Pennsylvania FHA Loans 2026
From Philadelphia rowhomes to Pittsburgh neighborhoods, FHA loans help Pennsylvania buyers achieve homeownership with just 3.5% down. Combined with PHFA assistance programs, you could move in with minimal out-of-pocket costs.
Pennsylvania Transfer Tax: What FHA Buyers Should Know
Pennsylvania's 2% transfer tax (4.28% in Philadelphia) impacts your closing costs. Good news: FHA allows sellers to pay up to 6% of your closing costs, often covering the transfer tax entirely. We negotiate seller concessions on most PA FHA deals.
2026 Pennsylvania FHA Loan Limits by County
Most Pennsylvania counties have standard FHA limits. Pike County (Poconos/NYC commuter area) has elevated limits.
| County / Metro Area | 2026 FHA Limit | Classification |
|---|---|---|
Pike (NYC Metro) | $541,287 | Standard |
Philadelphia | $630,200 | High-Cost |
Allegheny (Pittsburgh) | $541,287 | Standard |
Montgomery | $630,200 | High-Cost |
Bucks | $630,200 | High-Cost |
Delaware | $630,200 | High-Cost |
Chester | $630,200 | High-Cost |
Lancaster | $541,287 | Standard |
Verified as of July 2026 (FHFA/HUD)
PHFA Down Payment Assistance Programs
Pennsylvania Housing Finance Agency offers some of the best DPA programs in the nation—and they work with FHA loans.
Keystone Advantage Assistance
Up to 4% of purchase price or $6,000 (whichever is less) as a 0% interest, 10-year forgivable loan.
- Forgiven after 10 years if you stay
- No monthly payments required
- Works with FHA, VA, RD loans
K-FIT (Keystone Forgivable in Ten Years)
Up to 5% of purchase price as a forgivable loan. Completely forgiven after 10 years of ownership.
- Higher assistance than Keystone Advantage
- Income limits up to 150% AMI
HOMEstead Down Payment & Closing Cost
Up to $10,000 for first-time buyers. Federal HOME funds with income restrictions.
Calculate Your Pennsylvania FHA Payment
Factor in PA property taxes and mortgage insurance to see your true monthly payment.
Reviewed by Emmett Clark
NMLS #233747 • 20+ Years Experience • Pennsylvania FHA Specialist
"Pennsylvania's transfer tax surprises many first-time buyers, but with FHA's 6% seller concession allowance, we typically negotiate to have sellers cover it. Combined with PHFA's K-FIT program, I've closed Pennsylvania FHA deals where buyers brought less than $2,000 to closing."
Pennsylvania FHA Loan FAQs
What is the FHA loan limit in Pennsylvania for 2026?
Pennsylvania FHA loan limits for 2026 range from $541,287 in standard counties to $630,200 in the Philadelphia metro (Philadelphia, Montgomery, Bucks, Delaware, and Chester counties). Pittsburgh and most other PA counties have the standard limit.
What is Pennsylvania's transfer tax and who pays it?
Pennsylvania has a 2% real estate transfer tax (1% state + 1% local). By custom, buyers and sellers split it 50/50. Philadelphia adds an additional 3.28%, totaling 4.28%. FHA allows sellers to pay up to 6% of buyer closing costs.
Can I combine FHA with PHFA down payment assistance?
Yes! Pennsylvania Housing Finance Agency (PHFA) offers several FHA-compatible programs including Keystone Advantage (up to 4% or $6,000), K-FIT (5% forgivable over 10 years), and HOMEstead for first-time buyers.
What credit score do I need for an FHA loan in Pennsylvania?
FHA requires minimum 580 credit for 3.5% down, or 500-579 for 10% down. Most Pennsylvania lenders prefer 620+ for smoother approvals and better rates.
Are Pennsylvania property taxes included in my FHA payment?
Yes, FHA requires escrow accounts for taxes and insurance. Pennsylvania property taxes average 1.5% but vary significantly by school district—Philadelphia is around 1.4% while some suburban districts exceed 2%.
Explore Other Pennsylvania Loan Options
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From the blog & learning center
FHA Loan Guides & Articles
Gift Funds: The Rules for Down Payment Gifts
A family member can give you money for your down payment, and on most loan types the entire down payment can be a gift. The key rules: it has to be a true gift with no repayment expected, it must come from an acceptable source, and it has to be documented with a gift letter and a clear paper trail.
Read moreSeller Concessions: How Much Can the Seller Pay?
A seller concession is when the seller agrees to pay part of your closing costs as a term of the sale. It's a legitimate, common way to reduce your cash to close, and depending on the loan type and your down payment, a seller can contribute anywhere from 2% to 9% of the purchase price toward your costs.
Read moreWhat Credit Score Do You Need for Each Loan Type?
The minimum credit score depends entirely on the loan program: FHA goes as low as 500-580, VA and USDA have no federal minimum (lenders typically want 580-640), conventional generally starts around 620, and jumbo loans want 700 or higher. Here's the breakdown by program.
Read more
How to Buy a House With Bad Credit
You can buy a house with bad credit, it just takes the right loan program and some strategy. FHA loans accept scores as low as 500, and there are concrete steps to strengthen your application even when your credit isn't where you'd like it.
Read more
FHA Loans Plus a Down Payment Grant: How Little You Can Actually Bring to Closing
Combining an FHA loan with a down payment assistance grant can reduce what you bring to closing to as little as 0% to 1% of the purchase price, nationwide, not just in select states.
Read more
Can I buy a house after a recent late payment, collection, or charge-off?
Yes, you can often buy a home soon after a late payment, a collection, or a charge-off, as long as the rest of your file is strong and you can explain the event, because none of these carry a fixed waiting period the way a bankruptcy or foreclosure does.
Read more