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Pennsylvania Loan Programs

Every Pennsylvania loan program Mike runs

One branch manager, the full Pennsylvania menu. PHFA down payment help, FHA, conventional, VA, USDA, jumbo, self-employed, and investor financing. Pick the situation that matches yours, then send your scenario. Mike maps the numbers to your county and your credit profile.

Mike does not sell one loan. He fits the first mortgage to your file, then layers assistance where it helps. Here is the shortlist so you can find your situation fast.

ProgramWho it fitsDown paymentKey Pennsylvania detail
PHFA K-FITBuyers who need cash helpAssistance covers it5% of price/value, no cap, forgiven over 10 yrs, 660 FICO
Keystone AdvantageWant a capped repayable secondAssistance covers partLesser of 4% or $6,000, 0% over 10 yrs
FHALower credit, slim savings3.5%2026 PA floor $541,287
Conventional 97 / HFA PreferredMid-600s and up3%MI cancels at 20% equity; HFA Preferred has no first-time rule
VAEligible veterans$0No monthly mortgage insurance
USDARural and small-town PA$0Income capped near $122,800, address-specific
JumboAbove the county limitVariesBaseline $832,750; Pike County $1,209,750
Bank-statement / 1099Self-employedVariesQualify on deposits, not net tax income
DSCRInvestorsVariesQualify on the property's rent

PHFA down payment assistance: K-FIT and Keystone Advantage

Pennsylvania runs its down payment help through PHFA, the state housing finance agency. K-FIT gives 5% of the lesser of price or appraised value with no dollar ceiling, and it forgives 10% a year until it disappears at year ten. Keystone Advantage is the repayable alternative, capped at the lesser of 4% or $6,000 at 0% over a ten-year term. Both want a 660 middle score. The down payment assistance page compares them line by line.

FHA loans in Pennsylvania

FHA is the common landing spot when credit sits lower or savings are thin. It allows 3.5% down and forgives past credit bumps more readily than conventional financing does. The 2026 FHA floor in Pennsylvania is $541,287 on a single-family home, which covers most of the market in Erie, Scranton, Harrisburg, and Reading. K-FIT can ride on top of an FHA first mortgage, so the assistance and the low down payment stack.

Conventional 97 and PHFA HFA Preferred

Once your score clears the mid-600s, conventional financing often beats FHA because the private mortgage insurance cancels at 20% equity instead of running the life of the loan. Conventional 97 allows 3% down. PHFA's HFA Preferred is its conventional route up to 97% LTV, carries reduced mortgage insurance, and, unlike the Keystone Home Loan, has no first-time-buyer requirement. It still follows PHFA's HFA Preferred income limits, which vary by county.

VA loans for Pennsylvania veterans

Eligible veterans, active-duty service members, and surviving spouses can buy with zero down and no monthly mortgage insurance. Pennsylvania holds a large veteran population, from Carlisle Barracks and Tobyhanna Army Depot to the Philadelphia and Pittsburgh VA communities. A VA loan also waives PHFA's first-time rule, so a veteran layering Keystone assistance keeps that exemption. Mike handles Certificate of Eligibility questions and entitlement restoration when you use the benefit a second time.

USDA loans in rural Pennsylvania

Step outside the Philadelphia and Pittsburgh metro cores and a large share of the state qualifies for a zero-down USDA loan, including the Northern Tier, much of central Pennsylvania, and the farmland around Lancaster. USDA caps household income near $122,800 for one to four people in most counties as of 2026, and the figure is address-specific. Confirm your address at USDA's eligibility tool before you count on it.

Jumbo loans and Pennsylvania's high-cost county

A loan above your county's conforming limit is a jumbo. The 2026 baseline in almost every Pennsylvania county is $832,750, up from $806,500 the year before. Pike County, up in the Poconos, is the state's one high-cost county at $1,209,750, so the common claim that Pennsylvania has no high-cost counties is simply wrong. Jumbo underwriting wants stronger reserves and cleaner documentation. Mike runs full-doc, alt-doc, and self-employed jumbo paths.

Self-employed and bank-statement loans

Tax returns understate what many business owners really earn, because legal deductions shrink the net figure underwriters read. Bank-statement loans fix that by qualifying you on 12 or 24 months of deposits with an expense-factor adjustment. There are also 1099 loans for contractors and agents, and asset-qualifier loans that build income from liquid accounts. These are Non-QM programs, so they sit outside standard agency rules and price on their own terms.

Investor and DSCR loans

DSCR loans qualify on the rental income a property produces, not your personal tax return. That keeps investors moving without stacking personal debt-to-income limits. Mike runs standard rental and short-term-rental DSCR options, cash-out refinances for pulling equity into the next deal, and portfolio structures for buyers scaling past a few doors. Markets like Pittsburgh, Allentown, and the wider Lehigh Valley draw steady rental demand.

Bridge financing to buy before you sell

Move-up buyers in tight Pennsylvania markets often need to buy the next house before the current one sells. A bridge structure lets you write a clean, non-contingent offer, which reads far stronger to a seller than one hinging on your sale closing first. Mike underwrites the bridge against your existing equity plus the new purchase, then coordinates the two closings so you are not carrying two mortgages any longer than you must.

Pennsylvania loan program FAQ

What down payment assistance does PHFA offer in Pennsylvania?

PHFA runs two main options. K-FIT gives 5% of the lesser of price or appraised value with no dollar cap, forgiven 10% a year over ten years. Keystone Advantage is a repayable second worth the lesser of 4% or $6,000 at 0% interest over a ten-year term. Both need a 660 credit score. K-FIT is the one most Pennsylvania buyers ask for because it is forgivable rather than repaid.

What is the 2026 conforming loan limit in Pennsylvania?

$832,750 on a one-unit home in almost every Pennsylvania county for 2026, up from $806,500 in 2025. Pike County is the exception at $1,209,750, so Pennsylvania is not an all-baseline state. A loan above your county limit is a jumbo, which carries stricter underwriting and reserve requirements. Confirm your county's figure at the FHFA county file.

Can self-employed buyers qualify in Pennsylvania without tax returns?

Yes. Bank-statement loans qualify you on 12 or 24 months of deposits with an expense-factor adjustment, not the net figure left after deductions. There are also 1099 loans and asset-qualifier loans that build income from liquid accounts. These are Non-QM programs, so they sit outside standard agency rules and price differently. Mike matches the method to how your income actually shows up.

Do I have to be a first-time buyer to use a PHFA program?

Not always. The Keystone Home Loan uses the three-year rule, meaning no principal residence owned in the past three years, and that rule is waived in target areas and for eligible veterans. HFA Preferred, PHFA's conventional option up to 97% LTV, has no first-time requirement at all. K-FIT assistance can pair with either path, so repeat buyers still have room to use it.

Which Pennsylvania areas qualify for a zero-down USDA loan?

Most of Pennsylvania outside the Philadelphia and Pittsburgh metro cores, including the Northern Tier, much of central Pennsylvania, and the farmland around Lancaster. USDA asks for no down payment and caps household income near $122,800 for one to four people in most counties as of 2026. Eligibility is address-specific, so confirm your exact address at USDA's eligibility tool.