Median Sale Price
$318,867
Pennsylvania statewide median — below the national $417,700 median
+5.6% YoYPennsylvania · FHA LoansFHA Loans in Pennsylvania:
FHA Loans in Pennsylvania:
Requirements, Limits & Assistance Programs
3.5%Min. down payment
580Min. credit score
$541,287FHA loan limit — most PA counties
43%Max debt-to-income ratio
The short version
FHA in Pennsylvania at a Glance
FHA loans are government-backed mortgages that let Pennsylvania buyers put as little as 3.5% down with a credit score of 580 or higher.
3.5%
Min. down payment (580+ score)
10%
Down payment if score 500–579
1.75%
Upfront mortgage insurance premium (MIP)
FHA loans are insured by the Federal Housing Administration and originated by FHA-approved lenders like Intra-Mortgage. Pennsylvania is a strong FHA state — affordable across much of the map, with PHFA assistance statewide and a generous Philly First Home grant in Philadelphia. The item to plan for is the housing stock: Pennsylvania's older homes and row houses get real scrutiny from the FHA appraisal.
Pennsylvania-specific note: Most Pennsylvania counties use the 2026 FHA floor of $541,287 — including Allegheny (Pittsburgh), Lancaster, and Erie. The Philadelphia metro (Bucks, Chester, Delaware, Montgomery, Philadelphia) and Pike County carry higher FHA limits. Confirm the limit for your specific county before you shop.
Pennsylvania housing market
Market Snapshot
Pennsylvania spans expensive Philadelphia suburbs and very affordable markets like Pittsburgh, Erie, and Scranton — with strong year-over-year price growth statewide.
Days on Market
36 days
Statewide average — competitive in the Philadelphia collar counties
StableHomes Sold
10,630
Statewide, May 2026 — a deep, active market
StableFHA Share (National)
17%
Of U.S. purchase loans are FHA — the flexible-credit path many PA buyers use
National avgPennsylvania's +5.6% year-over-year growth is among the stronger figures in our footprint. The Philadelphia collar counties are the most competitive and the only part of the state where FHA limits exceed the floor; Pittsburgh, Erie, and the northeast are markedly more affordable — and full of the older homes where the FHA appraisal earns its keep.
Down payment help
Pennsylvania First-Time Buyer Programs
These programs can be layered on top of an FHA loan to reduce your out-of-pocket costs at closing.
PHFA Keystone Forgivable in Ten Years (K-FIT)
Pennsylvania Housing Finance Agency
- Benefit
- 5% of the lesser of purchase price or appraised value, with no dollar cap
- Structure
- Forgivable second mortgage, written off 10% per year over ten years. Requires a PHFA first mortgage, 660+ credit score, maximum financing, and PHFA-approved homebuyer education. Minimum assistance $500.
Source: Pennsylvania Housing Finance Agency · Verified Sep 8, 2026
PHFA Keystone Advantage Assistance
Pennsylvania Housing Finance Agency
- Benefit
- Up to 4% of purchase price or market value, or $6,000, whichever is less
- Structure
- 0% interest second mortgage repaid monthly over a ten-year term. 660+ credit score. Cannot be combined with other PHFA assistance except Access Modification. Minimum loan $500.
Source: Pennsylvania Housing Finance Agency · Verified Sep 8, 2026
Philly First Home
City of Philadelphia Division of Housing and Community Development
- Benefit
- Up to $10,000 or 6% of the purchase price, whichever is less
- Structure
- Homebuyer assistance grant for down payment and/or closing costs, subject to funding. If you move or refinance before living in the home for 15 years, the grant must be repaid. First-time buyers (or no homeownership for at least three years).
Source: City of Philadelphia Division of Housing and Community Development · Verified Sep 8, 2026
Stack these programs. PHFA assistance is designed to sit on top of an FHA (or conventional) first mortgage from a participating lender. K-FIT offers 5% forgivable over ten years; Keystone Advantage offers up to 4% of purchase price or $6,000 (whichever is less). In Philadelphia, Philly First Home can add up to $10,000 or 6% for first-time buyers who complete housing counseling. PHFA programs generally want a 660+ score, above FHA's 580 floor.
Real scenarios
Pennsylvania FHA Borrower Profiles
Common buyer combinations we see in Pennsylvania — and how FHA works for each.
Profile A
First-time buyer, Philadelphia
Buying a $260,000 row home in the city. Credit 662, W-2 income, completes required housing counseling. May combine the FHA 3.5% down payment, PHFA assistance, and Philly First Home (up to $10,000 or 6%) — a stack that can bring cash-to-close very low. We confirm counseling and program funding early.
Philly First Home eligibleCounseling required~40 day close
Profile B
Older row-home buyer, Philadelphia / Pittsburgh
Buying a $175,000 pre-1940 row home. FHA is available, but the appraisal will scrutinize lead paint (pre-1978), the roof, and shared/party walls common in row construction. We flag likely repair items before the offer — the most common reason an FHA deal on an older Pennsylvania home slips.
Appraisal scrutinyRepairs before closing40–50 day close
Profile C
Suburban buyer, Philadelphia collar counties
Competing for a $420,000 home in Chester or Montgomery County — where the FHA limit exceeds the statewide floor, so FHA is still an option. Credit 700, stable income. In these competitive collar counties, a clean pre-approval is what wins the offer.
Limit exceeds floorGet pre-approved first30–40 day close
Profile D
Self-employed buyer, Lancaster
2-year self-employed history, Schedule C income averaging $76,000/year after write-downs, credit 664. FHA accepts a 2-year average. Needs 2 years of complete tax returns, a year-to-date P&L, and business bank statements. Down payment: 3.5% (~$9,600 on a $275K home).
2-yr tax returns needed+7–10 day underwriting40–52 day close
Run the numbers
Pennsylvania FHA Payment Estimator
Estimate your monthly payment including MIP — the piece most calculators leave out.
Pennsylvania median: $318,867 · FHA floor: $541,287 (Philly metro higher)
Rates vary by credit score and lender
Monthly P&I
$2,031
Principal & interest
Monthly MIP
$141
Mortgage insurance premium (MIP)
Total Monthly
Talk to a loan officer$2,172
Before tax & insurance
Estimates only. Does not include property tax, homeowner's insurance, or HOA dues. MIP rate assumes LTV > 90% for loans ≥ 30 years. Not a commitment to lend.
Answers to real questions
Pennsylvania FHA Loan FAQs
From the field
A Pennsylvania Loan Officer's Take on FHA
"Pennsylvania has two things I lean on for FHA buyers: PHFA statewide, and Philly First Home on top of it in the city — up to $10,000 for first-time buyers who do the counseling. Where I earn my keep is the appraisal. So much of our housing is old row homes, so I flag the roof, the paint, the party walls before we write the offer. Handle that up front and the close is smooth."
Keshabi Acharya
Senior Loan Officer, Intra-Mortgage — Licensed in OH, PA, TXKeshabi has closed FHA loans across Pennsylvania and specializes in first-time buyers — layering PHFA and Philly First Home assistance with FHA, and getting ahead of the appraisal on the state's older homes and row houses.
What to watch for on Pennsylvania FHA files:
- Property-condition flags on older row homes — roof, lead paint, party walls
- Philly First Home housing-counseling certificate and program funding status
- County FHA limits — the Philadelphia metro differs from the statewide floor
Sources & references
Where these figures come from
- 2026 FHA loan limits by county (Pennsylvania floor $541,287; the Philadelphia metro and Pike County are high-cost)U.S. Dept. of HUD
- 2026 conforming loan limit baseline ($832,750), which sets the FHA floorFederal Housing Finance Agency
- PHFA HFA Preferred and Keystone assistance terms and eligibilityPennsylvania Housing Finance Agency
- PHFA Keystone Forgivable in Ten Years (K-FIT)Pennsylvania Housing Finance Agency
- PHFA Keystone Advantage AssistancePennsylvania Housing Finance Agency
- Philly First HomeCity of Philadelphia Division of Housing and Community Development
PHFA-Participating Lender
Access to Pennsylvania's DPA programs
5.0 Google Rating
Verified borrower reviews
NMLS #2620605
Equal Housing Lender
Licensed in OH, PA, TX
Multi-state mortgage guidance
Ready to move forward?
Talk to a Pennsylvania FHA specialist
Get straight answers on limits, PHFA and Philly First Home assistance, and what you actually need to close — no obligation.