Kentucky conventional mortgage: limits, down payment math and the state rules

Kentucky buyers using a conventional loan face the same three questions everywhere — how much down, what it costs each month, when mortgage insurance ends — with answers that depend on the state’s $210,000 median and 0.83% effective property tax. This page works them out, then covers the Kentucky rules that touch the loan.

Conforming or jumbo in Kentucky?

$832,750 is the ceiling on a conforming one-unit loan in Kentucky for 2026. On the $210,000 median, a 20% down loan of $168,000 is 20% of the limit, comfortably conforming. Above the limit the loan is jumbo: typically a higher score, more reserves, a full appraisal and no automated-underwriting shortcuts. Every Kentucky county is in the table below; see conforming loan limits and jumbo loans.

Conforming limits for all 120 Kentucky counties

For 2026 the FHFA county list shows a single tier in Kentucky: all 120 counties at the $832,750 baseline for one unit, $1,066,250 for two units, $1,288,800 for three and $1,601,750 for four. Above those figures a loan is jumbo, whatever the county.

Source: FHFA, Conforming Loan Limit Values for 2026 (county list, mortgages acquired in calendar year 2026). Limits are for Fannie Mae and Freddie Mac loans; FHA and VA use their own county figures.

The numbers: 3%, 5%, 10% and 20% down in Kentucky

Worked at an illustrative 6.5% over 30 years on the $210,000 median. PMI uses order-of-magnitude annual rates by down payment; tax uses Kentucky’s approximate 0.83% effective rate. Your county, score and insurer will move every column.

The 3% row assumes a program such as HomeReady or Home Possible; income limits apply. Compare with FHA at 3.5% down on the FHA vs conventional guide.

How long you pay PMI here

Mortgage insurance on a conventional loan is temporary. With only the scheduled payments at 6.5%, the Kentucky buyer who put 5% down reaches the 80% request point after about 10 years and 4 months and the 78% automatic point after about 11 years and 3 months; with 10% down the request point comes after about 7 years and 11 months. Paying an extra $126 a month toward principal, or asking for cancellation on a new appraisal after two years of appreciation, shortens the clock. The full rules are on how to remove PMI.

Closing costs and taxes in Kentucky

Kentucky closings are conducted either by attorneys or by title companies, depending on the region and the lender: the Kentucky Supreme Court held in 2003 that a lay closing is not the unauthorized practice of law, but attorneys still examine title and close a large share of loans in Louisville, Lexington and the rural counties. Whoever conducts the settlement, the title examination and the deed are commonly prepared by a lawyer, and Kentucky deeds must be prepared by an attorney to be recorded. Funding is wet and closing costs run roughly 2 percent to 3 percent for the buyer.

Kentucky imposes no tax on the mortgage or the note; the county clerk collects a flat recording fee per instrument, with a surcharge for additional pages. The real estate transfer tax of 50 cents per $500 of value (KRS 142.050) is paid by the seller on the deed. One formal wrinkle: a Kentucky mortgage must state its maturity date to be recorded (KRS 382.330), so a missing date will be bounced by the clerk. Kentucky’s real estate transfer tax is $0.50 per $500 of value (0.1%), paid by the seller.

Kentucky buyer closing costs typically total 2% to 3% of the price; the transfer tax is on the seller, and closings are handled by attorneys or title agencies depending on the region.

Three Kentucky rules to read before signing

Prepayment. Kentucky prohibits prepayment penalties on high-cost home loans under KRS 360.100 and restricts them on other home loans made by lenders subject to that statute, so a penalty clause in a Kentucky owner-occupied loan should be checked against the statute’s limits rather than assumed valid. On a conforming loan the question is moot — the agencies do not accept penalties — but check a portfolio or jumbo note.

Spouses and title. Kentucky is a separate-property state but one of the very few that still recognizes dower and curtesy (KRS 392.020), which gives a surviving spouse an interest in real estate the other spouse owned during the marriage.

Homestead. Kentucky’s homestead exemption against creditors is only $5,000 of equity in a residence (KRS 427.060), among the lowest in the nation, so the exemption rarely matters outside bankruptcy planning.

The complete state layer — licensing, predatory-lending limits, disclosures, foreclosure — is on mortgage laws in Kentucky.

Frequently asked questions

What is the conforming loan limit in Kentucky for 2026?

For 2026, $832,750 (one unit) in all 120 Kentucky counties — the national baseline, with no county above it. The county table on this page lists the two-, three- and four-unit figures. Above the limit, the loan is jumbo and follows lender rules.

When can I cancel PMI on a conventional loan in Kentucky?

Federal law, not Kentucky law, sets the dates: request at 80% of original value, automatic at 78%, and in any case at the loan’s midpoint. On the median Kentucky price with 5% down at an illustrative 6.5%, that is roughly 10 years and 4 months and 11 years and 3 months respectively if you only make the scheduled payment.

Does Kentucky add anything to a conventional loan’s closing costs?

Kentucky imposes no tax on the mortgage or the note; the county clerk collects a flat recording fee per instrument, with a surcharge for additional pages. Kentucky’s real estate transfer tax is $0.50 per $500 of value (0.1%), paid by the seller. Kentucky buyer closing costs typically total 2% to 3% of the price; the transfer tax is on the seller, and closings are handled by attorneys or title agencies depending on the region.

Related: DSCR loans vs conventional for investment property: qualify on rent or on income, Seller concessions limits: how much a seller can pay toward your closing costs, Conventional loans for condos and second homes: the extra rules, Refinancing with bad credit: what is realistic below 620, 660 and 700. First home in Kentucky: programs and assistance. Hub: Conventional loan.