Pennsylvania FHA Loan Requirements 2026
This guide to Pennsylvania FHA loan requirements covers loan limits for every Pennsylvania county, credit score and down payment requirements, MIP costs, and how FHA financing pairs with PHFA’s K-FIT and Keystone Advantage assistance programs.
FHA Loan Limits by Pennsylvania County (2026)
FHA loan limits are set by HUD and updated annually based on local median home prices. 62 of Pennsylvania’s 67 counties sit at the national floor, while Bucks, Chester, Delaware, Montgomery, and Philadelphia counties (the Philadelphia metro) have a higher 1-unit limit due to above-average home prices. Pike County keeps the FHA floor but has an elevated conforming loan limit.
| County | 1-Unit | 2-Unit | 3-Unit | 4-Unit |
|---|---|---|---|---|
| Bucks, Chester, Delaware, Montgomery, Philadelphia (Philadelphia metro) | $630,200 | Confirm at HUD’s tool | Confirm at HUD’s tool | Confirm at HUD’s tool |
| Pike | $541,287 | $693,050 | $837,700 | $1,041,125 |
| All other 61 counties (national floor) | $541,287 | $693,050 | $837,700 | $1,041,125 |
Most Pennsylvania counties sit at the national FHA floor. Only Bucks, Chester, Delaware, Montgomery, and Philadelphia counties (Philadelphia metro) have a 1-unit limit above the $541,287 floor. Limits are set per-county by HUD and updated annually; always confirm your exact county limit — including 2-4 unit figures for Philadelphia-metro counties — using HUD’s official FHA Mortgage Limits lookup tool before making an offer.
Pennsylvania FHA Loan Requirements Overview
| Requirement | Standard FHA | Notes |
|---|---|---|
| Credit score | 580 (3.5% down); 500–579 (10% down) | Most PA lenders require 620+; PHFA programs require 660 |
| Down payment | 3.5% | Can combine with PHFA K-FIT or Keystone Advantage assistance |
| DTI ratio | Up to 57% with strong factors | 43% preferred |
| Primary residence | Required | Owner-occupied only |
| Property condition | Must meet FHA Minimum Property Standards | Older PA housing stock: check roof, heating system, foundation |
FHA Mortgage Insurance Premiums (MIP)
| MIP Type | Rate | On a $400,000 Loan |
|---|---|---|
| Upfront MIP (UFMIP) | 1.75% of loan amount | $7,000 (typically financed) |
| Annual MIP (monthly) | 0.55%/yr (30-yr, LTV 95%+) | ~$183/mo |
MIP cancellation: FHA MIP is permanent on loans originated after June 3, 2013, with less than 10% down payment. For Pennsylvania buyers who put down 10% or more, MIP cancels after 11 years. Many Pennsylvania borrowers refinance into a conventional loan once they reach 20% equity to eliminate MIP.
FHA vs. Conventional in Pennsylvania
| Factor | FHA | Conventional |
|---|---|---|
| Min credit score | 580 | 620 |
| Down payment | 3.5% | 3–20% |
| Mortgage insurance | MIP (permanent with <10% down) | PMI (cancels at 80% LTV) |
| Max loan limit (Philadelphia metro) | $630,200 | Conforming limit applies ($832,750) |
| PHFA pairing | Yes — Keystone Advantage can cover down payment + some costs | Yes — via HFA Preferred + PHFA Grant or Keystone Advantage |
| Best for | Lower credit, gift/assistance funds, first-time buyers | 680+ credit, plans to cancel PMI, stronger assets |
PHFA K-FIT + FHA Combination
K-FIT is only available with PHFA’s own Keystone Home Loan, which can be originated as an FHA-insured loan. Here’s how it works on a $350,000 purchase:
| Item | Amount |
|---|---|
| Purchase price | $350,000 |
| FHA down payment (3.5%) | $12,250 |
| K-FIT assistance (5% of purchase price) | $17,500 |
| Net down payment from buyer | $0 (assistance covers down payment + some closing costs) |
The K-FIT assistance amount is based on purchase price or appraised value (whichever is less), and is structured as a forgivable second mortgage rather than a traditional loan. On a $350,000 purchase, a 5% assistance amount equals $17,500 — enough to cover the full FHA down payment and potentially some closing costs, including part of the realty transfer tax. Confirm current terms at phfa.org.
