Kentucky Mortgage and Refinance Rates

Current mortgage rates in Kentucky

As of Thursday, December 04, 2025, current interest rates in Kentucky are 6.19% for a 30-year fixed mortgage and 5.38% for a 15-year fixed mortgage. That’s in line with national rates, which have stayed between 6 and 7% through 2025. While mortgage rates are hard to predict, many experts believe rates in Kentucky — and the rest of the country — won't change meaningfully in early 2026.

Refinance rates in Kentucky

Mortgage refinance rates have more than doubled since the pandemic and are currently sitting between 6% and 7%. Since experts don’t anticipate a significant drop in early 2026, refinancing won’t be an attractive prospect for many homeowners (unless you have a rate much higher than 7%).

However, if you’ve been in your house for a while, you might have a good amount of tappable equity. In that case, you could consider a cash-out refinance to help you achieve other financial goals, like renovating your home or consolidating debt.

National mortgage rates by loan type

Kentucky housing market statistics and trends

Whether it's the big-city buzz of Louisville, the college-town charm of Lexington or the rural beauty of horse country — no matter where you look in Kentucky, there are plenty of reasons to plant permanent roots. As you compare different places to live, consider these helpful statistics about the state’s housing market:

• Median home sales price, Oct. 2025: $270,000
• Median down payment, Sept. 2025: $35,400
• Median days on market: 47
• Homeownership rate, Q2 2025: 72.3%

Sources: Redfin, ATTOM, U.S. Census Bureau

Mortgage options in Kentucky

• Kentucky conventional mortgages: For a conventional mortgage in Kentucky, you’ll need a minimum credit score of 620 and a debt-to-income (DTI) ratio no greater than 45%. If your down payment is less than 20%, you’ll also need to pay premiums for private mortgage insurance (PMI).
• Kentucky FHA loans: If your credit history makes you ineligible for a conventional mortgage, you could apply for a loan insured by the Federal Housing Administration (FHA). With a down payment of at least 3.5%, you could be eligible with a credit score as low as 580. (You could even qualify with a credit score as low as 500, but you’ll need to put at least 10% down.)
• Kentucky VA loans: If you’re a veteran or active-duty member of the military, you might be eligible for a mortgage guaranteed by the Department of Veterans Affairs (VA). VA loans do not necessitate a down payment or mortgage insurance, but you will be responsible for paying a funding fee ranging from 1.25% to 2.15% for the first use.
• Kentucky USDA loans: If you're buying in a rural area in Kentucky, you could be eligible for a mortgage guaranteed by the U.S. Department of Agriculture (USDA). These loans don’t require a down payment, but you must buy in a designated rural area and meet area-specific income limits.

First-time homebuyer programs in Kentucky

The homebuyer programs below are available through the Kentucky Housing Corporation, the state’s housing finance authority. These programs can help make buying a home more affordable. Here’s an overview:

• KHC Conventional Preferred Program: A conventional loan program for first-time and repeat homebuyers, the Preferred program requires 3% down, monthly mortgage insurance, a minimum 660 credit score and household income below 80% of the area’s median income (AMI). There’s no cash reserve requirement, and you could pair the loan with a down payment assistance program.
• KHC Preferred Plus 80: The Preferred Plus 80 program has similar requirements to the Preferred program but higher income limits.
• KHC Regular Down Payment Assistance Program (DAP): This loan offers up to $12,500 for a down payment. It comes with a 15-year term and a fixed rate of 4.75%.

Additional Kentucky mortgage resources

• Kentucky mortgage lenders: Read reviews of licensed lenders in the Bluegrass state.
• Kentucky first-time homebuyer resources: Get more help becoming a homeowner.
• Kentucky loan limits by county: Learn the conforming loan limit for your city or town.
• Homeowners insurance in Kentucky: Compare policies from a variety of providers.