Income Needed to Buy in Philadelphia
Common Question: 'How much income do I need to buy a house in Philadelphia?' Based on the median home price of $275,000, lenders typically look for an annual household income of roughly $19,250. This ensures your payment stays below 28% of your gross pay.
Closing Costs in Pennsylvania
Don't forget cash to close. In Pennsylvania, buyer closing costs typically range from 2% to 5%. For a home in Philadelphia, you should budget between $5,500 and $13,750 on top of your down payment.
Rent vs Buy in Philadelphia
Is it better to rent or buy in Philadelphia? With a calculated monthly payment of ~$1,925, buying is currently more expensive monthly than the average rent. However, buying locks in your housing cost against future Pennsylvania inflation.
Hidden Costs: Property Taxes
Generic calculators often get Philadelphia wrong because they underestimate taxes. Our Philadelphia Mortgage Calculator uses the specific Pennsylvania property tax rate of 1.4%, which adds roughly $321/mo to your real payment.
First-Time Buyer Tips (FHA & PMI)
First-time buyers in Philadelphia often utilize FHA loans. Note that putting less than 20% down will trigger Private Mortgage Insurance (PMI), which can add 0.5-1% annually to your loan balance until you reach 20% equity.