FHA loans in Pennsylvania

Buying a home in Pennsylvania can feel overwhelming, especially when you’re comparing loan options. FHA loans help many first-time and moderate-income buyers qualify with a low minimum down payment and more flexible credit standards than conventional loans. Learn more about who's eligible, 2026 loan limits, FHA loan requirements for Pennsylvania, property standards, and down payment assistance options.

How do FHA loans work?

FHA loans have specific rules that help make them more accessible than many conventional options. FHA loan requirements include steady income, a minimum credit score, a minimum down payment, property requirements, and a maximum loan amount that varies by county. FHA loan rates are competitive and often lower than for other loan types.

FHA loan limits are set each year by the Department of Housing and Urban Development, and vary by county within each state, including Pennsylvania.

Pennsylvania FHA loans can be used to buy various property unit types from single-family homes to multifamily properties with up to 4 units, including houses, condominiums, townhouses, and mobile or manufactured homes.

Properties must meet FHA guidelines, and borrowers must pay an up-front and an annual mortgage insurance premium (MIP). This insurance protects the lender if the borrower defaults and is part of what allows lenders to approve buyers with lower credit scores or smaller down payments.

Anyone who meets the requirements and agrees to live in the home they're buying as their primary residence can qualify.

What are the 2026 FHA loan limits in Pennsylvania?

FHA loan limits change every year, and Pennsylvania's limits vary by county based on local housing prices. Areas with higher home values qualify for higher limits, while lower-cost counties stay closer to the national floor.

The limits are based on median home prices in each county, up to 150% of the national conforming loan limit. Exceptions are made for homes in Alaska, Hawaii, Guam, and the U.S. Virgin Islands due to the higher construction costs.

For 2026, the FHA loan limits for a one-unit home range from $541,287 in low-cost areas to $1,249,125 in high-cost counties.

Here are the FHA loan limits by county in Pennsylvania for buying 1- to 4-unit homes. Use the HUD lookup tool to confirm your county’s current limit, then speak with a loan officer to see what you can qualify for.

FHA loan requirements

Requirements for FHA loans can vary by lender and by program, so the guidelines below reflect what you can generally expect through Rocket Mortgage. It’s always best to check with your lender to confirm the exact qualifications for your situation.

The chart below outlines what you’ll usually need to qualify for an FHA mortgage in Pennsylvania, including the minimum down payment, credit score, debt-to-income ratio, income, appraisal, and inspection, and more.

FHA loan down payment assistance programs in Pennsylvania

Several down payment assistance programs are available to home buyers in Pennsylvania, mainly through the Pennsylvania Housing Finance Agency. You can find online resources on down payment assistance in Pennsylvania.

Rocket Mortgage offers FHA loans for those looking to purchase or refinance a home in Pennsylvania.

Additionally, the following programs offer down payment assistance in Pennsylvania.

Keystone Advantage Assistance Loan Program

The Keystone Advantage Assistance Loan Program provides second mortgages to help qualified borrowers cover closing costs and a down payment. The program can provide up to 4% of the purchase price or $6,000, whichever is less, for down payment and closing costs. To qualify, you must meet income limits and have a minimum credit score of 660.

HOMEstead Downpayment and Closing Cost Assistance Loan

The HOMEstead Downpayment and Closing Cost Assistance Loan offers no-interest second mortgages for up to $10,000. The loan is forgiven at a rate of 20% per year over five years. Borrowers must meet income requirements.

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

The Keystone Forgivable in Ten Years Loan Program provides a second mortgage for up to 5% of the purchase price or appraised value, whichever is less. There is no maximum loan amount. The loan is forgiven at a rate of 10% per year and requires a credit score of at least 660.

Pros and cons of buying a home in Pennsylvania with an FHA loan

Learn more about the pros and cons of FHA loans when purchasing a home in Pennsylvania.

Pros

• Realistic in areas with modest FHA loan limits: In most Pennsylvania counties, FHA limits line up well with the median home price, making them a realistic financing tool for average buyers.
• Combine loans with assistance programs: FHA loans can be paired with Pennsylvania down payment assistance programs, which can further help cover down payments and closing costs.
• Helps finance older houses. Many Pennsylvania homes are older, and FHA’s rehab option, the 203(k) loan, allows buyers to finance necessary renovations when buying a fixer-upper. While Rocket Mortgage currently doesn't offer FHA 203(k) loans, this is a good option to be aware of.

Cons

• Mandatory mortgage insurance. FHA loans require up-front and annual MIP, which adds to the overall cost. For buyers planning to stay in the home long-term, this ongoing expense can make the loan more expensive than a conventional mortgage.
• Tougher fit for historic housing stock: FHA appraisal standards can pose issues for older townhouses in Philadelphia and for landmark properties in towns like Lancaster and Bethlehem.
• Tax burden challenges: Higher property tax bills in some counties can make FHA DTI requirements harder to meet.

FAQ

Here are a few frequently asked questions about FHA loans in Pennsylvania.

Is it hard to qualify for an FHA loan?

In some cases, it can be easier to qualify for an FHA loan than a conventional loan. Consult with your preferred lender to determine which loan type makes the most sense for your specific situation.

Do FHA loans require private mortgage insurance (PMI)?

FHA loans do not require PMI. Instead, they require MIP, which includes an up-front fee of 1.75% of the loan and an annual MIP fee paid monthly. MIP protects the lender in case of default.

How much is the minimum down payment for an FHA loan in Pennsylvania?

The minimum down payment is typically 3.5%, but it can vary by lender. It also may depend on whether you’re receiving down payment assistance. Check with your lender to see what might apply in your specific situation.

What are today’s FHA mortgage rates?

FHA mortgage rates can vary by lender and market conditions. You can check current FHA rates with Rocket Mortgage here.

What is the minimum income for an FHA loan?

There isn’t a minimum income for FHA loans. However, your lender may have DTI requirements that could be affected by your income.

The bottom line: Using an FHA loan to buy a home in Pennsylvania

FHA loans can make homeownership in Pennsylvania more accessible for buyers who may not qualify for conventional financing. With low down payment requirements and flexible credit standards, they’re a practical option for many first-time or moderate-income buyers. You'll want to review any requirements set by your lender, as well as explore available state assistance programs, to see if an FHA loan fits your needs.

When you’re ready to take the next step, you can apply for an FHA loan with Rocket Mortgage.

¹To qualify for this offer, you must meet all standard FHA eligibility requirements. In addition, your total mortgage payment, including taxes and insurance, cannot exceed 38% of your income, your debt-to-income (DTI) ratio cannot exceed 45%, and you must have 12 months of verifiable housing history immediately prior to your application, no late payments 30 days or greater in the last 12-months, and no derogatory marks on your credit report. Not available on jumbo loans. Asset statements may be needed, no more than 1 day of non-sufficient fund fees are allowed in the most recent 2 months prior to application. Additional restrictions/conditions may apply.

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