Buying a Home in Pennsylvania: Mortgage Programs and Guide for 2026

Pennsylvania offers a wide range of real estate markets — from the competitive Philadelphia and Pittsburgh suburbs to the more affordable Lehigh Valley, central PA, and the Pocono Mountains.

PHFA: Pennsylvania Housing Finance Agency

PHFA offers several flagship programs for PA buyers. The Keystone Home Loan Program provides competitive rates for income-eligible first-time buyers. The Keystone Government Loan Program serves FHA, VA, and USDA borrowers. The HFA Preferred program offers conventional financing with reduced PMI costs.

PHFA also offers Keystone Advantage Assistance — up to $6,000 in down payment assistance as a 0% interest second mortgage repayable over ten years.

Philadelphia: Philly First Home

The City of Philadelphia offers Philly First Home — up to $10,000 in DPA for first-time buyers purchasing within city limits, with income requirements and property eligibility criteria.

The Poconos: Vacation and STR Investment

The Pocono Mountains have significant investor activity in short-term vacation rentals. DSCR loans with projected STR income from market analysis tools are the primary financing vehicle for Pocono investment properties.

Rural PA and USDA

Large portions of central and western Pennsylvania are USDA-eligible — offering zero down payment for income-qualified buyers in qualifying areas.

Transfer Taxes

Pennsylvania charges a 1% state realty transfer tax. Local municipalities add another 1%. In Philadelphia, total transfer taxes reach 4%. Include these in your closing cost budget from the start.

At East Coast Mortgage, we originate mortgages across Pennsylvania for primary residence buyers, vacation buyers, and investors. Submit your scenario for a customized financing plan.