FHA Loan Limits in Pennsylvania: Mortgage Guidelines 2022
FHA loan limits in Pennsylvania for 2022 go from $420,680 up to $970,800 for high-cost areas for a single home family.
for a 2-unit home, the floor is set at $538,650 and goes up to $1,243,050 for high-cost areas. The FHA loan limits in Pennsylvania for 3-unit homes in Pennsylvania in 2022 go from 651,050 to $1,502,475 for Pike County (a high-cost county). For FHA Loan Limits for 4 Units the floor is set to $917,800 and for high-cost counties in Pennsylvania, the ceiling is set to $1,502,475 for Pike County.
Mortgages make the process of buying a house affordable and manageable. A borrower can either opt for conventional mortgages or an FHA loan as their house financing option. An FHA loan in Pennsylvania is an example of a suitable loan for financing your next dream home. This type of loan offers many benefits to novice homeowners earning low to moderate-income. This article provides an essential outline of all there is to know about FHA loans in Pennsylvania.
FHA Loan Limits in Pennsylvania for All Counties [TABLE]
| County | Single Family | 2 Family | 3 Family | 4 Family | Median Home Price |
|---|---|---|---|---|---|
| Adams County | $420,680 | $538,650 | $651,050 | $809,150 | $215,000 |
| Allegheny County | $420,680 | $538,650 | $651,050 | $809,150 | $246,000 |
| Armstrong County | $420,680 | $538,650 | $651,050 | $809,150 | $246,000 |
| Beaver County | $420,680 | $538,650 | $651,050 | $809,150 | $246,000 |
| Bedford County | $420,680 | $538,650 | $651,050 | $809,150 | $110,000 |
| Berks County | $420,680 | $538,650 | $651,050 | $809,150 | $185,000 |
| Blair County | $420,680 | $538,650 | $651,050 | $809,150 | $121,000 |
| Bradford County | $420,680 | $538,650 | $651,050 | $809,150 | $125,000 |
| Bucks County | $477,250 | $610,950 | $738,500 | $917,800 | $415,000 |
| Butler County | $420,680 | $538,650 | $651,050 | $809,150 | $246,000 |
| Cambria County | $420,680 | $538,650 | $651,050 | $809,150 | $70,000 |
| Cameron County | $420,680 | $538,650 | $651,050 | $809,150 | $58,000 |
| Carbon County | $420,680 | $538,650 | $651,050 | $809,150 | $280,000 |
| Centre County | $420,680 | $538,650 | $651,050 | $809,150 | $265,000 |
| Chester County | $477,250 | $610,950 | $738,500 | $917,800 | $415,000 |
| Clarion County | $420,680 | $538,650 | $651,050 | $809,150 | $86,000 |
| Clearfield County | $420,680 | $538,650 | $651,050 | $809,150 | $83,000 |
| Clinton County | $420,680 | $538,650 | $651,050 | $809,150 | $135,000 |
| Columbia County | $420,680 | $538,650 | $651,050 | $809,150 | $180,000 |
| Crawford County | $420,680 | $538,650 | $651,050 | $809,150 | $90,000 |
| Cumberland County | $420,680 | $538,650 | $651,050 | $809,150 | $240,000 |
| Dauphin County | $420,680 | $538,650 | $651,050 | $809,150 | $240,000 |
| Delaware County | $477,250 | $610,950 | $738,500 | $917,800 | $415,000 |
| Elk County | $420,680 | $538,650 | $651,050 | $809,150 | $80,000 |
| Erie County | $420,680 | $538,650 | $651,050 | $809,150 | $130,000 |
| Fayette County | $420,680 | $538,650 | $651,050 | $809,150 | $246,000 |
| Forest County | $420,680 | $538,650 | $651,050 | $809,150 | $52,000 |
| Franklin County | $420,680 | $538,650 | $651,050 | $809,150 | $191,000 |
| Fulton County | $420,680 | $538,650 | $651,050 | $809,150 | $80,000 |
| Greene County | $420,680 | $538,650 | $651,050 | $809,150 | $80,000 |
| Huntingdon County | $420,680 | $538,650 | $651,050 | $809,150 | $104,000 |
| Indiana County | $420,680 | $538,650 | $651,050 | $809,150 | $100,000 |
| Jefferson County | $420,680 | $538,650 | $651,050 | $809,150 | $75,000 |
| Juniata County | $420,680 | $538,650 | $651,050 | $809,150 | $130,000 |
| Lackawanna County | $420,680 | $538,650 | $651,050 | $809,150 | $160,000 |
| Lancaster County | $420,680 | $538,650 | $651,050 | $809,150 | $250,000 |
| Lawrence County | $420,680 | $538,650 | $651,050 | $809,150 | $89,000 |
| Lebanon County | $420,680 | $538,650 | $651,050 | $809,150 | $185,000 |
| Lehigh County | $420,680 | $538,650 | $651,050 | $809,150 | $280,000 |
| Luzerne County | $420,680 | $538,650 | $651,050 | $809,150 | $160,000 |
| Lycoming County | $420,680 | $538,650 | $651,050 | $809,150 | $150,000 |
| Mckean County | $420,680 | $538,650 | $651,050 | $809,150 | $63,000 |
| Mercer County | $420,680 | $538,650 | $651,050 | $809,150 | $117,000 |
| Mifflin County | $420,680 | $538,650 | $651,050 | $809,150 | $80,000 |
| Monroe County | $420,680 | $538,650 | $651,050 | $809,150 | $202,000 |
| Montgomery County | $477,250 | $610,950 | $738,500 | $917,800 | $415,000 |
| Montour County | $420,680 | $538,650 | $651,050 | $809,150 | $180,000 |
| Northampton County | $420,680 | $538,650 | $651,050 | $809,150 | $280,000 |
| Northumberland County | $420,680 | $538,650 | $651,050 | $809,150 | $75,000 |
| Perry County | $420,680 | $538,650 | $651,050 | $809,150 | $240,000 |
| Philadelphia County | $477,250 | $610,950 | $738,500 | $917,800 | $415,000 |
| Pike County | $970,800 | $1,243,050 | $1,502,475 | $1,867,275 | $995,000 |
| Potter County | $420,680 | $538,650 | $651,050 | $809,150 | $91,000 |
| Schuylkill County | $420,680 | $538,650 | $651,050 | $809,150 | $82,000 |
| Snyder County | $420,680 | $538,650 | $651,050 | $809,150 | $160,000 |
| Somerset County | $420,680 | $538,650 | $651,050 | $809,150 | $95,000 |
| Sullivan County | $420,680 | $538,650 | $651,050 | $809,150 | $102,000 |
| Susquehanna County | $420,680 | $538,650 | $651,050 | $809,150 | $110,000 |
| Tioga County | $420,680 | $538,650 | $651,050 | $809,150 | $127,000 |
| Union County | $420,680 | $538,650 | $651,050 | $809,150 | $190,000 |
| Venango County | $420,680 | $538,650 | $651,050 | $809,150 | $65,000 |
| Warren County | $420,680 | $538,650 | $651,050 | $809,150 | $70,000 |
| Washington County | $420,680 | $538,650 | $651,050 | $809,150 | $246,000 |
| Wayne County | $420,680 | $538,650 | $651,050 | $809,150 | $175,000 |
| Westmoreland County | $420,680 | $538,650 | $651,050 | $809,150 | $246,000 |
| Wyoming County | $420,680 | $538,650 | $651,050 | $809,150 | $160,000 |
| York County | $420,680 | $538,650 | $651,050 | $809,150 | $210,000 |
Maximum FHA Loan Amount Pennsylvania?
So what is the maximu loan amount in Pennsylvania you can borrow from a fha approved lender?
The maximum FHA loan amount available in 2022 is $420,680. This is based on the current conforming loan limit of $647,200, which increased from $548,250 in 2021. The FHA loan limits in Pennsylvania are calculated as a percentage of the conforming loan limit, and is updated annually. For example, the FHA loan limits in Pennsylvania for a single-family home in 2020 was 96.5% of the conforming loan limit of $331,760. The maximum FHA loan amount for 2-unit is $538,650, for triplex you can borrow up to $651,050 and for $809,150
The FHA loan limit is not the only factor that determines the maximum loan amount you can qualify for. Your credit score, debt-to-income ratio, and other factors will also be considered when you apply for a loan.
How FHA Loan Limits in Pennsylvania Are Determined in Counties
The Federal Housing Administration (FHA) sets a floor and ceiling FHA loan limits in Pennsylvania for each county in the United States. The floor is the lower limit while the ceiling is the upper limit on what you can borrow with an FHA loan in a specific geographical area, such as Hawaii or Alaska.
The table below shows how these limits differ by county, depending on whether you’re buying or refinancing a home. Note that the limits are different in Hawaii and Alaska, which is why they’re listed separately.
As you can see above, the FHA loan limits in Pennsylvania differ depending on the county in which you’re buying or refinancing a home. The limits are also higher if you’re refinancing a home as opposed to buying one.
If you’re interested in an FHA loan in Pennsylvania, be sure to contact a loan officer to see if you qualify. You can also read more articles on our website for more information on how to qualify for an FHA loan.
FHA Loan Limits in Pike County, PA
The maximum FHA loan amount in Pennsylvania varies by county and is higher in counties with higher home prices. In 2022, if you live in one of the cities: Saw Creek, Hemlock Farms, Pocono Woodland Lakes, Pine Ridge, Matamoras Borough, Gold Key Lake, Sunrise Lake, Birchwood Lakes, Conashaugh Lakes, Pocono Ranch Lands, Milford Borough, Pocono Mountain Lake Estates, Fawn Lake Forest, Masthope the maximum FHA loan amount for a single-family home in the most expensive county (Pike County, PA) is set to $970,800. A multifamily home (2-unit) is set at 1,243,050. And for 3-unit is 4-unit are set to (1,502,475 and 1,867,275).
If you’re thinking of buying a home in 2022, it’s important to start planning now. Talk to a lender to get an idea of how much you can borrow, and start saving for a down payment. The sooner you start the process, the more prepared you’ll be when it’s time to buy your home. Please fill up this form and one of our senior loan officers will contact you to help with a pre-approval process in Pennsylvania.
How To Apply For FHA Loan in Pennsylvania?
As mentioned earlier, an FHA loan is useful for first home buyers who fail to qualify for conventional loans due to lower credit scores and low income. An FHA loan offers borrowers a down payment of 3.5% for those with credit scores of 580 and above. Before taking out an FHA loan, a requirement is the payment of mortgage insurance premiums. In case a borrower defaults, the premiums act as security to the lender. It is important to note that FHA does not provide loans to borrowers; it only approves them. FHA-approved banks or lending institutions issue the loans. The credit score limit is not fixed. A borrower with a lower credit score can make a down payment of 10% and still access the FHA loan. But, with a lower credit score, the interest rate will be higher.
FHA Loan Requirements in Pennsylvania
The two critical requirements for qualifying for an FHA loan in Pennsylvania are credit score and the minimum down payment amounts. But, as mentioned earlier, a lower credit score does not limit a borrower from accessing the loan. As someone with a credit score of 500 to 579, I would have to pay a minimum down payment of 10%. As a borrower, other FHA loan requirements you need to have are:
Income
A steady income flow or stable employment history or at least a two-year working experience for one employer.
Down Payment
A 3.5 percent minimum down payment can be a grant or a financial gift from a family member.
Property Appraisal
A property appraisal should be done by a registered and approved appraiser. An appraisal should outline and meet the minimum FHA loan standards. If the house requires repairs, the buyer and seller should agree on who pays the cost of repairs.
Nationality
A borrower must be of legal age, a US resident, and have a valid Social Security number.
How to Improve Your Credit Score To Qualify for FHA Loan in Pennsylvania
There are a few things that you can do to improve your credit score and increase your chances of getting approved for a mortgage. Here are a few tips:
- Check your credit report for errors.
- Pay your bills on time.
- Keep your credit utilization ratio low.
- Avoid applying for new credit cards.
- Dispute inaccurate information on your credit report.
- Stay current on your student loan payments.
- Seek help from a credit counseling agency.
- Use a secured credit card.
- Get a cosigner.
- Monitor your credit score frequently.
Front- and Back-end Ratio
The front-end ratio should be less than 31% of my gross income. This ratio includes a tally of homeowners insurance, mortgage insurance, property taxes, HOA fees, and mortgage payments. The back-end ratio should be less than 43% of gross income. The ratio is a tally of any previous loans, car payments, or credit card payments.
Bankruptcy
A borrower should prove to be two years out of bankruptcy. One year is also acceptable, but a borrower should indicate proper financial management.
Foreclosure Notice
A minimum of three years out of foreclosure notices. But, exceptions can be made if the credit score improves. A new FHA loan is only applicable for primary residency. But, most of these requirements have exceptions tied to them and are flexible, depending on different circumstances.
Pennsylvania Down Payment Assistance Program
The Pennsylvania Housing Finance Agency (PHFA) administers a variety of down payment assistance programs.
- PHFA Grant: This loan program offers a $500 grant that can be used in conjunction with an HFA Preferred loan.
- Keystone Advantage Assistance Loan Program: A second mortgage of up to $6,000 or 4% of the purchase price, whichever is less, may be obtained. It was paid off in 10 years at zero percent interest.
- Keystone Forgivable In Ten Years Loan Program (K-FIT): Offers up to 5% of the purchase price or market value (whichever is less). The rate of interest is 10% per year for ten years.
Each program has its own set of qualifying criteria and a list of acceptable mortgage loan programs. You may discover more information on the agency’s website. Also, see HUD’s list of additional Pennsylvania homeownership assistance programs.