generally reapply each year unless their disability is classified as permanent or service-connected.

If you still rent, the [rent vs buy calculator](https://mail.mortgage-math-us.com/tools/rent-vs-buy-calculator/?state=KY&price=226000&rent=998) compares the two paths with Kentucky’s median figures.

## Frequently asked questions

### What is the property tax rate in Kentucky?

Census data put the median Kentucky homeowner’s bill at $1,611 a year, about 0.71% of median home value, compared with 0.89% nationally.

### Does Kentucky have down payment assistance?

Yes. Kentucky Housing Corporation lends up to $12,500 for down payment and closing costs to buyers who use a KHC first mortgage and meet its income and price limits. It is repaid over 15 years.

### What credit score do I need for a KHC loan?

KHC’s minimum is 620 for FHA, VA and USDA Rural Housing loans. Other KHC programs have their own credit requirements.

### How much is the transfer tax in Kentucky?

The state real estate transfer tax is 0.1% of the value, about $226 on the median $226,000 home. The legal default is that the seller pays it.

### What is the homestead exemption in Kentucky?

Homeowners who are 65 or older or totally disabled can exempt $49,100 of assessed value for the 2025–2026 assessment years. Apply with your county Property Valuation Administrator.

### How much income do you need to buy a house in Kentucky?

The median $226,000 home with 10% down costs about $1,714 a month at today’s average rate. Keeping that under 30% of gross income takes about $68,600 a year.

## Sources

- [Freddie Mac Primary Mortgage Market Survey](https://www.freddiemac.com/pmms) — 30-year fixed rate, national weekly average (Week of Oct 29, 2026)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25077?g=040XX00US21) — Median value of owner-occupied homes (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B19013?g=040XX00US21) — Median household income (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25103?g=040XX00US21) — Effective property tax rate (median taxes ÷ median home value); Median real estate taxes paid by homeowners (2024 ACS 1-year)
- [Freddie Mac Research](https://www.freddiemac.com/research/insight/homeowners-insurance-costs) — Average homeowners insurance premium per $1,000 of home value (2023 data)
- [Freddie Mac My Home](https://myhome.freddiemac.com/buying/breaking-down-pmi) — Typical PMI cost, low end; Typical PMI cost, high end (Oct 28, 2026)
- [Freddie Mac My Home](https://myhome.freddiemac.com/blog/homebuying/how-much-can-you-afford) — Freddie Mac guidance: housing costs below this share of gross income (Jan 22, 2026)
- [Kentucky Housing Corporation: Down Payment Assistance](https://www.kyhousing.org/page/down-payment-assistance) — KHC Down Payment Assistance, up to; KHC Down Payment Assistance repayment term (Oct 29, 2026)
- [CFPB](https://www.consumerfinance.gov/owning-a-home/prepare/figure-out-how-much-you-want-to-spend/) — Minimum FHA down payment; Typical closing costs, low end (share of purchase price); Typical closing costs, high end (share of purchase price) (Oct 28, 2026)
- [Kentucky Housing Corporation: Eligibility](https://www.kyhousing.org/page/eligibility) — KHC purchase price limit; KHC minimum credit score, FHA, VA and RHS loans (Oct 29, 2026)
- [Kentucky Department of Revenue: Homestead Exemption](https://revenue.ky.gov/Property/Residential-Farm-Commercial-Property/pages/homestead-exemption.aspx) — Kentucky homestead exemption, age 65+ or totally disabled (assessed value exempt) (2025–2026 assessment years)
- [KRS 142.050](https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=43160) — State real estate transfer tax (Jul 15, 2014)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25077?g=010XX00US) — Median value of owner-occupied homes (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B19013?g=010XX00US) — Median household income (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25103?g=010XX00US) — Effective property tax rate (median taxes ÷ median home value) (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25064?g=040XX00US21) — Median gross rent (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25064?g=010XX00US) — Median gross rent (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25088?g=040XX00US21) — Median monthly owner costs, homes with a mortgage (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25088?g=010XX00US) — Median monthly owner costs, homes with a mortgage (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25003?g=040XX00US21) — Share of occupied homes lived in by their owners (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25003?g=010XX00US) — Share of occupied homes lived in by their owners (2024 ACS 1-year)
- [Kentucky Housing Corporation: Down Payment Assistance](https://www.kyhousing.org/page/down-payment-assistance)
- [Kentucky Housing Corporation: Eligibility](https://www.kyhousing.org/page/eligibility)
- [Kentucky Department of Revenue: Homestead Exemption](https://revenue.ky.gov/Property/Residential-Farm-Commercial-Property/pages/homestead-exemption.aspx)

_General information, not financial advice._