Pennsylvania Fix and Flip and Rental Loans, and the Philadelphia Rules Behind Them
Transfer taxes and Philadelphia rental paperwork, planned before you buy.
- DSCR, fix and flip and portfolio loans
- No income documentation for DSCR; most borrowers have 660+ credit, lower scores reviewed case by case
- $75,000 to $5 million
By Beltway Lending. Updated November 2026.
Investors new to Pennsylvania tend to get caught by the same two things. The first is transfer tax: Philadelphia adds 3.578% to the state's 1%, so 4.578% of the price goes to tax when a property changes hands, and Pittsburgh's combined rate is 5%. The second is the Philadelphia rental paperwork that has to be in place before a tenant signs. Both are manageable if you plan for them before the offer.
We're an investor lender in Kingsville, Maryland, and Pennsylvania is one of our busiest states.
Loans for rowhomes, rentals and rehabs
Buying to renovate. A fix and flip loan from us can cover up to 90% of the purchase and 100% of the rehab, subject to underwriting, which can mean as little as 10% down before closing costs and reserves. Terms are typically 6 or 12 months. First-time flippers qualify, and experience can earn better terms.
Buying to rent. A DSCR loan is qualified on the rent instead of your income: 30-year fixed, no balloon, with a 40-year option. Market rent can be used even if the rowhome is vacant when you buy it.
Holding several. A portfolio loan wraps two or more rentals into one loan with one payment, and there is no maximum number of properties. Request a portfolio quote.
We lend $75,000 to $5 million to individuals, LLCs, corporations and trusts, on investment property only. The rest of our terms are on Loan Facts.
Picking a lender
Licenses, lead certificates and inspections all have to land before rent starts, so ask:
- What does an extension cost if a city inspection pushes my rehab past the term?
- Do I pay interest on rehab money I haven't drawn?
- Will the closing estimate split the transfer tax the way my contract does?
Full checklist: choosing a DSCR lender.
Pennsylvania rules that change your numbers
- Transfer tax: The state charges 1%, and local governments usually add their own. Philadelphia lists a combined 4.578%. For Pittsburgh, Allegheny County lists 5% on residential deeds: 1% state, 3% city and 1% school district. Buyer and seller are jointly liable to the state, so settle the split in the contract and have the title company confirm the taxable amount. (City of Philadelphia, Allegheny County)
- Philadelphia paperwork: Before a tenant moves in, Philadelphia expects a rental license, renewed every year, and lead certification for older buildings. An owner who doesn't live in the property also needs a Commercial Activity License. On top of that, the city requires a new Certificate of Rental Suitability each time you rent to a new tenant or renew an existing tenant's lease. (Certificate of Rental Suitability)
- Lead certification: Philadelphia rentals built before March 1978 must be certified lead safe or lead free before you sign or renew a lease or get or renew the rental license, whether or not children live there. Lead-safe certificates have to be redone every four years. Budget for testing and paint repairs. (Philadelphia Landlord Gateway)
- Rental licenses outside Philadelphia: Allentown, Reading, Harrisburg, York, Lancaster, Scranton and Erie all require a rental license or registration, most with city inspections. Deadlines can be tight: Harrisburg wants a new owner registered within 10 days of purchase.
- Inspections at sale: Some towns require a use and occupancy inspection when a property sells. Under Act 133 of 2016 the sale can still close: the buyer gets 12 months to fix violations, nobody can live there until violations that make it unfit for habitation are fixed, and the town can't require an escrow or bond. (Act 133 of 2016)
The numbers
Pennsylvania's 2024 Census medians, $1,252 a month in gross rent and $277,600 in owner-occupied home value, mean a typical home costs about 18.5 years of rent, a gross ratio near 5.4%. It is a statewide snapshot taken before taxes, insurance, upkeep and vacancy, so judge each property on its own rent and costs, and compare states on our rent vs. home price page.
Own in Pennsylvania, live somewhere else?
Philadelphia treats a landlord who doesn't live in the property as a business, hence the Commercial Activity License. Financing is simpler: a DSCR loan looks at the rent, not your address or your job, and the file opens with a valid ID, two months of bank statements and a soft credit pull. Our team handles the documents and the appraisal.
Pennsylvania FAQ
Who pays Pennsylvania's realty transfer tax?
Buyer and seller are jointly liable to the state, so the split is whatever your contract says. Have the title company confirm the amount before closing.
What is the combined transfer tax in Pittsburgh?
5% on residential deeds, per Allegheny County: 1% state, 3% city and 1% school district.
Do Philadelphia rentals need a lead certificate?
If the building was constructed before March 1978, yes, whether or not children live there.
Does a Philadelphia lease renewal need a new Certificate of Rental Suitability?
Yes. The city requires a new one each time you rent to a new tenant or renew an existing tenant's lease.
Have a Pennsylvania deal? Let's talk it through.
Get a quote online or call our team.
