Escrow and Taxes

Escrow is an account that holds funds to pay yearly property taxes and mortgage insurance premiums. If funds for payment of taxes and insurance were required at closing, Kentucky Housing Corporation (KHC) is obligated, under the terms of your mortgage, to collect and maintain this account for real estate taxes, insurance, and certain other expenses connected with your property.

Annual Tax and Interest (T&I) Statements

KHC provides annual T&I Statements by January 31, conveniently located within customers’ payment coupon books. The statement reflects the amount of mortgage interest paid and any real estate taxes paid through your escrow account during the period of time your loan was serviced by KHC. You may also access this information at any time by utilizing KHC’s website, www.kyhousing.org.

Yearly Taxes

As a property owner, you are required to pay taxes on your property. The taxes you pay are in proportion to the value of your property.

KHC receives real estate tax information directly from the taxing authority for your home. In order to pay your yearly property taxes, we will collect monthly funds from you in the form of an escrow payment. Your escrow account is analyzed annually, and if we’ve collected too much, an escrow refund check will be mailed to you. If we have collected too little or your taxes have increased, we will pay your tax bill in full, but your overall payment may increase due to the property bills. New payment coupons will be issued to you in January each year, and the Escrow Account Disclosure Statement will be included with the new coupon book you receive.

Taxing Authority

If you are concerned about any increases or any other charges to your tax bill, please contact your taxing authority directly to discuss those changes. KHC has no control over tax amounts.