Rental property financing built on rental income.
A Pennsylvania DSCR loan is a rental property mortgage sized on the rent, with no personal income documents. HUD puts the 2 bedroom Fair Market Rent for the Philadelphia metro at $1,860 a month (HUD User). Pillar Mortgage Group (NMLS 2700076) arranges DSCR loans in Pennsylvania up to $5 million.
Facts checked November 1, 2026. Not a commitment to lend.
DSCR loans by state
We lend DSCR in 35 states. Pick yours.
Every value links to its primary source. Details for each follow further down the page.
| Pennsylvania fact | Value | Source |
|---|---|---|
| Security instrument | Mortgage | pacodeandbulletin.gov |
| Foreclosure | Judicial | pacodeandbulletin.gov |
| Transfer and recording taxes | State realty transfer tax of 1 percent, often collected along with an additional local realty transfer tax (local rates vary by municipality and school district) | pa.gov |
| Security deposit | Max 2 months' rent in the first lease year and 1 month's rent from the second year on | 68 P.S. §§ 250.511a, 250.512 (Landlord and Tenant Act of 1951, §§ 511.1, 512) |
| Notice for unpaid rent | 10 day notice to quit for nonpayment | 68 P.S. § 250.501(b) |
| LLC formation fee | $125 | 15 Pa.C.S. § 153 |
| Median listing price | $309,000 in September 2026 ($320,000 in September 2025) | Realtor.com via FRED |
| HUD 2 bedroom Fair Market Rent | $1,860, The Philadelphia metro | HUD User |
Full walk through: how DSCR is calculated.
Nine rules that open more Pennsylvania deals.
Loan amount
Up to $5M
Credit
660 and up
Down
20 to 25%
Vesting
LLC ok
Guidelines summarized; subject to program terms, property and borrower eligibility. Not a commitment to lend. Compare with typical DSCR programs.
Before you run a Pennsylvania deal, anchor the rent to public benchmarks instead of a listing agent's guess.
Median listing price
$309,000
September 2026, down 3.4% from $320,000 in September 2025
Quick math (computed from the figures above): Using the Pennsylvania median listing price, $309,000, a 25% down payment is $77,250 and the loan is $231,750. A year of rent at the Fair Market Rent for the Philadelphia metro ($1,860) is $22,320, or 7.2% of that price. A year of rent at the Fair Market Rent for the Pittsburgh metro ($1,389) is $16,668, or 5.4% of that price.
Fair Market Rent is a HUD benchmark, not an appraisal.
The rent field starts at the HUD 2 bedroom Fair Market Rent for the Philadelphia metro. HUD also lists the Philadelphia metro at $1,860 and the Pittsburgh metro at $1,389. Swap in your lease or appraisal rent, then add your quoted rate. For a price reference, the median Pennsylvania listing was $309,000 in September 2026.
See how a rental's income stacks up against its full monthly payment. Your numbers stay in your browser.
Enter rent, price and your quoted rate to see your DSCR.
Loan amount (L) = Price × (100 minus Down %) ÷ 100
P&I (30 year fixed) = L × r × (1 + r)^360 ÷ ((1 + r)^360 minus 1), where r = annual rate ÷ 100 ÷ 12
P&I (40 year interest only) = L × r
PITIA = P&I + Tax ÷ 12 + Insurance ÷ 12 + HOA
DSCR = Monthly rent ÷ PITIA
Rent needed for a target DSCR = Target × PITIA
Estimates only. Not a loan offer. Rates and terms vary by lender, property and borrower. Company NMLS #2700076. Example values are illustrations, not a quote.
Hypothetical PITIA of $1,775 (P&I $1,400, taxes $250, insurance $125), real Pennsylvania rents. Not a quote or a rate.
1.05DSCR
$1,860 / $1,775 = 1.05: covers the full payment.
0.78DSCR
$1,389 / $1,775 = 0.78: fits programs down to 0.50.
Share the deal and we will run the ratio, compare lenders and lay out your options in plain numbers.
Investors from any state can buy in Pennsylvania.
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The largest Pennsylvania rental markets, and what each city requires of short term rental hosts.
These Pennsylvania statutes set the ground rules for every lease you sign on a financed rental.
| Topic | The rule | Citation |
|---|---|---|
| Security deposit | Max 2 months' rent in the first lease year and 1 month's rent from the second year on. Itemized list of damages within 30 days of lease termination or surrender and acceptance, whichever comes first. | 68 P.S. §§ 250.511a, 250.512 (Landlord and Tenant Act of 1951, §§ 511.1, 512) |
| Pay or quit | 10 day notice to quit for nonpayment | 68 P.S. § 250.501(b) |
| Month to month notice | 15 days for a lease of one year or less or for an indeterminate time | 68 P.S. § 250.501(b) |
Not legal advice.
Who closes your loan, which security instrument you sign and what the state charges to record it.
What it costs to form and keep an LLC in good standing with the Pennsylvania Secretary of State.
The Pennsylvania rules that touch your lease, your closing and your entity.
Documents: contract, lease or rent schedule, bank statements, LLC papers, insurance quote. No tax returns. Details.
Pennsylvania is highlighted. We also lend DSCR in Ohio, West Virginia, Maryland and Delaware next door, and in 30 more states. Tap a gold state to open its guide.
Straight answers for investors buying or refinancing rentals in Pennsylvania.
PMG guidelines summarized; subject to program terms, property and borrower eligibility. Not a commitment to lend.
Book a free callInvesting across state lines? We lend DSCR in these neighbors of Pennsylvania too.
Primary sources, each with the date checked. PMG program facts come from Pillar Mortgage Group.
Send the Pennsylvania property and rent. We run the ratio and lay out terms before you offer.
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Pillar Mortgage Group, LLC is an Equal Housing Lender, doing business in accordance with the Fair Housing Act and Equal Credit Opportunity Act. Not a commitment to lend.
Company NMLS# 2700076 | Arizona License MB-2009671 | View NMLS Consumer Access