Pennsylvania has some of the highest transfer taxes in the country, and in Philadelphia and Pittsburgh they climb far above the state average. On a $2M purchase, that is a closing cost to plan for long before the loan amount.
In short: LendingStreet offers jumbo DSCR loans of about $1.5M to $5M+ on Pennsylvania rentals with 1 to 8 units, qualified on rent with no W-2s or tax returns. Transfer taxes, uneven county assessments and high school taxes in many suburbs are the Pennsylvania-specific items that shape a large file. Max LTV on larger balances varies by program.
In Philadelphia, Rittenhouse, Society Hill, Queen Village, Fairmount and Fishtown have rowhomes and small buildings that reach high values, and Main Line towns such as Bryn Mawr, Villanova, Gladwyne and Wayne have large homes. Bucks County, including New Hope, adds historic homes with strong rents.
In Pittsburgh, Shadyside, Squirrel Hill, Lawrenceville and the North Side have small buildings and large homes near universities and hospitals, and Sewickley and Fox Chapel carry high values. The Poconos, around Lake Harmony, Lake Naomi and Lake Wallenpaupack, are the state's main vacation rental market.
Demand in these areas comes from deep, stable employers. Philadelphia's universities and health systems, the pharmaceutical and life sciences companies along the Main Line and in the western suburbs, and Pittsburgh's hospitals, universities and robotics firms all bring tenants who can pay high rents. That steadiness helps a lender support rent on a large file, especially with signed leases.
| Area | Typical high-value property | What to check |
|---|---|---|
| Rittenhouse, Society Hill, Fishtown | Rowhomes and 5-8 unit buildings | City transfer tax, licensing, older systems |
| Main Line, Bucks County | Large homes | School taxes, comparable leases |
| Shadyside, Squirrel Hill, Poconos lakes | Small buildings, vacation homes | Allegheny assessments, township STR rules |
Pennsylvania has no statewide reassessment schedule, and some counties go many years between countywide reassessments. That means two similar properties can carry very different bills, and an appeal by a school district after a sale can raise the assessment of a recently purchased property. Ask whether the county or school district has a history of appealing assessments after high-value sales.
School taxes are often the largest part of the bill, especially on the Main Line and in other Philadelphia and Pittsburgh suburbs. Budget on the current total of county, municipal and school taxes, and keep a cushion if a reassessment or appeal is possible.
Philadelphia adds its own layer. Landlords need a rental license, and many buildings need a certificate of rental suitability and lead-safe certification for older units. Pittsburgh requires rental registration. Older rowhomes and walk-ups often have mixed updates, so an inspection and a list of improvements make a large file easier for both the appraiser and the insurer.
This example is illustrative and not a quote. An investor buys an eight-unit building in Pittsburgh's Shadyside for $2,100,000. Units lease for about $1,950 each, so gross rent is $15,600 a month. County, city and school taxes are budgeted at $3,100 a month and insurance at $600. The table compares two loan sizes; estimated principal and interest assumes a 30-year amortization.
At 75% LTV the loan is $1,575,000, estimated principal and interest is about $10,611, the total payment is about $14,311 and DSCR is about 1.09x. At 70% the loan is $1,470,000, the payment is about $13,604 and DSCR is about 1.15x. Both columns clear the 1.0x standard minimum. A school district appeal that raised the assessment would shrink that margin, which is why the tax history belongs in your review.
| Item | 75% LTV | 70% LTV |
|---|---|---|
| Purchase price | $2,100,000 | $2,100,000 |
| Loan amount | $1,575,000 | $1,470,000 |
| Down payment | $525,000 | $630,000 |
| Estimated principal and interest | $10,611 | $9,904 |
| Taxes and insurance | $3,700 | $3,700 |
| Total monthly payment | $14,311 | $13,604 |
| Monthly rent | $15,600 | $15,600 |
| DSCR | About 1.09x | About 1.15x |
Philadelphia requires short-term rental operators to hold a license and limits non-owner-occupied nightly rentals in many residential zones. Pittsburgh has its own registration rules. In the Poconos, townships and HOAs set the rules, and some lake communities restrict short stays.
Some programs can qualify a Pennsylvania vacation home on projected revenue. Confirm township and HOA rules before you rely on nightly income.
Many Pennsylvania jumbo files are 5 to 8 unit buildings in Philadelphia, Pittsburgh, the Lehigh Valley or State College, or groups of rowhomes and twins. Buildings of 9 or more units go to our commercial programs.
A blanket portfolio loan can refinance five or more rentals together with one closing and release provisions.
The qualifying idea does not change: rent divided by the full payment of principal, interest, taxes, insurance and any HOA dues, with 1.0x as the standard minimum. The credit floor is still 620, LLC ownership is normal and 30-year terms are available.
What changes is the depth of review. On jumbo balances, max LTV is often below the 80% purchase and 75% cash-out limits, reserve requirements are usually higher and some programs order a second appraisal or a desk review. Pricing on large loans is set case by case.
Pennsylvania charges a state realty transfer tax plus a local tax, and buyer and seller customarily split the total. Philadelphia and Pittsburgh charge local transfer taxes far higher than most municipalities, so ask your title company for the exact figure.
Bring these with your first request and the review goes faster.
Our investor loans are business-purpose loans on non-owner-occupied property, and we lend on 1 to 8 unit rentals in Philadelphia, Montgomery, Delaware, Allegheny, Bucks and Monroe counties and elsewhere in Pennsylvania.
Share the property address, purchase price or estimated value, current or market rent and your target loan amount. The team will size the loan at a few leverage levels and show where the ratio lands. Use the form below or call (877) 298-1001 to get a quote.
Buyer and seller customarily split it, but contracts can differ. Philadelphia and Pittsburgh charge much more than the typical municipality.
In Pennsylvania, school districts can appeal assessments, and recent high-value sales are sometimes targeted. Ask about appeal history before you buy.
Yes, if it is non-owner-occupied investment property with 1 to 8 units and the rent supports the payment.
Yes, if township and HOA rules allow short-term rentals. Some programs qualify on projected STR revenue.
No. The loan qualifies on the property's rent. You still need a 620 or higher credit score, reserves and entity documents if you buy in an LLC.
Yes. Cash-out goes up to 75% LTV on standard programs, often lower on jumbo balances, and seasoning varies by program.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
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