Buying a home in Kentucky

Kentucky's effective property-tax rate is about 0.723%of a home's value per year, lower than the U.S. average of 0.888%. On a $500,000 home that's roughly $3,615 a year.

Full Kentucky property-tax guide →

Kentucky involves an attorney at closing, and Kentucky levies a real-estate transfer/deed tax of about 0.1% — customarily seller-paid. $0.50/$500, uniform; grantor/seller (statutory). KRS §142.050. On a $400,000 home, estimated closing costs run about $8,332–$12,432 on top of your down payment.

Full Kentucky closing-costs guide →

Kentucky runs a housing finance agency with first-time-buyer help: down-payment assistance, below-market first mortgages, and mortgage tax credits.

See first-time buyer programs in Kentucky →

What you can afford depends on your income, debts, and down payment, not just the home price. Kentucky's property taxes above feed straight into the monthly payment lenders measure against your income.

Enter your numbers once and see your real affordability range, debt-to-income, and rent-vs-buy break-even for Kentucky:

Home Buying Steps walks you through the whole process, from checking if you're ready to getting pre-approved to closing day, one clear step at a time, tailored to Kentucky where the rules differ.

• 1. Are you ready? — budget, credit, rent vs. buy
• 2. Get your finances in order — pre-approval
• 5. Making an offer — earnest money & contingencies
• 10. Closing day — every cost, line by line