Buying Before You Sell in Pennsylvania: The Whole Picture
Program and regulatory figures verified September 25, 2026. Details change; confirm your scenario with us.
Everything a Pennsylvania homeowner needs before making an offer. The market is favourable, the loan limit is irrelevant, and the transfer tax is the number to count.
One: count the transfers
Pennsylvania realty transfer tax is imposed at 1 percent on the value of real estate transferred by deed, instrument, long-term lease or other writing, and is collected, often along with an additional local realty transfer tax, by county Recorders of Deeds.
The tax follows the deed. A buy-before-you-sell records two, so it crosses the tax twice. Keeping the departing home as a rental records one. See the transfer tax page.
Two: ask the county for your local rate
The Department publishes the state 1 percent and says locals may share their realty transfer tax among school districts and municipalities, but does not list local rates. They vary, and some are well above 1 percent.
We do not repeat figures we have not verified, so this site carries none. Your closing agent or the county Recorder of Deeds will give you the exact rate for your parcel.
Three: ignore the loan limit
66 of Pennsylvania's 67 counties sit at the $832,750 national baseline, including every major market. Pike County alone is $1,209,750. Philadelphia's typical value of $389,524 leaves roughly $443,226 of room.
That keeps Pennsylvania files on agency guidelines by default, where the departing-residence rules are published. See the loan limits page.
Four: pick the structure
Carry both and recast, borrow against the departing home's equity, or keep it and rent it. The structures page compares them, including the transfer count for each.
The rental-income rules changed in September 2026
Fannie Mae Selling Guide B3-3.8-05, dated 09/02/2026 under Announcement SEL-2026-08:
- A primary residence being vacated and converted to an investment property when the borrower buys a new primary residence is eligible.
- The lender must document a current housing payment to use any departing-residence rental income.
- Documentation is a complete appraisal with market rents, a Form 1007 rent schedule, or market analysis tools with at least three comparable rentals from the same market area where possible.
- Lease agreements are not permitted for any departing residence.
- Adjusted net rental income is gross rent times 75% less that property's PITIA. Positive offsets that PITIA only; negative is added to the debt-to-income ratio.
- Six months of reserves for the vacated property's PITIA under 12 months of property management experience.
Mechanics on the Form 1007 page, Pennsylvania specifics on the rental conversion page.
The market is working in your favour
Every Pennsylvania metro rose year over year as of August 2026. Lewisburg led at 5.6%, Lebanon 5.2%, Selinsgrove 5.1%, Bloomsburg 4.7%, Lancaster 4.5%. Philadelphia rose 2.5%, and the slowest, East Stroudsburg, still rose 1.7%.
Since bridge structures tier reserve requirements against expected marketing time, and rising values shorten it, Pennsylvania currently sits at the friendlier end of the reserve conversation. See the move-up market page, then Philadelphia, Pittsburgh and the west, the Lehigh Valley or central Pennsylvania.
Two situations with different answers
Under contract but not closed and listed but not sold have their own pages.
Frequently asked questions
What should a Pennsylvania homeowner check first before buying the next house?
How many taxable transfers the plan produces. Realty transfer tax attaches to each transfer of real estate at 1 percent at state level plus any local rate, and a buy-before-you-sell records two deeds rather than one.
What are the 2026 conforming loan limits in Pennsylvania?
$832,750 on one unit in 66 of the 67 counties, including Philadelphia, Allegheny, Bucks, Chester, Delaware, Montgomery and Lancaster. Pike County alone is $1,209,750.
Were any Pennsylvania markets declining in 2026?
No. Every metro we track rose year over year as of August 2026, from East Stroudsburg at 1.7% to Lewisburg at 5.6%, with Philadelphia up 2.5%.
Did the rules for using rental income from a departing residence change?
Yes. Fannie Mae Selling Guide B3-3.8-05 is dated 09/02/2026 under Announcement SEL-2026-08. Lease agreements are no longer permitted for any departing residence, qualifying income is gross rent times 75% less that property's PITIA as an offset only, and six months of reserves apply under 12 months of property management experience.
Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content about financing, not a loan commitment and not legal, tax, or real estate advice. Pennsylvania realty transfer tax is collected by county Recorders of Deeds and local rates vary by municipality and school district; your closing agent, your CPA or a Pennsylvania attorney, and your real estate agent each handle their own part. Loans are subject to borrower and property qualification.