Two Numbers: What the Loan Covers, What It Does Not
Program and regulatory figures verified October 6, 2026. Details change; confirm your scenario with us.
There is no clever arithmetic here. There is one multiplication most Pennsylvania buyers never do, and it is the one that decides whether the closing works.
The one calculation to do first
Take your target purchase price. If you are buying in Philadelphia, multiply by .04578. That is your total realty transfer tax. Buyer and seller customarily split it evenly, so halve it for a planning figure, while remembering the City's own words: the split is not a legal requirement and the City may collect the whole amount from either party.
| Philadelphia price | × 4.578% | Half |
|---|---|---|
| $300,000 | $13,734 | $6,867 |
| $389,524 | $17,834 | $8,917 |
| $400,000 | $18,312 | $9,156 |
| $500,000 | $22,890 | $11,445 |
| $600,000 | $27,468 | $13,734 |
Outside Philadelphia the Commonwealth's 1% applies, plus a local rate. We do not publish local rates we have not verified, so ask your closing agent or county Recorder of Deeds for it and add it in.
What the loan covers
Up to 100% of the purchase price with no private mortgage insurance, which makes the down payment potentially $0. Five-percent-down options exist, and the ceiling is $2M.
What it does not cover: transfer tax, recording fees, prepaid items, and reserves. "No money down" and "no money needed" are different statements, and in Philadelphia the gap between them runs to five figures.
The debt side of the calculation
Underwriting counts a monthly student loan obligation. The question is which number.
| Balance | Agency at 1% | FHA at 0.5% | Physician program |
|---|---|---|---|
| $200,000 | $2,000 | $1,000 | Your documented income-driven payment |
| $300,000 | $3,000 | $1,500 | |
| $400,000 | $4,000 | $2,000 |
That substitution is usually worth more to a Pennsylvania file than the 100% financing, because Pennsylvania prices are modest and the debt is not. How it works.
Why there is no payment calculator here
Because a payment figure requires a rate, and we do not publish rates. A calculator that invents one produces a number you would then plan around, which is worse than no number.
What we will do is run your actual scenario, including the transfer tax, the student-debt treatment and the pre-start timing, and show you the real figures. That takes one conversation.
One honest note on equity
At 100% financing you start with $0 of equity. In Pennsylvania that is a milder concern than in a falling market: 33 of 34 metros rose in the year to 31 August 2026, Philadelphia by +2.5%. But Pittsburgh grew just +0.2%, so in that market equity will come from your payments rather than from appreciation.
How long you expect to stay matters more than the loan structure. The market data.
Run your numbers
Bring your target price, your city, your student loan servicer documentation and your contract if you have one. Call Mike at (480) 296-6513 or email mcerto@cfmtg.com.
Frequently asked questions
How do I calculate Philadelphia transfer tax?
Multiply the sale price, plus any assumed debt, by .04578. That is the City's own published formula, reflecting 3.578% city plus 1% Commonwealth. On a $500,000 purchase the total is $22,890, or about $11,445 at the customary even split between buyer and seller. Verified against the City of Philadelphia 2026-10-06.How much cash do I need for a Pennsylvania physician loan?
The down payment can be zero with 100% financing, but realty transfer tax, recording fees, prepaid items and reserves are not financed. The transfer tax is the largest of these: 4.578% of the price in Philadelphia, or the Commonwealth's 1% plus a local rate elsewhere in Pennsylvania.Why don't you publish physician loan rates?
Because a published rate goes stale immediately and quoting rates is regulated. We show current pricing on your own file instead, alongside the transfer tax, the student-debt treatment and the pre-start timing, so the comparison is against real numbers rather than an illustration.Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content, not a loan commitment and not legal, tax, or licensure advice. Physician-loan program terms, eligible degrees, and overlays are set by the lender and change. Pennsylvania Primary Care Loan Repayment Program award amounts, eligibility and application cycles are set by the Pennsylvania Department of Health and change; figures here carry the date we verified them against the Department's published RFA and Fact Sheet. Realty transfer tax rates are set by the Commonwealth and by local jurisdictions and change. All loans are subject to borrower and property qualification, including credit and income review.