Conventional loans are private‑sector mortgages that are not backed by the federal government. They are the most common way to finance a home purchase in Pennsylvania.
Typical down‑payment percentages
Most lenders require a down payment of at least 3% of the home’s price. The exact percentage you’ll need depends on factors such as your credit score, debt‑to‑income ratio, and the loan amount.
- 3%–5% down: Often available to borrowers with strong credit and stable income.
- 5%–10% down: Common for many first‑time buyers and those who want a slightly larger equity cushion.
- 10%–20% down: Reduces or eliminates the need for private mortgage insurance (PMI) and may qualify you for better loan terms.
Why 20% matters
When you put less than 20% down, lenders typically require PMI to protect themselves against default. PMI adds a monthly cost until you reach 20% equity, at which point you can request removal.
Pennsylvania‑specific considerations
Many Pennsylvania counties close real‑estate transactions through attorneys rather than title companies, so you may work directly with a real‑estate attorney during the closing process. Additionally, the Pennsylvania Housing Finance Agency (PHFA) offers first‑time‑homebuyer programs that provide down‑payment assistance, often in the form of a forgivable loan or grant.
This article provides general information and is not personalized financial advice.