Pennsylvania · State guide
How to buy a house in Pennsylvania
One of the more affordable states — with the deepest down payment help in the region and a huge price gap between the pricey Philly suburbs and cheap western PA — set against high property taxes. Here is the playbook for buying in the Keystone State.
Last updated June 2026
Why Pennsylvania is different
Buying a house in Pennsylvania, the short version
The federal process is the same everywhere — read the complete guide to buying a house for the eight universal steps — but Pennsylvania has its own programs, taxes, and closing rules worth knowing before you start.
The picture: Pennsylvania is affordable but divided (a statewide median around $319,000; the Philadelphia suburbs are expensive while Pittsburgh, Harrisburg, and Erie are among the cheapest metros in the country). The state agency, PHFA, offers below-market loans plus a 5% forgivable down payment loan.
The trade-off: Pennsylvania has high property taxes (~1.3%, mostly funding schools), and a transfer tax that’s usually 2% but jumps to 4.578% in Philadelphia and 5% in Pittsburgh. Two uncovered risks — flooding and mine subsidence — need separate policies. Use the 50-state hub to compare other states.
The market
What homes cost in Pennsylvania
Affordable overall, but with a huge east-west price divide.
The statewide median sale price was about $319,000 in spring 2026 (Redfin), up around 5.6% year over year, with roughly 3 months of supply and about a third of homes selling above list. But the state splits sharply between the expensive southeast and the affordable west and center:
Median prices by area
Chester ~$556K · Bucks ~$538K · Montgomery ~$430K–$450K — the pricey Philadelphia collar counties · Philadelphia (city) ~$290K · Pittsburgh ~$260K · Allentown (Lehigh Valley) ~$255K · Lancaster (city) ~$255K · Scranton ~$222K · Reading ~$185K · Harrisburg ~$155K · Erie ~$147K, among the cheapest in the country.
Down payment & rate help
PHFA programs
You don’t apply directly — you work through a participating lender. A 660 credit score and a homebuyer course are the main requirements.
-
01
PHFA mortgage + K-FIT (5% forgivable)
The core: a competitive 30-year fixed mortgage (conventional, FHA, VA, or USDA) paired with K-FIT, which gives 5% of the price — with no dollar cap — as a 0% second loan forgiven over 10 years (10% a year). Stay 10 years and it’s a grant. On a $250K home that’s $12,500.
-
02
Keystone Advantage & HOMEstead
Other help: the Keystone Advantage loan gives up to $6,000 at 0%, repaid over 10 years. And for lower incomes, HOMEstead gives up to $10,000, forgiven over 5 years. Both are second mortgages layered on a PHFA first loan.
-
03
The tax credit & access programs
PHFA’s Mortgage Credit Certificate adds a federal tax credit up to $2,000 a year of your mortgage interest, for the life of the loan. And buyers with a disability (or a household member with one) can add Access help — up to $15,000 for down payment or $10,000 for home modifications.
-
04
Local & federal help
Cities stack more: Philly First Home gives up to $10,000 or 6%, and Pittsburgh’s URA adds its own (up to $90,000 in some cases). Plus USDA (0% down — much of rural PA qualifies), VA (0% down), and FHA (3.5% down).
The PHFA rules in brief
You’ll generally need a 660 credit score, completion of a homebuyer education course (required in person for anyone under 680 — and it earns a $300 closing credit if done before you sign), and household income and price under county limits (income roughly $106,000–$147,000 and price roughly $500,000–$730,000 depending on county). K-FIT also caps your liquid assets at $50,000 after closing. Some programs are first-time only; the Keystone Flex option drops that requirement.
★ Free expert help
Buying in Pennsylvania? Get matched with a local expert.
From stacking K-FIT with a city grant to figuring out your county’s very different tax and transfer rates, a local pro can walk you through it — and answer the questions this page can’t. Free, with no obligation.
Property taxes
Property taxes in Pennsylvania: high
Here’s the trade-off for affordable homes: Pennsylvania has high property taxes — an effective rate around 1.3%, above the national average, with a typical bill near $3,200. Most of that funds schools. And because every county assesses differently (some haven’t reassessed in decades), rates vary enormously: Delaware County is the highest at ~1.67%, while Philadelphia is one of the lowest at ~0.83%. Chester and Bucks have the biggest bills.
Claim the Homestead Exclusion — and the rebate for seniors
Two things to file. The Homestead Exclusion (funded by casino revenue) lowers the taxable value of your primary home before school tax is figured — apply through your county by the March 1 deadline (Philadelphia’s version cuts $100,000 off, saving most owners ~$1,399). And the Property Tax/Rent Rebate, recently expanded, gives seniors 65+ (and widows/widowers 50+ and people with disabilities) up to $1,000 back with income up to $45,000. There’s also an ongoing debate about eliminating school property taxes entirely, but nothing has passed yet.
Closing & costs
Closing on a home in Pennsylvania
Pennsylvania is a title-company state — a title/settlement company handles the closing and recording, and an attorney isn’t required (though they’re used in parts of eastern PA). Title insurance rates are set by the state. The big cost to plan for is the realty transfer tax: 1% state plus local, usually 2% total, and by custom split 50/50 between buyer and seller — but it’s much higher in Philadelphia (4.578%) and Pittsburgh (5%). On financing, the 2026 conforming limit is $832,750 and the FHA floor is $541,287 in most counties, rising to $630,200 in the Philadelphia metro (and much higher in Pike County).
Pennsylvania requires a seller disclosure form
Pennsylvania law requires the seller of most homes to complete a written Seller’s Property Disclosure Statement — listing known material defects — and give it to you before you sign the agreement of sale. Sellers who hide known problems can be liable for damages. The federal lead-paint disclosure applies to pre-1978 homes. Always get your own home inspection too — the form is the seller’s knowledge, not a guarantee, and it won’t catch everything.
Insurance & risks
Insuring a Pennsylvania home
Good news here: Pennsylvania home insurance is affordable — generally below the national average, often around $1,200–$2,000 a year depending on coverage. The main risks are severe thunderstorms, wind, and hail, winter weather (snow, ice storms, frozen pipes, and lake-effect snow near Erie), and — most importantly — flooding, which is Pennsylvania’s most frequent and damaging natural disaster along the Susquehanna, Delaware, and Ohio river systems.
Two big risks your standard policy won’t cover
Pennsylvania has two coverage gaps to plan for. First, flood is never covered by a standard policy — if you’re near a river or in a flash-flood-prone area, add an NFIP flood policy (it’s required in high-risk zones with a mortgage). Second, in the old coal regions of western and northeastern PA, mine subsidence (ground sinking over abandoned mines) is excluded too — but the state runs a cheap Mine Subsidence Insurance program (about $41 a year for $150,000 of coverage), so check the DEP map. If a home is hard to insure, PA has a FAIR Plan as a last resort.
Wherever you buy
The steps that work the same in Pennsylvania
Pennsylvania sets the local rules, but these parts of buying are the same everywhere.
Quick answers
Buying a house in Pennsylvania: common questions
How much money do you need to buy a house in Pennsylvania?
With a conventional loan you need 3% down, FHA 3.5%, and VA or USDA can be 0%. On a typical ~$319,000 home that’s roughly $9,600–$11,000 down plus closing costs. PHFA’s K-FIT can cover 5% of the price, forgiven over 10 years. See how much you really need →
Does Pennsylvania have down payment assistance?
Yes, generously. PHFA’s K-FIT gives 5% of the price (no cap) as a loan forgiven over 10 years, plus Keystone Advantage (up to $6,000) and HOMEstead (up to $10,000). Philadelphia and Pittsburgh add city programs on top. See assistance programs →
Why are Pennsylvania property taxes high?
Because the state relies heavily on local property taxes to fund schools — school taxes are the biggest part of the bill. The statewide effective rate is around 1.3%, above average, and it varies a lot by county since each one assesses differently.
What is PHFA’s K-FIT program?
K-FIT (Keystone Forgivable in Ten Years) gives you 5% of the home’s price — with no dollar limit — as a no-interest second loan with no monthly payment. It’s forgiven at 10% per year, so after 10 years in the home you owe nothing.
What credit score do you need in Pennsylvania?
Most PHFA programs require a 660. For loans broadly, FHA can go to 580 and USDA/VA typically want 620. Anyone under 680 must take an in-person homebuyer course. A higher score mainly earns a lower rate. Check the score by loan type →
Do I need an attorney to buy a house in Pennsylvania?
No. Pennsylvania is a title-company state — a title/settlement company handles the closing. You can hire an attorney if you want (more common in eastern PA), but it’s not required. Title insurance is standard.
How much is the transfer tax in Pennsylvania?
Usually 2% total (1% state + 1% local), customarily split 50/50 between buyer and seller. But it’s much higher in Philadelphia (4.578%) and Pittsburgh (5%), so budget for your share based on where you buy.
Do I need flood or mine subsidence insurance in PA?
Flood insurance if you’re near a river or in a flash-flood area — it’s never in a standard policy and is required in high-risk zones. And in old coal regions, mine subsidence coverage (a cheap state program, ~$41/year) is worth adding, since standard policies exclude it.
What’s the conforming loan limit in Pennsylvania?
$832,750 in most counties for 2026, with the FHA floor at $541,287. The Philadelphia metro is higher at $630,200, and Pike County (near NYC) is much higher. Loans above the conforming limit are jumbo.
★ Ready for the next step?
Don’t navigate the Pennsylvania market alone.
Tell us where you are in the process and we’ll connect you with an expert who can help — whether that’s a PHFA loan, K-FIT, a USDA 0%-down approval, or fixing your credit. It’s free, with no obligation.
Compare states
Buying in a different state?
The programs, taxes, and closing rules change at the state line. Pick another state, or see all 50.