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Key Takeaways for Pennsylvania Home Buyers:

Here's what you need to know to get started if you’re looking at buying in the Keystone State:

Average Home Prices in Pennsylvania

As of 2025, the median sale price for a single-family home in Pennsylvania is $$389,400

Average home price:

  • Philadelphia: $231,560
  • Pittsburgh: $240,402
  • Allentown: $300,661
  • Erie: $189,958
  • Harrisburg: $256,830

Source: zillow.com/home-values

Average Home Size in Pennsylvania

The average size for a single-family home in Pennsylvania is approximately 1,679 square feet.

Average home size:

  • Philadelphia: 1,259 square feet
  • Pittsburgh: 1,574 square feet
  • Allentown: 1,912 square feet
  • Erie: 1,599 square feet
  • Harrisburg: 1,960 square feet

Source: https://fred.stlouisfed.org/

Pennsylvania State Taxes

  • Pennsylvania has a flat state income tax rate of 3.07%, one of the lowest in the nation.
  • Property taxes in Pennsylvania vary by county, but the statewide average effective rate is around 1.5%.
  • Pennsylvania’s state sales tax rate is 6%, with some local jurisdictions adding up to 2% more.

How Much Can You Afford in Pennsylvania?

Recommended
Monthly Payment:
$750.00

affordability graph legend
$750.00
$1050
$1350

Affordable Home Prices With Your Recommended Payment

$107,844.08 house with $9,804.01 down. (10%)

$117,648.09 house with $19,608.02 down. (20%)

$127,452.10 house with $29,412.02 down. (30%)

These examples use the loan term provided and assume a fixed-rate mortgage with an interest rate of 6%.

Pennsylvania Down Payment Assistance Programs

Keystone Advantage Assistance Loan Program

This program helps eligible home buyers cover down payment and closing costs with a second mortgage loan. Borrowers can receive up to 4% of the home’s purchase price or $6,000 (whichever is less) at 0% interest, repaid over 10 years.

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More about this program
  • Available to qualified borrowers using a PHFA first mortgage
  • Up to 4% or $6,000 in assistance (whichever is less)
  • 0% interest loan with 10-year repayment term
  • Minimum credit score: 660
  • May be used for down payment or closing costs only
  • Cannot be combined with other PHFA assistance (except Access Modification Loan)
  • Must have less than $50,000 in liquid assets after closing
  • Eligible for use with Conventional, FHA, VA, or USDA loans

Keystone Forgivable in Ten Years Loan Program (K-FIT)

The K-FIT program helps Pennsylvania home buyers with down payment and closing costs by offering a second mortgage loan that’s completely forgivable over 10 years. Eligible buyers can receive 5% of the home’s purchase price or appraised value (whichever is less), with no cap on the dollar amount.

purchase-g-radio
More about this program
  • Forgivable second mortgage—10% forgiven each year over 10 years
  • Up to 5% of the purchase price or appraised value
  • No maximum assistance cap
  • Minimum credit score: 660
  • Must be used with a PHFA Keystone Home Loan
  • Can’t be combined with other PHFA assistance (except ACCESS)
  • Assistance must go toward down payment or closing costs only
  • Minimum loan amount: $500
  • Liquid assets after closing must be under $50,000
  • Eligible with Conventional, FHA, VA, or USDA loans

Essex + National Homebuyers Fund FHA Program

This down payment assistance program helps buyers get into a home with little to no upfront cost, offering up to 101.5% financing through an FHA first mortgage and a second lien.

purchase-g-radio
More about this program
  • FHA loan covers 96.5% of the purchase price
  • Second lien covers 3.5% or 5% for down payment or closing costs
  • Minimum credit score: 600 (660 for manual underwriting)
  • No first-time buyer requirement
  • No max DTI with DU/LP approval
  • Homebuyer education required (Fannie Mae HomeView – free online)
  • Non-occupant co-borrowers allowed
  • Eligible properties: Single-family homes, duplexes (2 units), PUDs, condos (agency approved), townhomes, manufactured homes allowed (except single-wides)

Lakeview National Community Lending Program

The Lakeview National program supports low- to moderate-income buyers with down payment assistance and flexible financing to make homeownership more accessible.

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More about this program
  • 30-year fixed-rate conventional mortgage
  • Second lien offers up to 4% for down payment assistance
  • Max LTV/CLTV: 97% / 105%
  • Income limit: Up to 140% of area median income (AMI)
  • Minimum credit score: 660
  • DTI: Lesser of 50% or AUS approval
  • First lien acquired by Lakeview; second lien from an approved DPA provider
  • Eligible properties: Single-family detached or attached homes, single-family homes with accessory units (must be zoned single-family), PUDs and condominiums, rural properties (must be residential in nature)

Churchill Mortgage is an approved lender for these down payment assistance programs. Contact us today to see if you qualify!

Frequently Asked Questions

Check our FAQs for responses to our most popular questions from Pennsylvania Home Buyers.

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How Much Should I Budget for Closing Costs in Pennsylvania?

Home buyers in Pennsylvania can typically expect to pay between 2% to 5% of the home's purchase price in closing costs. This range covers lender fees, title services, taxes, insurance, and other administrative expenses.

For example, on a $300,000 home, you might budget $6,000 to $15,000 in total closing costs.

You will receive your closing costs from your Home Loan Specialist in a Loan Estimate that you will receive after you apply for your home loan and in the Closing Disclosure document that is provided before your official closing day.

Bank
What Are the Most Popular Home Loan Types in Pennsylvania?

Pennsylvania home buyers have a variety of loan options, but the most commonly used mortgage types include:

  • Conventional Loans – Ideal for borrowers with strong credit and stable income. Often used with programs like Keystone loans through PHFA.

  • FHA Loans – Backed by the Federal Housing Administration, these are popular among first-time buyers thanks to lower down payment and credit score requirements.

  • VA Loans – Available to eligible veterans, active-duty service members, and some military spouses. These loans require no down payment or mortgage insurance.

  • USDA Loans – Great for buyers in rural areas, offering 100% financing for qualifying homes and borrowers.

  • PHFA Loans – Offered through the Pennsylvania Housing Finance Agency, these loans provide competitive rates and can be paired with down payment assistance programs like Keystone Advantage or K-FIT.

Collaboration
How Can I Find a Trusted Local Pennsylvania Realtor to Work With?

Churchill Mortgage's experienced Home Loan Specialists work closing with a network of trusted, local real estate agents across the state of Pennsylvania. Just ask for a referral and we'll provide you with a professional who is committed to finding the right home for you.

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How Do Schools Rank in Pennsylvania?

Pennsylvania is home to some of the top-performing public school districts in the country, especially in suburban areas near major cities like Philadelphia and Pittsburgh. Rankings are typically based on test scores, graduation rates, college readiness, and student-to-teacher ratios.

Here are a few of the highest-ranked school districts in Pennsylvania:

  • Tredyffrin-Easttown School District (Chester County) – Consistently ranked #1 in the state for academic excellence, teacher quality, and college prep.

  • Lower Merion School District (Montgomery County) – Known for strong academics and extracurricular programs, serving suburbs just outside of Philadelphia.

  • Radnor Township School District (Delaware County) – Offers high test scores and excellent college prep programs.

  • Mt. Lebanon School District (Allegheny County) – A top-ranked district near Pittsburgh with a strong focus on academics and community involvement.

  • North Allegheny School District (Allegheny County) – Recognized for its rigorous academic programs and high graduation rates.

To explore detailed rankings, school performance data, and parent reviews, visit trusted resources like GreatSchools.org or the Pennsylvania Department of Education.

Reviews from Pennsylvania Home Buyers

★ ★ ★ ★ ★

"John was very personable, informative and patient with me through the whole process. The communication was great, everyone was genuinely curious and provided me many options to problem solve along the way. Actually Both John's that I worked with made me feel like I wasn't navigating this process alone."

Mychelle W.
Philadelphia, PA
★ ★ ★ ★ ★

"Just very helpful and patient throughout the process especially because I am a new homeowner and had 0 clue how to do any of this!"

Chase M.
Tyrone, PA
★ ★ ★ ★ ★

"Jennifer was very attentive, responded in time and was able to answer all my questions. She walked me through paperwork several times and the communication between her and I was amazing. Definitely a great experience."

Julio P.
Bushkill, PA

4.9 / 5

gold star gold star gold star gold star gold star

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Pennsylvania Branch Locations

Churchill Loan Officers in Pennsylvania

Conforming and high balance allowed. Cooperative housing not eligible. Not all applicants will qualify. Not a commitment to lend. Other restriction or limitations to any program may apply.

This calculator is being provided for educational purposes only. The provided values for interest rates are examples only and do not reflect Churchill Mortgage Product terms & offers. The results are estimates that are based on information you provided and may not reflect Churchill Mortgage Product terms. The information cannot be used by Churchill Mortgage to determine a customer's eligibility for a specific product or service. All financial calculators are provided by a third-party and are not controlled by or under the control of Churchill Mortgage. Churchill Mortgage is not responsible for the content, results, or the accuracy of information.

These calculations are hypothetical examples designed to for illustration purposes only. Consult a Home Loan Specialist for more specific information regarding payments, terms, etc.

As a responsible lender, Churchill Mortgage is committed to the principles outlined in federal and state lending laws ensuring all potential borrowers have access to the same information, services, and opportunities throughout the home loan process.