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 Rate Lock Trap: What Homebuilders Won't Tell You About New Construction
If your new construction home isn't finished before your mortgage rate lock expires, you could lose your deposit AND face a payment jump of $500 or more per month. Here is what you need to know before you sign.
- That $100-a-Month Savings on Your Mortgage May Be Sitting in Your Credit File Right Now
VantageScore 4.0 is now live for conventional loans — here's how to find out if your lender is hiding a lower rate from you.
- Your Right to Negotiate Real Estate Commissions Just Became Real. Here's How to Use It.
The NAR settlement that took effect August 17, 2024 gave home buyers and sellers something they always had on paper but rarely used: real power to negotiate agent commissions. Here's what changed, what it means for your closing, and exactly how to use it.
- Deed Theft Is Spiking. Here's What Could Disappear From Your Closing If You're Not Watching.
Complaints jumped 240% in two years. A new NYC office is fighting back. Here's how to protect your title before someone steals your house out from under you.
- Your FHA Pre-Approval Just Jumped $17,000
FHA loan limits for 2026 are now $541,288 baseline — up $17,000 from 2025. Here's what that means for your buying power and what to do before you lock your rate.
- 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.