The Pennsylvania Physician Loan Guide
Program and regulatory figures verified October 6, 2026. Details change; confirm your scenario with us.
Everything on this site in one place, in the order a Pennsylvania physician actually needs it.
What order should I do this in?
Four steps, and the first one is the one people skip.
1. Work out your cash at closing. Multiply your target price by 4.578% if you are buying in Philadelphia. Elsewhere, ask your closing agent or county Recorder of Deeds for your local rate and add it to the Commonwealth's 1%. That number is not financed. Detail.
2. Protect your loan repayment eligibility. Before you touch your student loans, read the refinance trap. It is irreversible and worth up to $80,000.
3. Check your employment contract. A recruitment bonus that ties you to a site disqualifies you from the state program; PSLF does not. And the contract's contingencies decide whether you can close early. Bonus and PSLF · 150 days.
4. Then pick the loan. Physician loan or conventional.
The transfer tax, in one table
| Where | Rate | Source |
|---|---|---|
| Commonwealth of Pennsylvania | 1% | PA Department of Revenue |
| Philadelphia (total) | 4.578% (3.578% + 1%) | City of Philadelphia |
| Everywhere else | 1% + a local rate | ★ Local rate not published by the Department |
Two things the Commonwealth says that matter: the tax reaches value including contracted-for improvements, and "both grantor and grantee are held jointly and severally liable." Philadelphia adds that the even split is custom, not law, and that the City may collect the whole amount from either party.
On Philadelphia's typical $389,524 home, 4.578% is $17,834 total, about $8,917 at the customary split.
The loan repayment program, honestly
| Detail | |
|---|---|
| Award | up to $80,000 full-time / $40,000 half-time (physicians, dentists, psychologists); $48,000 / $24,000 others |
| Commitment | Two years; anticipated term 1 Jul 2026 to 30 Jun 2028 |
| Specialties | Six only: family medicine, general internal medicine, general pediatrics, geriatrics, psychiatry, obstetrics/gynecology |
| Setting | ★ LRP-approved outpatient primary care site |
| Geography | HPSA or site serving ≥30% low-income patients |
| You must be | US citizen or national, US-accredited graduate, PA-licensed, already practising at the site |
| ★ Status | ★ Closed. RFA 67-206 shut at 11:59 p.m. EST 4 May 2026 |
| Next cycle | ★ Not published. Email RA-DHLoanRepayment@pa.gov for notice |
And a limitation we will state rather than hide: Pennsylvania publishes no report of actual average awards against that $80,000 maximum, so we cannot tell you what a typical award looks like. Treat it as a ceiling. The program · Eligibility.
What the physician loan does
- Up to 100% financing with no PMI; five-percent-down options; to $2M.
- Student debt on your documented income-driven payment, not 1% of balance (Fannie Mae B3-6-05) or 0.5% (HUD 4000.1).
- Closing up to 150 days before your start date on a signed contract, against the 90 agency rules allow.
- Eligible degrees: MD, DO, DDS, DMD, DPM, OD, PharmD, DVM, CRNA, plus residents and fellows.
- Asset depletion as supplemental income only, at a 3% rate of return, assets in a US account.
Lender portfolio program, not agency financing. Terms set by the lender and subject to change. Who qualifies.
The market and the limits
33 of 34 Pennsylvania metros rose in the year to 31 August 2026; only Bradford fell, at −2.8%. Philadelphia $389,524 (+2.5%), Pittsburgh $232,122 (+0.2%), against a US benchmark of $368,697 (+1.2%). A central-PA belt ran +4.5% to +8.2%.
Loan limits: $832,750 in 66 of 67 counties; Pike County alone at $1,209,750. Philadelphia's typical value leaves about $443,226 of headroom. Market · Limits.
By city
Philadelphia — highest prices, and the 4.578% tax.
Pittsburgh — cheapest major market, flat growth, local tax rate unpublished.
Harrisburg, Hershey, Lancaster, York — fastest growth, no city tax, best value.
How current is all this?
Every figure carries the date we verified it, which is 2026-10-06 throughout. The loan repayment figures come from the Department of Health's own Fact Sheet and from RFA 67-206 read directly. The transfer tax rates come from the Department of Revenue and the City of Philadelphia. Loan limits come from the FHFA's 2026 county file, all 67 counties checked. Market data is Zillow Research's metro series to 31 August 2026.
Where we could not verify something, this site says so rather than filling the gap: no Pittsburgh local rate, no next LRP cycle date, no average award, no resident counts. Ask us to confirm anything before you rely on it. Contact.
Frequently asked questions
What should a physician know before buying in Pennsylvania?
Four things, in order. Realty transfer tax is cash the loan does not finance, reaching 4.578% in Philadelphia. Refinancing student loans the wrong way permanently forfeits up to $80,000 of state loan repayment. A recruitment bonus that ties you to a site disqualifies you from that program, though PSLF does not. And the market is benign, with 33 of 34 metros rising and loan limits that rarely bind.What does a Pennsylvania physician loan offer?
Up to 100% financing with no private mortgage insurance, five-percent-down options, loan amounts to $2M, student debt counted on your documented income-driven payment rather than 1% of the balance, and closing up to 150 days before your start date on a signed employment contract. Eligible degrees include MD, DO, DDS, DMD, DPM, OD, PharmD, DVM and CRNA, plus residents and fellows.How much cash does a physician need at closing in Pennsylvania?
Not a down payment, if using 100% financing, but realty transfer tax is due at recording and is not financed. In Philadelphia that is 4.578% of the price, which on the city's typical $389,524 home is $17,834 in total or about $8,917 at the customary even split. Elsewhere the Commonwealth's 1% applies plus a local rate that varies by jurisdiction.Is Pennsylvania a good state for a physician to buy in?
On the numbers it compares well. Thirty-three of thirty-four metros rose in the year to 31 August 2026, values sit near or below the national benchmark with Pittsburgh around 37% below it, and the $832,750 conforming limit leaves roughly $443,226 of headroom above Philadelphia's typical value. The main friction is cash at closing rather than price or market risk.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.