Pennsylvania Apartment Loans

Pennsylvania: In the Spotlight

Pennsylvania, often known as the Keystone State, is home to around 12.7 million people. The state of Pennsylvania is the 6th most populous state, and is also home to cities like Philadelphia, which is the most populated city in the state with more than 1.5 million residents. Pittsburgh is another key location in the state, with more than 302,000 people calling the region home.

Philadelphia, Pennsylvania was the site of the signing of the Declaration of Independence in 1776.
UPMC is the largest private employer in Pennsylvania.
Agriculture, Manufacturing, and Mining are the largest industries in the state.
The average household income is $61,744.
The average age in Pennsylvania is 40 years old.
Pennsylvania has 5.5 million employees across the state.
The home ownership rate is roughly 68%, which leaves around 32% of the residents looking for apartments and rental properties.

How Lenders Underwrite Apartments in Pennsylvania

Transfer taxes are a large closing cost on Pennsylvania apartment purchases. The state realty transfer tax is 1% of value, and local governments add their own. In Philadelphia the city rate rose to 3.578% on July 1, 2025, for a combined rate of 4.578%. In Pittsburgh the combined rate is 5%: 3% city, 1% school district, and 1% state. Buyer and seller customarily split the tax, so a buyer's share adds to total project cost and raises the equity needed at a given loan amount. Lenders and buyers also deduct the seller's share from projected sale proceeds when a bridge loan will be repaid by a sale.

Selling the company that owns a building can trigger the tax as well. Under state law, a real estate company is treated as acquired when 90% or more of its ownership changes hands within three years, and the tax is then due on the company's Pennsylvania real estate. Philadelphia's test has been 75% within six years since July 1, 2017. Recapitalizations and partner buyouts need to be checked against both tests before the lender's closing budget is final.

Property tax adds a separate risk. Pennsylvania school districts can appeal assessments to raise them. In Valley Forge Towers Apartments v. Upper Merion Area School District (2017), the Pennsylvania Supreme Court held that the state constitution's uniformity clause does not allow a district to appeal only commercial properties, such as apartment complexes, while leaving homes alone. Districts can still appeal, so lenders ask whether an appeal is pending and test the loan at a higher assessed value after a purchase.

Stabilized Pennsylvania buildings commonly fit Fannie Mae, Freddie Mac, or bank loans. Include transfer tax in your budget and run the result through the DSCR calculator.

Pennsylvania Apartment Loan and Lending Options

In the state of Pennsylvania, there are several different ways that you can finance your new apartment investment, whether you’re looking for a massive multi-unit tower in Scranton or a simple eight-unit property in an up-and-coming neighborhood of Harrisburg. We work with opportunities like:

Finance Your Pennsylvania Apartment Building Now

Apartment.loans has an expert team specializing in apartment building loan products and options available for borrowers and investors of apartment properties throughout Pennsylvania. Whether you are looking to finance a small apartment building, a complex with hundreds of units, or a cooperative, our team endeavors to meet all of your apartment mortgage loan needs. Pennsylvania is a state that has been a decently strong market for apartment property loans and we are no strangers to arranging high-quality loans in the state for investors. We have a plethora of many available loan products to help qualified borrowers purchase or refinance an apartment property.

Apartment.loans offers apartment loans with terms and amortizations of up to 30 years, with recourse and non-recourse options, and flexibility when it comes to prepayment. Pennsylvania apartment building loans typically close within 45 days of application. With the apartment.loans streamlined application process (with no-cost and no-obligations), gain unbiased access to the best possible apartment financing in the state of Pennsylvania!

Our apartment loan brokerage and lending strengths are available in markets throughout the state, with a particularly strong presence in Philadelphia, Pittsburgh, Scranton, and Harrisburg.

Apartment loans from $750,000 and up.