Costs to buy a house in Kentucky | Kentucky closing costs | Kentucky house buying calculator | Homeownership costs | How to save when buying a home in Kentucky
The average home buyer in Kentucky spends between $17,863 and $58,902 when purchasing a $196,550 home — the state median value.
Keep in mind, this is just the cost of buying a home. After you close, you'll still need to budget for all the ongoing costs of homeownership.
Luckily, Clever Real Estate can help make buying a home more affordable. Working with a Clever agent means you'll not only get great service from start to finish, but you could also be eligible for up to 0.5% cash back after closing. That's about $983 back on an average-priced home in Kentucky!
Put money back in your pocket with Clever Cash Back. Clever will connect you with a top, local agent and send you a check after closing.
✅ Work with a full-service realtor from a top broker
✅ Eligible buyers can get cash back
✅ Clever is 100% free, with zero obligation
Average cost to buy a house in Kentucky
| Expense | Amount |
|---|---|
| Earnest money deposit (1-3%) | $1,966 to $5,897 |
| Down payment (3.5-20%) | $6,879 to $39,310 |
| Cash reserves | $2,075 to $3,113 |
| Closing costs (2.64%) | $5,188 |
| Inspection | $260 |
| Appraisal | $245 |
| Moving | $1,250 to $4,890 |
| Total | $17,863 to $58,902 |
Buyer closing costs in Kentucky
While the other costs to buy a house in Kentucky are pretty transparent, Kentucky closing costs are a bit more nuanced. They're actually a series of smaller costs lumped together into one total. Here's a breakdown of all of the Kentucky closing costs you'll likely pay when buying a home.
| Closing cost | Amount |
|---|---|
| Closing fee | $197 |
| Recording fee | $87 |
| Title service fees | $674 |
| Origination fee | $983 |
| Underwriting fee | $600 |
| Discount points | $1,572 per point |
| Lender's title insurance | $103 |
| Owner's title insurance | $973 |
| Prorated property tax | Varies |
| Real Estate Transfer Tax | Typically paid by seller |
| Total | $5,188 |
Keep in mind, closing costs are often negotiable. However, to win the negotiation battle, you'll need a great agent who can work out a deal with the seller. Clever can match you with a top agent in your area that can get the seller to shoulder more of the above costs.
Contact us at Clever for top agent recommendations.Cost to buy a house in Kentucky calculator
Ongoing costs of homeownership in Kentucky
Unfortunately, the cost to buy a house is just the beginning. After closing, you'll officially own the home and begin paying for the ongoing costs of homeownership.
Besides the expenses outlined above, you'll also want to consider private mortgage insurance (PMI) and homeowner's association (HOA) fees.
- If you pay less than 20% as a down payment on your house, you'll probably have to pay PMI monthly until you get to 20% equity. For the average Kentucky homeowner, this is between $85 to $289 a month.
- Some neighborhoods have HOA fees for the care and maintenance of common areas. The national average is around $250 per month.
» MORE: The true cost of homeownership
Top ways to save money when buying a house in Kentucky
1. Look into better financing options
Paying off debts and getting your credit in the best shape possible before applying for a loan will help you get a better interest rate, which will lower your monthly payments for the life of the loan.
You can also shop around to compare lenders so you get the lowest fees and interest rates available. It may be a good idea to enlist the help of a mortgage broker if you're not sure how to go about vetting lenders.
2. Participate in home buyer programs Kentucky
Buyers in this state should look into the Kentucky Housing Corporation programs. They offer favorable lending options, down payment assistance of up to $7,500, and tax credits. Low-income buyers can also partake in the Federal Home Loan Bank of Cincinnati’s programs, such as the Affordable Housing Program (AHP) and the Welcome Home Program (WHP).
There are also local programs available throughout the state depending on where you buy — check out the Kentucky page of the HUD website for more details.
» MORE: First-time home buyer programs everyone should know about
3. Partner with an expert agent
Some real estate companies, like Clever, offer home buyers a percentage of their home's price back after the sale finalizes.
That means if you work with a Clever agent, you'll not only get the expertise that helps you get the best deal possible — you could also get up to 0.5% of your home price back after closing!
Clever matches you with top local agents so you can compare options and choose the best fit. And eligible buyers can get cash back after closing.
Fill out the form below and get started now. Clever's service is 100% free with no obligation.
