Pennsylvania Mortgage Guide 2026
This Pennsylvania mortgage guide covers everything you need to know about getting a mortgage in Pennsylvania — FHA loan limits by county, PHFA down payment assistance, property taxes, closing costs, and the 2026 Pennsylvania housing market outlook.
Pennsylvania Mortgage Guide: Loan Limits by County (2026)
Most of Pennsylvania’s 67 counties are at or near the national FHA floor. Five counties in the Philadelphia metro area have a higher FHA limit due to above-average home prices, and Pike County has an elevated conforming limit as part of a New York-area metro designation even though its FHA limit remains at the floor.
| County | Conforming Limit | FHA Limit | Notes |
|---|---|---|---|
| Adams | $832,750 | $541,287 | National floor |
| Allegheny (Pittsburgh) | $832,750 | $541,287 | National floor |
| Armstrong | $832,750 | $541,287 | National floor |
| Beaver | $832,750 | $541,287 | National floor |
| Bedford | $832,750 | $541,287 | National floor |
| Berks (Reading) | $832,750 | $541,287 | National floor |
| Blair | $832,750 | $541,287 | National floor |
| Bradford | $832,750 | $541,287 | National floor |
| Bucks (Philadelphia metro) | $832,750 | $630,200 | Elevated FHA limit |
| Butler | $832,750 | $541,287 | National floor |
| Cambria | $832,750 | $541,287 | National floor |
| Cameron | $832,750 | $541,287 | National floor |
| Carbon | $832,750 | $541,287 | National floor |
| Centre (State College) | $832,750 | $541,287 | National floor |
| Chester (Philadelphia metro) | $832,750 | $630,200 | Elevated FHA limit |
| Clarion | $832,750 | $541,287 | National floor |
| Clearfield | $832,750 | $541,287 | National floor |
| Clinton | $832,750 | $541,287 | National floor |
| Columbia | $832,750 | $541,287 | National floor |
| Crawford | $832,750 | $541,287 | National floor |
| Cumberland (Harrisburg) | $832,750 | $541,287 | National floor |
| Dauphin (Harrisburg) | $832,750 | $541,287 | National floor |
| Delaware (Philadelphia metro) | $832,750 | $630,200 | Elevated FHA limit |
| Elk | $832,750 | $541,287 | National floor |
| Erie | $832,750 | $541,287 | National floor |
| Fayette | $832,750 | $541,287 | National floor |
| Forest | $832,750 | $541,287 | National floor |
| Franklin | $832,750 | $541,287 | National floor |
| Fulton | $832,750 | $541,287 | National floor |
| Greene | $832,750 | $541,287 | National floor |
| Huntingdon | $832,750 | $541,287 | National floor |
| Indiana | $832,750 | $541,287 | National floor |
| Jefferson | $832,750 | $541,287 | National floor |
| Juniata | $832,750 | $541,287 | National floor |
| Lackawanna (Scranton) | $832,750 | $541,287 | National floor |
| Lancaster | $832,750 | $541,287 | National floor |
| Lawrence | $832,750 | $541,287 | National floor |
| Lebanon | $832,750 | $541,287 | National floor |
| Lehigh (Allentown) | $832,750 | $541,287 | National floor |
| Luzerne (Wilkes-Barre) | $832,750 | $541,287 | National floor |
| Lycoming | $832,750 | $541,287 | National floor |
| McKean | $832,750 | $541,287 | National floor |
| Mercer | $832,750 | $541,287 | National floor |
| Mifflin | $832,750 | $541,287 | National floor |
| Monroe | $832,750 | $541,287 | National floor |
| Montgomery (Philadelphia metro) | $832,750 | $630,200 | Elevated FHA limit |
| Montour | $832,750 | $541,287 | National floor |
| Northampton (Allentown) | $832,750 | $541,287 | National floor |
| Northumberland | $832,750 | $541,287 | National floor |
| Perry | $832,750 | $541,287 | National floor |
| Philadelphia | $832,750 | $630,200 | Elevated FHA limit |
| Pike | $1,209,750 | $541,287 | Conforming elevated (NY metro area); FHA at floor |
| Potter | $832,750 | $541,287 | National floor |
| Schuylkill | $832,750 | $541,287 | National floor |
| Snyder | $832,750 | $541,287 | National floor |
| Somerset | $832,750 | $541,287 | National floor |
| Sullivan | $832,750 | $541,287 | National floor |
| Susquehanna | $832,750 | $541,287 | National floor |
| Tioga | $832,750 | $541,287 | National floor |
| Union | $832,750 | $541,287 | National floor |
| Venango | $832,750 | $541,287 | National floor |
| Warren | $832,750 | $541,287 | National floor |
| Washington | $832,750 | $541,287 | National floor |
| Wayne | $832,750 | $541,287 | National floor |
| Westmoreland | $832,750 | $541,287 | National floor |
| Wyoming | $832,750 | $541,287 | National floor |
| York | $832,750 | $541,287 | National floor |
FHA limits vary by county. 62 of Pennsylvania’s 67 counties sit at the $541,287 national floor. Bucks, Chester, Delaware, Montgomery, and Philadelphia counties (the Philadelphia metro) are elevated to $630,200. Pike County keeps the FHA floor but has an elevated conforming limit of $1,209,750 because it is part of a New York-area metro designation for conforming loan purposes. Always verify your specific county at HUD’s official FHA limit lookup tool, and confirm conforming limits at FHFA’s conforming loan limit page.
Loan Programs Available in Pennsylvania
All major federal mortgage programs are available statewide in Pennsylvania. Here’s how each compares for Pennsylvania buyers:
| Program | Min Down Payment | Min Credit Score | Best For |
|---|---|---|---|
| FHA | 3.5% | 580 | First-time buyers, lower credit scores |
| VA | 0% | 580–620 | Veterans, active duty, surviving spouses |
| USDA | 0% | 640 | Rural Pennsylvania buyers meeting income limits |
| Conventional | 3–20% | 620 | Strong credit, wants PMI cancellation |
| PHFA Keystone Home Loan + K-FIT | 0% effective | 660 | PHFA first mortgage + forgivable second mortgage for down payment |
| PHFA HFA Preferred + PHFA Grant | 3% effective | 660 | Conventional PHFA loan + $500 non-repayable grant |
PHFA Down Payment Assistance Programs
The Pennsylvania Housing Finance Agency (PHFA) offers several layered down payment and closing cost assistance options that can be paired with a PHFA first mortgage. Unlike many states with a single flagship program, Pennsylvania offers multiple options with different structures.
| Program | Assistance Amount | Structure | Key Requirements |
|---|---|---|---|
| K-FIT (Keystone Forgivable in Ten Years) | 5% of purchase price or appraised value, whichever is less | Forgiven 10% per year over 10 years — no monthly payment | Min credit score 660; only available with a Keystone Home Loan first mortgage |
| Keystone Advantage Assistance Loan | Lesser of 4% of purchase price/value or $6,000 | 0% interest, repaid monthly, amortized over 10 years (not forgiven) | Min credit score 660; usable with HFA Preferred, Keystone Government, or Keystone Home Loan |
| PHFA Grant | $500 flat | Non-repayable grant — no forgiveness period needed | Only available with HFA Preferred (Lo MI) first mortgage |
| HOMEstead | Up to $10,000 | 0% interest, forgiven 20% per year over 5 years | Minimum loan amount $1,000; income and purchase price limits vary by county; not available in Philadelphia and several other counties that receive their own separate federal allocation |
PHFA’s K-FIT is one of the largest forgivable down payment programs in the country. At 5% of the purchase price with no dollar cap, it can fully cover the minimum down payment on most PHFA first mortgage products. It cannot be combined with Keystone Advantage or HOMEstead on the same loan. Confirm current terms at phfa.org.
Pennsylvania Property Taxes
Pennsylvania has no state-level property tax. Property tax is assessed and collected entirely at the local level — by counties, municipalities, and school districts — which means effective rates vary significantly depending on where in the state you buy. Rates are commonly estimated in the 1.3%–1.6% range statewide, among the higher rates in the Northeast, though this varies widely by school district.
Because there is no single statewide assessment system, Pennsylvania counties periodically conduct countywide reassessments, and the State Tax Equalization Board (STEB) calculates a Common Level Ratio (CLR) for each county to help equalize assessed values against fair market value for tax purposes.
| Purchase Price | Est. Annual Tax (1.4%) | Monthly Escrow |
|---|---|---|
| $250,000 | ~$3,500 | ~$292/mo |
| $350,000 | ~$4,900 | ~$408/mo |
| $450,000 | ~$6,300 | ~$525/mo |
| $600,000 | ~$8,400 | ~$700/mo |
Property Tax/Rent Rebate Program: Pennsylvania offers a rebate on a portion of property taxes (or rent paid in lieu of property taxes) for qualifying seniors age 65+, widows/widowers age 50+, and people with disabilities age 18+, subject to income limits. This does not reduce the tax bill itself but can be claimed annually. Details at the PA Department of Revenue.
Closing Costs in Pennsylvania
Pennsylvania’s closing costs are shaped mainly by its realty transfer tax, which applies statewide at 1% and is frequently supplemented by local municipal and school district add-ons. In Philadelphia the combined rate reaches 4.578%, and in Pittsburgh it reaches 4% — among the highest transfer tax burdens of any major U.S. cities.
| Fee | Typical Amount | On a $450,000 Purchase |
|---|---|---|
| Realty transfer tax (statewide minimum) | 1% of price, often split buyer/seller | $4,500 (total, before local add-ons) |
| Loan origination fee | 0–1% of loan | $0–$3,600 |
| Title insurance (lender’s) | Based on loan amount | ~$900–$1,600 |
| Owner’s title insurance | Based on purchase price | ~$1,200–$2,200 |
| Attorney/settlement fee | Attorney-involved closings common in PA | ~$500–$1,200 |
| Appraisal | Paid upfront or at closing | ~$500–$700 |
| Recording fee | Per document, county-set | ~$100–$250 |
| Homeowner’s insurance (prepaid) | First year premium | ~$900–$1,600 |
Transfer tax note: Because the realty transfer tax is typically split evenly between buyer and seller by custom (not legal requirement), a buyer’s share on a $450,000 Philadelphia purchase at the combined 4.578% rate would be roughly $10,300, compared to roughly $2,250 in most other Pennsylvania counties at the 1% statewide-only rate. Always confirm the local rate for your specific municipality and school district before closing.
Pennsylvania Housing Market Overview (2026)
Pennsylvania’s housing market is shaped by its two major metros — Philadelphia and Pittsburgh — along with a large number of smaller cities and a substantial rural population. Home values are generally more affordable than neighboring New York and New Jersey.
| Area | Market Notes |
|---|---|
| Philadelphia | Largest city (population ~1.57 million); median home value around $243,100; highest transfer tax burden in the state at 4.578% combined |
| Pittsburgh / Allegheny County | Second-largest metro (population ~307,600); median home value around $205,800; combined transfer tax of 4% |
| Allentown / Lehigh Valley | Growing market (population ~126,000); median home value around $206,600; popular with buyers priced out of the NY/NJ metro |
| Harrisburg | State capital region (population ~50,500); median home value around $124,200; home to Naval Support Activity Mechanicsburg and the 193rd Special Operations Wing |
| Erie | Northwestern PA (population ~91,800); median home value around $115,200; among the state’s most affordable metro markets |
| Scranton | Northeastern PA (population ~75,500); median home value around $158,100 |
| Rural Pennsylvania (most other counties) | More affordable; broad USDA loan eligibility; many counties at the FHA/conforming national floor |
