State Buyer Guide
Down payment assistance, Kentucky housing programs, closing cost estimates, and what to know before buying — including from FSBO sellers.
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The Kentucky Housing Corporation (KHC) is your primary source for below-market mortgage rates and down payment assistance in Kentucky. Programs are available through approved lenders — not directly through the HFA.
Paired second mortgage for down payment on a KHC first mortgage.
Mortgage Credit Certificate providing a federal tax credit on annual interest.
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Compare Mortgage Rates →On a $205,000 home: approximately $4,715
Kentucky charges a transfer tax of $0.50 per $500 (0.1%) of consideration — one of the more affordable transfer tax rates.
Kentucky is an attorney-closing state. A licensed Kentucky attorney must review the title and conduct the closing. Budget $500–$900.
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Find an Inspector →As an attorney-closing state, Kentucky requires a licensed real estate attorney to conduct your closing. You'll also want one to review your purchase agreement.
Nolo has been the go-to legal resource for DIY buyers since 1971. Their real estate guides explain purchase agreements, contingencies, and closing in language anyone can understand.
Browse Legal Guides →Get a real estate attorney to review your purchase agreement or help you draft an offer letter — often for a fraction of traditional legal fees.
Get Legal Help →Download state-specific purchase agreements, addenda, and disclosure forms — written by attorneys, ready to use in your state.
Browse Real Estate Forms →Kentucky first-time buyers can access programs through the Kentucky Housing Corporation (KHC) (https://www.kyhousing.org/), including the KHC Regular Down Payment Assistance (Up to $10,000 at 3.75% for 10 years, or 0% deferred option) and the KHC Homebuyer Tax Credit (MCC) (25% of annual mortgage interest, up to $2,000/year for the loan life). Federal programs like FHA loans (3.5% down) and USDA loans (0% down in eligible areas) are also available.
Closing costs in Kentucky typically run 2.3% of the purchase price. Transfer tax: 0.1% ($1 per $1,000). Kentucky charges a transfer tax of $0.50 per $500 (0.1%) of consideration — one of the more affordable transfer tax rates.
Kentucky is an attorney-closing state. A licensed Kentucky attorney must review the title and conduct the closing. Budget $500–$900.
The median home price in Kentucky is approximately $205,000. Property taxes average 0.83% of assessed value annually.
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