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
- The American Home at 250 Years: A Fourth of July for Buyers and Sellers Alike
Two and a half centuries in, owning a home is the closest thing the Republic has to a birthright. The history is worth celebrating. So is understanding a transaction most Americans go through only a handful of times, inside an industry that has quietly changed the rules between visits.
- Wire Fraud Stole $275 Million From Home Buyers Last Year. Here's the Step-by-Step That Could Save Yours.
The FBI's recovery team can freeze stolen funds, but only if you act within hours. Here's what to do before, during, and after your closing.
- The $275 Million Warning: AI Scams Targeting Home Buyers and Sellers Right Now
Five specific fraud patterns are draining closing accounts across the country, here is what each one looks like and exactly how to stop it before you lose a dollar
- The Mortgage Points Trap: Why Paying Thousands Upfront to Lower Your Rate Often Backfires
Before you hand your lender $9,000 to buy down your rate, do this one calculation or you could lose thousands
- Why Builder 'Preferred' Lenders and Title Companies Often Cost You More Than They Save
That 3% rate buydown or $15,000 closing credit looks like a bonus. Here's what's actually inside it, and what the builder doesn't want you to compare.
- Wire Fraud Is Stealing Six Figures From Home Buyers. Here's Your Defense.
In 2023, criminals stole more than $145 million from real estate transactions. The FTC and FBI can help, but only if you act within hours of discovering the theft. Here's exactly what to do.