State Buyer Guide

First-Time Home Buyer Guide
for Pennsylvania

Down payment assistance, Pennsylvania housing programs, closing cost estimates, and what to know before buying — including from FSBO sellers.

Step 1 — Do This First

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$265,000
Avg Home Price
1.49%
Property Tax Rate
~$9,275
Est. Closing Costs
2% (1% state + 1% local)
Transfer Tax

Pennsylvania Housing Finance Agency Programs

The Pennsylvania Housing Finance Agency (PHFA) is your primary source for below-market mortgage rates and down payment assistance in Pennsylvania. Programs are available through approved lenders — not directly through the HFA.

PHFA Keystone Home Loan
Competitive below-market rate — access to PHFA DPA programs

Below-market fixed-rate 30-year mortgage for first-time buyers.

Income limit: $115,800–$132,000 (varies by county and household size)
Learn more at Pennsylvania Housing Finance Agency (PHFA)
PHFA Keystone Advantage Assistance Loan
Up to 4% of purchase price (max $6,000) at 0% interest

Down payment and closing cost assistance paired with PHFA first mortgage.

Income limit: $115,800–$132,000
Learn more at Pennsylvania Housing Finance Agency (PHFA)
High Value — $240/funded loan

Credible

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Closing Costs in Pennsylvania

Typical Closing Cost Range
3.5% of purchase price

On a $265,000 home: approximately $9,275

Transfer Tax
2% (1% state + 1% local)

Pennsylvania charges a realty transfer tax of 1% state plus 1% local (city/county), totaling 2% of the sale price. In Philadelphia, the local rate is 3.278%, making total transfer costs higher.

Attorney at Closing?
No — title company state

Attorney closings are standard in Pennsylvania but not legally required. Most buyers hire one — budget $700–$1,200. For FSBO purchases, having an attorney review the agreement of sale is strongly recommended.

Key Tips for Buying in Pennsylvania

  • Radon is a widespread concern, especially in southeastern Pennsylvania — always test.
  • PA does not have a statewide homestead exemption, but many counties and school districts offer local relief — apply after purchase.
  • The Pittsburgh and Philadelphia markets differ significantly; suburbs of both cities offer solid value.
  • Get a sewer line inspection in older neighborhoods — lateral replacement can cost $5,000–$15,000.
Home Inspection

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Legal Help for Pennsylvania Buyers

While Pennsylvania doesn't require an attorney at closing, FSBO buyers should strongly consider having one review the purchase agreement and title work.

Legal Help for FSBO Buyers

Nolo

Nolo has been the go-to legal resource for DIY buyers since 1971. Their real estate guides explain purchase agreements, contingencies, and closing in language anyone can understand.

Browse Legal Guides
LegalZoom

Get a real estate attorney to review your purchase agreement or help you draft an offer letter — often for a fraction of traditional legal fees.

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US Legal Forms

Download state-specific purchase agreements, addenda, and disclosure forms — written by attorneys, ready to use in your state.

Browse Real Estate Forms

Frequently Asked Questions

What first-time buyer programs are available in Pennsylvania?

Pennsylvania first-time buyers can access programs through the Pennsylvania Housing Finance Agency (PHFA) (https://www.phfa.org/), including the PHFA Keystone Home Loan (Competitive below-market rate — access to PHFA DPA programs) and the PHFA Keystone Advantage Assistance Loan (Up to 4% of purchase price (max $6,000) at 0% interest). Federal programs like FHA loans (3.5% down) and USDA loans (0% down in eligible areas) are also available.

What are typical closing costs in Pennsylvania?

Closing costs in Pennsylvania typically run 3.5% of the purchase price. Transfer tax: 2% (1% state + 1% local). Pennsylvania charges a realty transfer tax of 1% state plus 1% local (city/county), totaling 2% of the sale price. In Philadelphia, the local rate is 3.278%, making total transfer costs higher.

Do I need an attorney to buy a home in Pennsylvania?

Attorney closings are standard in Pennsylvania but not legally required. Most buyers hire one — budget $700–$1,200. For FSBO purchases, having an attorney review the agreement of sale is strongly recommended.

What is the average home price in Pennsylvania?

The median home price in Pennsylvania is approximately $265,000. Property taxes average 1.49% of assessed value annually.

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