Pennsylvania's mortgage market has its own distinct rules — from closing customs to transfer tax structure to the specific down payment programs available through the state's housing finance agency. This guide covers what's genuinely different about buying in Pennsylvania, not just the generic national mortgage process.
Pennsylvania at a Glance
Est. payment: $1,988/mo
Est. payment: $1,716/mo
Est. payment: $2,113/mo
Estimated payments assume 5% down, 6.82% 30-year fixed rate, plus $150/month insurance. Your actual payment will vary by lender, credit score, and specific property tax rate.
How Pennsylvania Closings Work
Pennsylvania does not strictly require an attorney, but the majority of transactions — especially in Philadelphia and Pittsburgh — use one given the complexity of local transfer tax stacking and the state's title insurance customs.
Transfer tax: 1% state transfer tax plus local transfer tax (typically 1%, though Philadelphia charges 3.278% combined city+state) — Philadelphia's total transfer tax burden is among the highest of any major U.S. city.
The Pennsylvania Property Tax Quirk You Should Know
Pennsylvania has no statewide reassessment schedule — each county sets its own revaluation cycle, and some counties (including several in the Philadelphia suburbs) haven't conducted a full reassessment in 20+ years, meaning assessed values can be dramatically out of sync with actual market value in either direction; always verify when your target county last reassessed before relying on the current tax bill as predictive of future costs.
Pennsylvania's Down Payment Assistance Program
Pennsylvania Housing Finance Agency (PHFA) Keystone Advantage Assistance Loan
PHFA's Keystone Advantage Assistance Loan provides up to 4% of the purchase price (or $6,000, whichever is less) for down payment and closing costs as a 10-year, 0% interest second mortgage — one of the more modest DPA ceilings in the Northeast but paired with genuinely competitive first-mortgage rates.
USDA Rural Eligibility in Pennsylvania
Central and northern Pennsylvania, along with rural areas of the Poconos and southwestern PA outside Pittsburgh, have substantial USDA-eligible territory.
Mortgage Loan Limits in Pennsylvania
| Loan Type | Limit | Down Payment |
|---|---|---|
| Conventional (Fannie/Freddie) | $766,550 | 3–20% |
| FHA (PA) | $766,550 | 3.5% |
| VA (eligible veterans) | No limit (full entitlement) | 0% |
| USDA (eligible rural areas) | No set limit | 0% |
Frequently Asked Questions
Pennsylvania does not strictly require an attorney, but the majority of transactions — especially in Philadelphia and Pittsburgh — use one given the complexity of local transfer tax stacking and the state's title insurance customs.
Pennsylvania's transfer tax structure: 1% state transfer tax plus local transfer tax (typically 1%, though Philadelphia charges 3.278% combined city+state) — Philadelphia's total transfer tax burden is among the highest of any major U.S. city. This is typically disclosed on your Closing Disclosure and paid at settlement.
PHFA's Keystone Advantage Assistance Loan provides up to 4% of the purchase price (or $6,000, whichever is less) for down payment and closing costs as a 10-year, 0% interest second mortgage — one of the more modest DPA ceilings in the Northeast but paired with genuinely competitive first-mortgage rates.
Central and northern Pennsylvania, along with rural areas of the Poconos and southwestern PA outside Pittsburgh, have substantial USDA-eligible territory.
Sources for This Page
- Freddie Mac PMMS — national rate benchmark
- HUD FHA Mortgage Limits — PA loan limit data
- USDA Rural Development Eligibility — Pennsylvania rural zone verification
- Pennsylvania state Housing Finance Agency — program terms and current DPA availability