Kentucky Mortgage Calculator 2026

Calculate your monthly mortgage payment for a home in Kentucky (KY). The median home price in Kentucky is $263,000, with an effective property tax rate of 0.77% (ranked #29 nationally). Use our free calculator to compare FHA, VA, USDA, and conventional loan options with real Kentucky data.

Kentucky Property Tax Information

Kentucky has an effective property tax rate of 0.77%, ranking #29 among all 50 states. The median annual property tax is $1,472 ($123/month). Source: Tax Foundation 2025.

Kentucky Loan Limits 2026

FHA loan limit in Kentucky: $524,225 (floor) to $524,225 (ceiling for high-cost areas). Conforming loan limit: $806,500 (baseline) to $806,500 (ceiling).

Estimated Monthly Payment in Kentucky

For a median-priced home of $263,000 with 20% down ($52,600), at 6.5% interest over 30 years: estimated monthly principal and interest is $1,330, plus $123 in property taxes and approximately $125 in homeowner's insurance, for a total estimated payment of approximately $1,578/month.

Kentucky Closing Costs

Average closing costs in Kentucky are $2,475 (0.91% of purchase price), ranked #42 nationally. Kentucky charges a transfer tax on real estate transactions. Source: Bankrate/LodeStar 2025.

Kentucky Housing Market 2026

Home prices in Kentucky have increased 4.5% year-over-year. Average days on market: 38. Inventory level: moderate. Currently considered a buyer's market.

Down Payment Assistance Programs in Kentucky

Kentucky offers 3 down payment assistance programs through Kentucky Housing Corporation (KHC):

  • Affordable DPA (second mortgage): 0% interest, no monthly payment. Repaid when home is sold. - Up to Up to $10,000
  • Regular DPA (second mortgage): For buyers with higher incomes. 0% interest deferred loan. - Up to Up to $6,000
  • Mortgage Credit Certificate (mcc): Federal tax credit for 25% of mortgage interest paid. - Up to Up to $2,000/year tax credit

Contact KHC: https://www.kyhousing.org | Phone: 502-564-7630

Did You Know About Kentucky?

  • Kentucky offers very affordable housing compared to national average
  • Louisville and Lexington have the most competitive markets
  • Homestead exemption reduces property taxes for seniors
  • Many rural areas qualify for USDA zero-down loans

Frequently Asked Questions About Buying a Home in Kentucky

What is the average property tax rate in Kentucky?

The effective property tax rate in Kentucky is 0.77%, with a median annual tax of $1,472. This ranks #29 among all states.

What are the FHA loan limits in Kentucky for 2026?

The FHA loan floor in Kentucky is $524,225 and the ceiling is $524,225 for high-cost areas. The conforming loan limit baseline is $806,500.

How much are closing costs in Kentucky?

Average closing costs in Kentucky are $2,475, which is approximately 0.91% of the purchase price.

Are there first-time homebuyer programs in Kentucky?

Yes, Kentucky offers 3 down payment assistance programs through Kentucky Housing Corporation, including grants, forgivable loans, and second mortgages.

Is Kentucky a good place to buy a home in 2026?

With a median home price of $263,000 and moderate inventory, Kentucky is currently a buyer's market. Home prices have increased 4.5% over the past year.

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Data last updated: 2025-11. This information is for educational purposes only and should not be considered financial advice.