Kentucky enforces mortgages through court action, and the statute allows a judgment for sale of the property. Court sales that bring less than two-thirds of appraised value carry a six month redemption right under KRS 426.530. The state's legal process tax statute lists a $4 tax on each mortgage, and the mechanic's lien statutes give a lien priority over mortgages created after work begins, with a six month filing deadline.
World's Fair Capital makes business purpose loans to real estate investors in Kentucky: fix and flip, DSCR rental, bridge and ground-up construction. This page covers points that most often matter to an investor there, each checked against the statute or agency that publishes it. It is general information, not legal or tax advice, and terms for any loan are set at underwriting.
Prepared by the WFC editorial team. Facts checked against the cited sources, last reviewed 2026-10-11.
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How a Kentucky loan works with us
- 1Start your application
Fill out a short application in our secure portal.
- 2Review the term sheet
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- 3Underwriting
Our team works the file and sends a clear document checklist.
- 4Closing
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What investors should know about Kentucky
Mortgage enforcement is a court sale
In a Kentucky action to enforce a mortgage or lien, the court may render judgment for the sale of the property and for the debt against the defendant personally.
Source: KRS 426.005, checked 2026-10-11
Six month redemption in some court sales
When property sold by court order does not bring two-thirds of its appraised value, the defendant may redeem within six months of the sale by paying the purchase price plus 10% annual interest and certain post-sale costs.
Source: KRS 426.530, checked 2026-10-11
State tax on a recorded mortgage
Kentucky's state legal process tax statute lists a $4 tax on each mortgage, financing statement or security agreement.
Source: KRS 142.010, checked 2026-10-11
Mechanic's lien priority over later mortgages
A Kentucky mechanic's or materialman's lien is superior to any mortgage or encumbrance created after the labor or materials began, when asserted as the statute provides.
Source: KRS 376.010, checked 2026-10-11
Deadline to file the lien statement
A KRS 376.010 lien is dissolved unless the claimant files a statement with the county clerk within six months after ceasing to labor or furnish materials.
Source: KRS 376.080, checked 2026-10-11
Earthquake ground motion highest in far western Kentucky
The Kentucky Geological Survey says the projected peak ground acceleration over the next 500 years is greatest in far western Kentucky near the New Madrid Seismic Zone. The page is marked as archived reference material.
Source: Kentucky Geological Survey, Earthquake Hazard Information, checked 2026-10-11
General information, not legal or tax advice. Confirm details with your own counsel or title agent.
For brokers
Placing a deal in Kentucky?
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Your compensation is written into the Letter of Intent your client reviews and e-signs, before underwriting begins.
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Questions on a Kentucky deal? Call 800-590-7911 (Mon–Fri 8:00 AM – 5:00 PM EST).
What to send for a first look
- Property address and type
- Purchase price, or current value on a refinance
- Loan amount requested and what it is for
- Rehab or construction budget, if any
- Current or expected rent on a rental
- The borrower's experience and estimated credit score
- Your timeline to close
Loan programs for Kentucky investors
- Hard Money Loans
- Fix & Flip Loans
- Rental / DSCR Loans
- Ground-Up Construction Loans
- Commercial Bridge Loans
- Multifamily Bridge Loans
- Small Balance Commercial Loans
- Foreign National Loans
- FlexCap Business Bridge Loans
Program availability varies by property and borrower. Business purpose loans only.
Have a deal in Kentucky?
Call 800-590-7911 (Mon–Fri 8:00 AM – 5:00 PM EST) or start online.
Nothing on this website constitutes a commitment, approval, or guarantee of financing.
Rates, fees, terms, timelines, and program descriptions are subject to change without notice.
Any investor-related or capital discussion is not an offer to sell, a solicitation to buy, or a recommendation of any security or investment product.