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Buying a home

Data from November 2026

Buying a home in Kentucky

A typical home in Kentucky is worth $205,600 (Average 2020–2024). The FHA limit for one unit is $541,287 depending on the county. Here is the minimum down payment each loan type asks at that price, every county’s limit, and the state’s assistance programs.

Minimum down payment Limits by county
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Typical home
$205,600
median value, Average 2020–2024
38% less than the U.S.
FHA limit
$541,287
one unit, by county
All of Kentucky uses the national floor ($541,287).
Conforming limit
$832,750
one unit, 2026 data
Above this amount, the loan is a “jumbo” loan.
Minimum FHA down payment
$7,196
3.5% of a $205,600 home
VA and USDA ask for no down payment if you qualify.

Source: American Community Survey (ACS) 5-year estimates Average 2020–2024 American Community Survey (ACS) 5-year estimates Source: FHA mortgage limits (HUD) Data from 2026 data FHA mortgage limits (HUD) Source: Conforming loan limits (FHFA) Data from 2026 data Conforming loan limits (FHFA)

Down payment

How much each loan asks up front

For a $205,600 home, the typical value in Kentucky. The minimum down payment is each program’s rule. The monthly figure is an example of principal and interest over 30 years at the 7.18% average rate (November 5, 2026): no taxes, insurance or mortgage insurance.

Your price, rate and down payment will differ: run the calculator with your numbers. Closing costs are extra.

Minimum down payment and monthly payment for a $205,600 home in Kentucky

  1. FHA Program rule

    Minimum down3.5%

    In dollars$7,196

    Per month$1,344

    With a credit score of 580 or more. Carries mortgage insurance (MIP) up front and every month.

    HUD Handbook 4000.1 (Update 18), II.A.2.a.iv — Minimum Required Investment · In effect since September 14, 2016

  2. Conventional Program rule

    Minimum down3%

    In dollars$6,168

    Per month$1,351

    3% is the lowest standard option. With less than 20% down you pay private mortgage insurance (PMI) until you have more equity.

    Fannie Mae Selling Guide B5-6-01 — HomeReady Mortgage Loan and Borrower Eligibility · In effect since January 1, 2024

  3. VA Program rule

    Minimum down0%

    In dollars$0

    Per month$1,393

    For veterans, service members and some spouses. No down payment as long as the price is not above the appraisal; charges a one-time funding fee.

    VA: Purchase loan — benefits · In effect since January 1, 2020

  4. USDA Program rule

    Minimum down0%

    In dollars$0

    Per month$1,393

    Only homes in eligible rural areas and households within USDA’s income limit. Finances the full price.

    7 CFR §3555.103 — Maximum loan amount (Guaranteed Rural Housing Program) · In effect since December 9, 2013

  5. ITIN or other Example, not a rule

    Minimum down15%

    In dollars$30,840

    Per month$1,184

    ITIN loans follow no federal rule: each lender sets its own down payment and rate, and usually asks for more. 15% is an example.

Loan limits

FHA and conforming limit in every county

In 2026 data, every county in Kentucky uses the national FHA floor ($541,287) for one unit. The conforming limit is the most Fannie Mae and Freddie Mac will buy; above it, the loan is a “jumbo”.

One unit. For 2- to 4-unit homes, each county page has the full table. Source: FHA mortgage limits (HUD) Data from 2026 data FHA mortgage limits (HUD)

Down payment help

Kentucky programs for buyers

1 verified program that put money toward the down payment or closing costs, or give a tax credit. With the source wording and the date we checked it.

Some help is a grant you never repay; other help is a second loan that is forgiven over the years or repaid when you sell. Each program’s tag says which kind it is.

See all programs

  • KHC Down Payment Assistance (DPA)

    Verified November 5, 2026

    Kentucky state corporation loan of up to $12,500 for the down payment and closing costs, repaid over 15 years as a second loan, for buyers who take a KHC mortgage

    • Repayable
    See details

What the state publishes

Kentucky rules that change the math

Exemptions that lower property tax and taxes paid when the deed is recorded, summarized from the official page each one cites.

Property tax in Kentucky

Exemptions and caps

  • Homestead exemption for owners 65 or older or totally disabled

    For the 2025 and 2026 tax periods, the maximum homestead exemption is $49,100. By law, the amount is recalculated every two years to adjust for inflation, so it changes. To qualify, you must be at least 65 years old during the tax period, or be classified as totally disabled by any public or private retirement system. The home must also be owned, occupied and maintained as your personal residence on the January 1 assessment date.

    KRS 132.810 · Kentucky Department of Revenue · Verified October 24, 2026

When the sale is recorded

  • State real estate transfer tax

    The law charges 50 cents for each $500 (or fraction) of the value declared in the deed, imposed on the seller (grantor). In a sale, the value is the full price paid or to be paid, including any liens on the property. The county clerk computes and collects the tax before accepting the deed for recording.

    KRS 142.050(1)(b), (2), (3)(a) · Kentucky General Assembly (Kentucky Revised Statutes) · Verified October 24, 2026

  • $4 state tax on each mortgage and each conveyance

    State law charges a flat $4 tax on each mortgage (and other security documents) and $4 on each conveyance of real property. Each county clerk collects it before the document is filed. The law does not say which party pays it.

    KRS 142.010(1)(c), (d), (2) · Kentucky General Assembly (Kentucky Revised Statutes) · Verified October 24, 2026

Your next steps

Where to go next in Kentucky

What you can do today, free and without giving personal information. Go in order: your numbers first, then the help.

  1. Run the numbers with your figures

    The Kentucky calculator already has the typical value, the average rate and the state’s property tax.

  2. Check whether you qualify for help

    Each program says what it gives, who qualifies and when we checked it.

  3. Talk to a counselor for free

    19 HUD-approved agencies help you prepare to buy; 10 say they serve in Spanish.

  4. Follow the steps to buy a home

    From the budget to the keys, in order.

Frequently asked questions

How much down payment do I need for a typical home in Kentucky?

For a $205,600 home (typical value, Average 2020–2024), the FHA minimum (3.5%) is $7,196 and the conventional minimum (3%) is $6,168. VA and USDA ask no down payment if you qualify. State programs can cover part of it.

Are there high-cost counties in Kentucky?

No. In 2026 data, every county in Kentucky uses the national FHA floor ($541,287) for one unit.

What is the conforming loan limit in Kentucky?

In 2026 data, the conforming limit for one unit is $832,750 in every county in Kentucky: the most Fannie Mae and Freddie Mac will buy. Above it, the loan is a “jumbo” and each lender sets its own terms.

What would the monthly payment be on a typical home in Kentucky?

With $205,600, the FHA minimum down payment ($7,196) and the 7.18% average rate (November 5, 2026), principal and interest over 30 years comes to about $1,344 a month. Tax, insurance and mortgage insurance are missing: the calculator adds them.

What down payment help is there in Kentucky?

We have verified 1 state program in Kentucky that put money toward the down payment or closing costs, or give a tax credit. Each shows the source wording, who qualifies and the date we checked it.