27.1% of homes are selling below the asking price in the Keystone State. You can save up to $4,500 on a median home price of $298K if you buy a house in Pennsylvania NOW! Plus, inventory has also increased 5.8%.
With more homes available, the average time spent on the market has increased to 34 days. This gives you more room to negotiate and secure a competitive deal. With the market in your favor, it’s the perfect time to buy your dream Pennsylvania property.
9 Steps to Buying a House in Pennsylvania
Here’s a simple 9-step guide that’ll help you discover your place in the Keystone State:
Step 1: Decide Your Homebuying Purpose
Before you start your home search, decide why you’re buying a home. Are you looking for a long-term residence, an investment property, or a vacation home? It will help you decide on an ideal location and property type.
Cities like Philadelphia and Pittsburgh attract permanent residents with their strong job markets and well-equipped neighborhoods. Meanwhile, places like the Pocono Mountains are perfect for vacation homes, as they offer outdoor recreation opportunities.
»💲Can you afford the Keystone State?
Calculate the cost of living in Pennsylvania to estimate expenses like housing, utilities, and transportation. Get a detailed cost breakdown across cities for FREE today 🏡.
Step 2: Assess Your Financial Readiness
With the median home price of $298,400, it’s important to evaluate your financial situation before buying a home in Pennsylvania:
- Review Your Credit Score: Your credit score determines how much you can borrow and the interest rates you qualify for. A minimum credit score to buy a house in Pennsylvania is 500 for an FHA loan and 620 for a conventional loan.
- Calculate Your DTI Ratio: Lenders use the debt-to-income ratio to determine your mortgage eligibility. Ideally, your monthly debt payments should not exceed 36% of your gross monthly income.
- Determine Your Monthly Mortgage Budget: Decide how much you can afford for your monthly mortgage, including the loan, taxes, and insurance. A good rule of thumb is to keep housing costs under 28% of your gross monthly income.
» Pennsylvania Mortgage Calculator: Find how much house you can afford in the Keystone State now.🏡
Step 3: Explore Home-Financing Options
In Pennsylvania, the average down payment on a home ranges from 10% to 20%. However, there are several financing options to help you cover the costs:
1. Home Loans
| Loan Type | Down Payment | Key Benefit | Ideal For |
|---|---|---|---|
| FHA Loans | 3.5% | Low down payment, flexible credit score | First-time buyers |
| VA Loans | 0% | No down payment, lower interest rate | Veterans |
| USDA Loans | 0% | No down payment, lower interest rate | Rural homebuyers |
2. Assistance Programs
- First-Time Home Buyer Programs in PA: If you’re buying a house for the first time in Pennsylvania, you should consider the Keystone Advantage Assistance Loan Program. This program offers funding up to $6,000 or 4% of the purchase price.
- Down Payment Assistance (DPA) Programs: Explore programs like the Philly First Home Program or the PHFA Grant. The Philly First Home Program provides downpayment assistance up to $10,000 or 6% of the purchase price whichever is lower.
Step 4: Research the Pennsylvania Housing Market
In November 2024, 27.3% of homes were sold with price drops, and the median days on the market increased to 34. This indicates a shift toward a more balanced market.
- Affordable Housing: Pittsburgh and Allentown are recognized for their affordable housing options. In Pittsburgh, home prices are 46% lower than the national average, making it one of the most affordable cities in the U.S.
- Housing Inventory: PA housing inventory saw a 5.8% increase Y-O-Y, reaching 37,638 homes. This uptick suggests more properties are available, providing buyers with greater negotiating power.
- Track Mortgage Rates: The mortgage rate for a 30-year fixed home loan as of Jan 8 is at 6.71%. Experts predict rates to stay in the mid-6% range throughout 2025 and 2026, now is a great time to lock in a competitive rate.
Pennsylvania has one of the highest property taxes in the US. It ranges from 0.87% to 2.45%, with an average of 1.36%. Be sure to factor this into your home-buying budget.
Step 5: Get Pre-Approved for a Mortgage
86% of sellers favor buyers with a pre-approval. So, get pre-approved before house hunting in Pennsylvania to show you’re serious about the purchase and financially capable.
Pre-approval also speeds up the buying process, helps you negotiate better, and reduces delays in the transaction.
Get Pre Approved for a Mortgage in Pennsylvania🏡
Select Your Loan Type
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New Home Purchase
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Mortgage Refinance
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Cash-out Refinance
Step 6: Start Your Pennsylvania Home Search
Traditionally, buyers relied on Pennsylvania real estate agents to find a house, but this comes with hefty commissions. Instead, you can also:
- Search for Listings Online: Use high-tech home search sites like Houzeo to explore homes for sale in Pennsylvania. Look for neighborhoods that cater to your needs.
- Consider FSBO Homes: You can also search for Pennsylvania homes For Sale By Owner. It allows you to bypass Realtor commissions and directly negotiate with sellers.
Browse Homes For Sale in Pennsylvania By Price and Type
» 💡 What is the nicest and cheapest place to live in Pennsylvania?
Williamsport is one of the cheapest places to live in Pennsylvania. With an average household income of $48,388, you can enjoy a comfortable lifestyle in the city.
Step 7: Make a Competitive Offer
Once you’ve found a home you like, it’s time to make an offer. Here’s what your home offer should include:
- Seller’s Name and Address: Include the seller’s legal name and property address.
- Offer Price: Offer an amount based on the Fair Market Value (FMV) and comparable sales.
- Down Payment: The portion of the purchase price that you pay upfront.
- Earnest Money: A deposit to show you’re serious, often 1%-2% of the offer price, credited toward the purchase.
- Contingencies: Conditions such as home inspection, appraisal, or financing that must be met for the deal to close.
- Concessions: Requests for the seller to cover some costs, like closing fees or repairs.
- Closing and Move-in Dates: Specify when you aim to close the deal and move in, based on your and the seller’s needs.
- Offer Deadline: Specify the date by which the seller must respond to the offer.
Step 8: Conduct Inspections and Appraisals
In Pennsylvania, mold is a common problem due to the high humidity and frequent rainfall. Basements and attics, where moisture can build up, are especially at risk. You should prioritize mold inspection in PA.
Apart from that a standard home inspection in Pennsylvania should cover:
- HVAC: Checks the heating and cooling systems for proper operation.
- Plumbing: Inspects pipes and fixtures for leaks or damage.
- Electrical: Evaluates the electrical system for safety and functionality.
- Roofing: Assesses the roof for damage or wear.
- Foundation: Examines for cracks or issues with the home’s foundation.
Once the inspection is complete, your lender will arrange for a home appraisal to ensure the property’s value matches the loan amount.
Step 9: Close on Your Pennsylvania Home
Before closing, do a final walkthrough. Check if the home’s condition and repairs are in the agreed-upon condition. It can take 30 to 45 days to close on your Pennsylvania home after signing the purchase agreement.
You’ll also need to pay closing costs for buyers in Pennsylvania, which are usually 2% to 5% of the home’s purchase price. Once everything is finalized, escrow will record the deed and hand you the keys to your new Pennsylvania home!
Should You Buy a House in Pennsylvania?
Absolutely! With more homes being sold below the list price, now is the best time to buy a house in Pennsylvania. But you need to plan it properly.
Assess your financial situation to ensure your credit score is ready for quick pre-approval. Also, calculate your down payment and closing costs to be fully prepared.
Frequently Asked Questions
Is Pennsylvania a good place to buy a home?
Yes, Pennsylvania is one of the best places to buy a house in US. It has affordable housing, diverse cities, and strong job markets. So, it's attractive to families and professionals.
How much down payment do I need to buy a house in Pennsylvania?
It depends on the type of mortgage you choose. For a conventional loan, you have to put down 20%. On the other hand, FHA loans only need 5% money down.
What are the requirements to buy a house in Pennsylvania?
To buy a house in Pennsylvania, you'll need a minimum credit score of 620, proof of income, funds for a down payment, and a 36% debt-to-income ratio. You should also get pre-approved if you plan to get a mortgage.
What credit score do I need to buy a house in Pennsylvania?
For an FHA loan, you'll need a minimum credit score of 500, while conventional loans typically require 620 or higher. A better credit score can help you secure lower interest rates.
How to buy a house in Pennsylvania with no money?
USDA or VA loans allow you to buy a house with no money down in Pennsylvania.
