Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between Delaware and Kentucky. Updated for 2026.
Kentucky wins 4 of 6 cost categories, making it the more affordable state for homebuyers overall. With a median home price of $210K and lower overall costs, Kentucky offers meaningful savings compared to Delaware. Both states offer first-time buyer programs — explore the state pages for full details.
Estimated PITI payments assuming 10% down, 6.5% rate, 30-year fixed mortgage with PMI.
Buying in Kentucky saves you approximately $808/month ($9,696/year) compared to Delaware, based on median home prices with identical loan terms.
Kentucky offers meaningfully lower home prices than Delaware, with median prices running 41% less ($145K difference). This gap translates to both a smaller loan and lower monthly payments. First-time buyers priced out of Delaware may find Kentucky far more accessible, particularly when combined with local down payment assistance programs.
Property tax rates are similar in both states (Delaware: 0.56%, Kentucky: 0.83%), so taxes shouldn't be the deciding factor in your relocation decision. Instead, focus on differences in home prices, insurance costs, and state-specific programs. Both states collect roughly comparable property tax revenue relative to home values.
Insurance costs favor Delaware at $1,300/year versus $2,400/year in Kentucky, a difference of $1,100 annually. While not the largest cost factor, this adds up to over $11K over a decade of homeownership. Shop multiple carriers in either state — actual premiums depend on your specific property, coverage level, and claims history.
Closing costs are a one-time but significant expense. Delaware averages $12K in closing costs (3.3% of purchase price) while Kentucky averages $3K (1.4%). Much of Delaware's higher costs come from its 4% transfer tax, which adds $14K to the median home purchase. Budget for these upfront costs — they affect how much cash you need on hand at closing.
Both states offer down payment assistance for first-time buyers. Delaware's DSHA Homeownership Loan provides Up to 5% Preferred Plus, while Kentucky's KHC Regular DAP offers Up to $6,000 repayable loan. These programs can significantly reduce your upfront costs and make homeownership accessible even if you haven't saved a full 20% down payment. Check eligibility requirements on each state's housing finance agency website — income limits and purchase price caps apply.
The bottom line: Kentucky homes cost $145K less than Delaware on average. That translates to roughly $808 less per month in total housing costs if you choose Kentucky. For most buyers, this price gap is the single biggest factor — it affects your loan size, monthly payment, and how quickly you build equity.