Closing on a home in Kentucky
The taxes, the closing rules, and the programs Kentucky buyers and sellers are entitled to — whether anyone at the table mentions them or not.
The Kentucky basics
Deed transfer tax of $0.50 per $500 of value (0.1%) — paid by the SELLER under KRS 142.050, one of the few states that fixes the payer by statute.
No attorney required — title companies and attorneys both close. You may choose your own closing provider.
Kentucky Housing Corporation (KHC) offers statewide down payment assistance as a repayable or forgivable second loan for eligible buyers.
What to watch for in Kentucky
Kentucky's transfer tax is the seller's by statute — if a contract or settlement statement pushes it to you as the buyer, that's a drafting choice someone made, and you can push back.
Property taxes are paid in arrears and prorated at closing; verify the proration uses the current assessment, especially in fast-appreciating counties across the Tennessee line.
Kentucky Housing Corporation down payment assistance is available statewide — ask your lender to price a KHC loan alongside their in-house offer before you commit.
Questions Kentucky buyers ask
Is there a transfer tax when buying a home in Kentucky?
Deed transfer tax of $0.50 per $500 of value (0.1%) — paid by the SELLER under KRS 142.050, one of the few states that fixes the payer by statute.
Do I need an attorney to close on a house in Kentucky?
No attorney required — title companies and attorneys both close. You may choose your own closing provider.
What down payment assistance is available in Kentucky?
Kentucky Housing Corporation (KHC) offers statewide down payment assistance as a repayable or forgivable second loan for eligible buyers.
Worth reading before any closing
- Wire Fraud Is Hitting 1 in 20 Home Closings. Most Buyers Have No Idea They Are the Target.
Criminals now steal $70,000 or more per incident using AI and spoofed emails. Here is the one rule that stops almost every scheme.
- The Rate Lock Math Nobody Walks You Through at Your Closing Table
Before you lock or float down, run these three numbers against your actual loan scenario
- THDA Just Raised Its Price Cap by $100,000. Here's What That Means for Your First Home in Tennessee.
If you earn under $160,720 and have been priced out of single-family homes in Nashville or Middle Tennessee, this May 2026 change may reopen the door.
- Your $72,000 Down Payment Can Vanish in One Email. Here's the Three-Step Wire Verification Protocol That Stops It.
Wire fraud hit $275.1 million in real estate losses last year. The good news: the fix is a phone call and a face-to-face confirmation.
- Wire Fraud Stole Their Life Savings Three Days Before Closing. Here's How to Protect Yours.
Two buyers lost a combined $274,000 to criminals spoofing their closing attorneys' emails. The scam is growing, your title company has an incentive to keep quiet, and the banks will not help you get it back.
- Criminals Are Forging Your Deed Right Now. Here's How to Catch It Before They Sell Your House.
Title fraud can steal your home while you sleep. The tools to catch it are free and take 20 minutes to set up.