Estimate your monthly mortgage payment in Kentucky — principal & interest plus Kentucky property tax and homeowner’s insurance.
Buying a home in Kentucky: what to know
The typical Kentucky home is worth about $232,578 (Zillow ZHVI, August 2026), down 1.3% from a year earlier — a slightly cooling market that favors buyers. Kentucky’s median effective property tax rate is 0.74% (Tax Foundation, 2026), and the average HO-3 homeowners premium is $1,359 a year (NAIC 2022). This calculator estimates your full monthly payment — principal, interest, taxes, insurance and PMI — with Kentucky’s figures pre-filled, and includes help from Kentucky Housing Corporation’s down payment assistance programs.
Kentucky mortgage facts
| Fact | Figure |
|---|---|
| 2026 conforming loan limit (1-unit) | $832,750 |
| Median home price | $232,578 |
| Median effective property tax rate | 0.74% |
| Average homeowner’s insurance | $1,359/year |
Data as of October 2026. Sources: FHFA (2026 conforming limits), Zillow ZHVI (August 2026), Tax Foundation (2026 (2024 ACS data)), NAIC via Insurance Information Institute (2022 (published May 2025)); rate: 7.40% (Freddie Mac PMMS, week ending October 15, 2026)
Kentucky first-time buyer programs
- KHC Regular Down Payment Assistance (DAP) — Up to $12,500 toward down payment, closing costs and prepaids, structured as a repayable 15-year second mortgage at 4.75% interest. Available statewide in all 120 Kentucky counties with an eligible KHC first mortgage; minimum 620 credit score. Official site
- KHC Mortgage Revenue Bond (MRB) Program — Below-market interest rate first mortgages for first-time buyers (requirement waived in targeted areas), available with FHA, VA, USDA or conventional loans. Maximum purchase price $544,232 in 2026. Can be paired with KHC down payment assistance. Official site
How to use this calculator
Start with the pre-filled $232,578 typical home value and adjust it to your price range — remember Louisville and Lexington run well above the state average. Enter your down payment: 20% avoids PMI, but KHC’s Regular DAP can cover up to $12,500 of your down payment and closing costs as a second mortgage if you’re short on cash. Kentucky’s 0.74% effective property tax rate is applied automatically, with insurance pre-filled at the $1,359 state average. Set the rate to your actual quote; all 120 Kentucky counties share the $832,750 conforming limit, so the limit never varies by county.
Worked example: a median Kentucky home
Take a median-priced Kentucky home at $232,578. With 20% down ($46,515.60), the loan amount is $186,062.40. At 7.40% (Freddie Mac PMMS, week ending October 15, 2026) on a 30-year fixed term, principal and interest come to $1,288.26/month. Add property tax of about $143.42/month (0.74% of $232,578, divided by 12) and insurance of about $113.25/month ($1,359 a year), for a total estimated payment of $1,544.93/month. Over 30 years, total interest would be about $277,710.65. Your rate, down payment, and county tax bill will move these numbers — use the calculator above with your own figures.
What is the conforming loan limit in Kentucky for 2026?
The 2026 conforming loan limit is $832,750 for a single-family home in all 120 Kentucky counties, per the FHFA’s November 2025 announcement. Not one Kentucky county is designated a high-cost area, so the baseline applies statewide — from Louisville and Lexington to every rural county.
How much are property taxes in Kentucky?
The median effective property tax rate in Kentucky is about 0.74% (Tax Foundation, 2026 (2024 ACS data)). On a $232,578 home, that’s roughly $1,721 a year, or $143 a month — already included in the calculator above. Actual bills vary by county and city, since local taxing districts add their own levies.
How does Kentucky’s property tax system work?
Kentucky assesses real property at 100% of fair cash value, with the state rate set by the Kentucky Department of Revenue plus additional county, city and school district levies — which is why bills vary so much between counties. Homeowners age 65 and older, and those with qualifying disabilities, can claim the homestead exemption, which excludes a portion of their home’s assessed value from taxation.
What does Kentucky Housing Corporation offer first-time buyers?
KHC’s Regular DAP provides up to $12,500 as a 15-year repayable second mortgage at 4.75% interest for down payment and closing costs, usable with FHA, VA, USDA or conventional KHC first mortgages. The MRB program adds below-market rates for first-time buyers. Unlike many states, KHC assistance is a repayable loan, not a grant — factor the second payment into your budget.
Is Kentucky’s housing market rising or falling?
Kentucky’s typical home value was $232,578 in August 2026, down 1.3% from a year earlier (Zillow ZHVI) — a mild correction after years of gains. Eastern Kentucky counties saw steeper declines, while Louisville-area suburbs like Oldham County held values above $450,000, so local conditions vary widely.