Pennsylvania FHA Loans 2026
Yes, Pennsylvania buyers can get an FHA loan with 3.5% down and a 580 credit score, and FHA pairs well with Pennsylvania's PHFA down payment assistance. FHA is often the most accessible path for first-time buyers in Philadelphia, Pittsburgh, and across the Keystone State.
Can you buy a home in Pennsylvania with no down payment using an FHA loan?
Yes, for eligible borrowers. FHA loans normally require 3.5% down, but our down payment assistance grant covers it entirely, either 2% or 3.5% of the purchase price, with no repayment and no second lien on your home. It is a true grant, not a loan you pay back later, so for many Pennsylvania buyers it means bringing no money to the table for the down payment.
The grant is available to a wide range of Pennsylvania buyers. You may qualify if your income is at or below 140% of your area's median, or if you are a first-time buyer, first responder, educator, medical professional, civil servant, or military member, or if the home is in an underserved area. A 620 credit score and a short homebuyer education course are required, and the grant works on standard FHA purchases as well as FHA renovation loans.
If your credit history has a few blemishes, we can often still find a path through a manually underwritten FHA approval. Our national overview also explains how FHA loans work nationwide.
See if you qualify for the grantWhat are today's FHA loan rates in Pennsylvania?
We publish FHA rates daily. Here is today's rate for a Pennsylvania FHA loan, updated automatically.
Today’s 30-Year Fixed FHA Rate
FHA – Primary Residence
Rate Assumptions
30 year fixed, $300k loan amount, $400k value, purchase, FICO Credit Score 759, Zipcode 95111
APR & Disclosures
The Annual Percentage Rate (APR) shown reflects the cost of credit over the loan term, including applicable fees, and is based on the assumptions above. Your actual rate and APR depend on your credit profile, loan amount, property, occupancy, and other factors. For information purposes only and does not constitute a loan approval or commitment to lend. Rates are subject to change without notice.
How does Pennsylvania's transfer tax affect FHA buyers?
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.
What are the 2026 FHA loan limits by Pennsylvania 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)
What PHFA down payment assistance programs work with FHA in Pennsylvania?
Several. Pennsylvania Housing Finance Agency offers some of the best DPA programs in the nation, and they all work with FHA loans. You can also see all Pennsylvania mortgage programs in one place.
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.
Estimate Your FHA Payment
See your complete FHA payment, including both parts of mortgage insurance, and how your down payment changes the math over time.
Understanding your FHA payment
An FHA payment has a piece conventional and VA loans don't: mortgage insurance, and it comes in two parts. The upfront premium is a one-time charge of a percentage of your loan amount, almost always rolled into the loan rather than paid at closing, which is why the total loan above can exceed your purchase price. The annual premium is charged monthly and appears as its own line in the breakdown.
The 11-year rule, and why your down payment matters more than you'd think
Here's the part that changes the math over time. If you put less than 10% down, FHA mortgage insurance stays on the loan for as long as you have it. It doesn't fall off at 20% equity the way conventional PMI does. If you put 10% or more down, it drops off after 11 years.
That's a meaningful long-term difference, and it's worth modeling both ways above if you have the savings to reach 10%. It also means FHA isn't automatically the cheaper option just because the down payment is lower. For a buyer with solid credit and some savings, a conventional loan with removable PMI often costs less over the years you actually hold the loan, even though it asks for more up front. I run that comparison for every borrower who could qualify either way, because the right answer genuinely differs by situation.
FHA loan limits are set by county
FHA limits vary county by county, and they're lower than conforming limits in most places. If your loan amount exceeds your county's FHA limit, FHA isn't available for that purchase and you'd be looking at conventional or jumbo financing. The calculator flags this automatically when it happens.
What this calculator doesn't include
It covers principal, interest, mortgage insurance, property taxes, homeowners insurance, and HOA dues. It doesn't include title, escrow, appraisal, recording, or prepaid costs, which vary by state and transaction, and it uses the rate you enter rather than one you've been quoted. Use it for the monthly number, then let me run your actual scenario.
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
How much is FHA mortgage insurance?
There are two parts: a one-time upfront premium that's usually financed into the loan, and an annual premium charged monthly. The calculator computes both for your loan amount and down payment. The exact rates come from HUD's published schedule.
Does FHA mortgage insurance ever go away?
It depends entirely on your down payment. Under 10% down, it stays for the life of the loan. At 10% or more down, it drops off after 11 years. Unlike conventional PMI, it does not automatically cancel when you reach 20% equity, which is one of the most misunderstood parts of FHA financing.
Is FHA cheaper than conventional?
Not always. FHA gets you in with less money down and more flexible credit, but its mortgage insurance is more expensive long-term and often permanent. For a buyer with good credit and 5% or more saved, conventional frequently wins on total cost. It's worth running both before you decide, and I'll do that for you.
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%.
Do you have to repay FHA down payment assistance in Pennsylvania?
No. Our FHA down payment assistance is a true grant of 2% or 3.5% of the purchase price. There is no repayment and no second lien placed on your home, which makes it different from most down payment assistance programs that are repayable or forgivable loans.
Explore Other Pennsylvania Loan Options
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From the blog & learning center
FHA Loan Guides & Articles
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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.
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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.
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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.
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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.
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Can I get approved through manual underwriting when the AUS says no?
Yes, manual underwriting is a real second path to approval when the automated system returns a refer or a denial, on the condition that you have compensating factors strong enough to offset whatever the software flagged.
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Down Payment Assistance Programs by State
Most states offer some form of down payment assistance, and many buyers qualify without realizing it.
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