Pennsylvania Home Loans 2026 — Complete Guide
The number people miss: Pennsylvania has no cap on how much your property tax assessment can increase each year — unlike California's Prop 13 or Florida's Save Our Homes. If your county reassesses or the local market runs hot, your tax bill can jump 10-20% in a single year with no legal ceiling.
Pennsylvania Down Payment Assistance — PHFA Programs
The Pennsylvania Housing Finance Agency (PHFA) offers two separate second-mortgage assistance programs that pair with a PHFA first mortgage. These are alternatives, not add-ons to each other.
PHFA Down Payment Programs
Correction worth knowing: Some lender blogs advertise stacking HOMEstead ($10,000) and Keystone Advantage ($6,000) for $16,000 total. According to PHFA's own program rules, Keystone Advantage may not be combined with any other PHFA assistance program except the Access Modification Loan. Choose one or the other, and confirm current combinability with a PHFA-approved lender before counting on both.
HOMEstead vs. Keystone Advantage — how they differ: HOMEstead offers more money and is fully forgiven if you stay 5 years, but it is only available in specific counties and municipalities, and homes built before 1978 are excluded due to federal lead-paint rules. Keystone Advantage is available statewide with any PHFA first mortgage, but it must be repaid monthly over 10 years rather than forgiven, and requires a minimum 660 credit score.
Availability & Income Limits
HOMEstead is not available statewide — it depends on funding allocated to specific counties and municipalities, and eligibility also depends on income and purchase price limits that vary by county.
Check current HOMEstead availability for your county and confirm income limits at PHFA.org before assuming this program applies to your target area.
Current Rates
| Product | Rate | Source |
|---|---|---|
| 30-yr Conventional | 6.55% | Freddie Mac PMMS, week of July 16, 2026 |
| 15-yr Fixed | 5.93% | Freddie Mac PMMS, week of July 16, 2026 |
| PHFA Keystone Home / Keystone Government first mortgage | Below market | Set by PHFA — confirm current rate with a participating lender |
2026 Loan Limits — A Three-Tier Structure
Pennsylvania is unusual in having three distinct loan limit tiers rather than the typical two. Most of the state sits at the standard floor, five Philadelphia-metro counties get a higher FHA-only limit, and Pike County alone gets the highest tier for both FHA and conventional.
| Area | FHA Limit | Conforming (Conventional) Limit |
|---|---|---|
| 62 standard counties (incl. Pittsburgh metro, Lehigh Valley) | $541,287 | $832,750 |
| Bucks, Chester, Delaware, Montgomery, Philadelphia | $630,200 | $832,750 (standard) |
| Pike County | $1,209,750 | $1,209,750 |
Notice that the five Philadelphia-metro counties get a higher FHA limit but the same standard conforming limit — an unusual split. Verify your exact county at HUD.gov.
Property Tax in Pennsylvania
What Buyers Should Budget For
Pennsylvania's school property taxes are typically the largest slice of the bill, and unlike California, Florida, or Texas, there is no cap limiting how fast your assessed value can rise year to year — your bill tracks the market directly. The Homestead/Farmstead Exclusion, funded through state gaming revenue, reduces the taxable value of an owner-occupied primary residence, but the exact dollar amount is set locally by each school district rather than being a fixed statewide figure, so it can vary significantly even between neighboring towns. Apply through your county assessment office, typically by a March 1 deadline for the following tax year.
Pick Your Loan Type
Are you a teacher, nurse, firefighter, police officer, EMT, or veteran? Pennsylvania runs additional hero-specific loan programs on top of the general PHFA options covered here. Browse the Hero Home Loan Programs hub and select Pennsylvania for profession-specific stacking strategies.
Frequently Asked Questions
Bottom Line: Pennsylvania's home prices remain below the national median, giving buyers meaningful purchasing power, but the lack of an assessment growth cap means property tax bills can rise faster than in many other states. HOMEstead is the stronger down payment option where available since it is forgiven outright, while Keystone Advantage offers a smaller but statewide-available alternative.
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