Hard Money Calculator

Pennsylvania Hard Money Loan Calculator

Enter your deal to see how much you can borrow, your rate and points options, and the cash you'll need to close. Choose a project type for fix and flip, bridge, ground-up construction, or 30-year rental (DSCR) loans. Pricing based on current industry rates.

The project
You

Flips, ground-up builds, or rentals you bought, renovated, and sold or held.

Your middle score of the three bureaus. 650 minimum.

The numbers
$
$

Leave blank if it matches the purchase price.

$
$

Expected value once the work is finished, based on recent comparable sales.

Hard money loans for Pennsylvania real estate investors

This calculator is set to Pennsylvania. Pick a project type (fix and flip, bridge, ground-up construction or a 30-year rental loan), enter the property ZIP code and your numbers, and it prices the loan under current investor lending rules. You get the loan amount, rate and points options, monthly payment and cash to close. It covers single-family homes, rowhomes, twins, 2–4 unit buildings, condos and PUDs held as investments, from Philadelphia and its suburban counties to Allegheny County, the Lehigh Valley and Erie.

Pittsburgh flips: check the ARV against the ZIP code

Pittsburgh has many neighborhoods where a small house sells cheaply and a full renovation can push it well past the local comps. Lenders watch for that. On a single-family flip, the calculator compares your after-repair value (ARV) with the typical home value in the ZIP code, and if the ARV is more than twice that figure it cuts leverage by 10 points.

Take a 1–4 flip investor with a 720 score buying a house for $95,000, with a $65,000 rehab and a $215,000 ARV. In 15216 (Dormont and Beechview), where a typical home is worth about $205,000, the ratio is close to 1. The calculator lends $148,000: $85,500 at closing (90% of the price) and $62,500 of the rehab, so you put $9,500 down and cover $2,500 of the work.

Move the same deal to 15210 (Carrick and Mount Oliver), where a typical home is worth about $104,000, and the ARV is 2.07 times the ZIP value. The loan drops to $132,000: $76,000 at closing (80%) and $56,000 of the rehab. Your down payment doubles to $19,000 and you pay $9,000 of the rehab yourself. If the comps only support a $200,000 ARV, the ratio falls under 2 and the loan rises to $145,000. A conservative ARV can get you more money, so price the deal against what the block actually sells for.

Philadelphia rentals need more rent per dollar borrowed

Many Pennsylvania investors buy a rowhome or twin and hold it as a rental with a 30-year DSCR loan. In Philadelphia ZIP codes, current lending rules require a debt service coverage ratio (DSCR) of at least 1.20, where the same loan elsewhere in the state typically needs 1.00. That means the rent has to cover the payment, taxes and insurance with 20% to spare, and the loan shrinks until it does.

Say you buy a $230,000 house that rents for $1,750 a month, with $3,000 in annual taxes and $1,500 in insurance, and you have a 740 credit score. In Pittsburgh's 15216 the rent supports the full 80% loan, $184,000, at a DSCR of about 1.03, and you bring $46,000 down. The same numbers in Mayfair (19149) stop at $155,315, where the DSCR hits 1.20, so you bring $74,685. At $2,000 a month in rent, the Philadelphia loan grows to $178,571. Properties valued under about $175,000 in the city are also flagged for the lender to confirm, so a cheap Kensington rowhome may need a closer look even when the rent works. Run it in the DSCR loan calculator before you make an offer.

Act 6 and prepayment penalties

Pennsylvania's Act 6 bars prepayment penalties on smaller residential mortgages, and current lending rules apply that to 1–2 unit DSCR loans under $329,411. On those loans, the calculator replaces any prepay you choose with no prepay and tells you why. Both rental examples above come back that way.

The rule depends on the loan size and unit count, not the price. A Fishtown (19125) duplex bought for $520,000 that rents for $4,400 a month supports $416,000, above the limit, so it keeps the 5-year step-down. If you choose no prepay on that loan instead, the rate goes up and the same rent supports only $399,577. At a $400,000 price the duplex loan is $320,000, under the limit, so it can't have a prepay. A triplex with the same numbers can, and its rate options come in lower.

What's different about investing in Pennsylvania

Transfer tax is the big closing cost. The state charges 1% of the price and most municipalities and school districts add at least another 1%. Philadelphia and Pittsburgh both charge more, with combined rates above 4%. Buyer and seller usually split it, but on a flip you pay it twice, once when you buy and again when you sell. Pennsylvania has no separate mortgage tax.

Use and occupancy certificates. Many boroughs and townships, especially in the Philadelphia suburbs, require a resale inspection before a sale. Violations have to be fixed or carried over to the buyer under a temporary certificate. Get the report before you finalize the rehab budget.

Foreclosures go through the courts. Pennsylvania foreclosures are judicial and end at a county sheriff sale, and Philadelphia runs its sales online. Sheriff sale and auction buys close on a tight schedule, so line up a bridge loan before you bid.

Philadelphia rental rules. Every rental in the city needs a rental license, and units built before 1978 need a lead-safe or lead-free certification before a new tenant moves in. Rentals also miss the Homestead Exemption owner-occupants get, so use the full assessed value when you estimate taxes and DSCR.

Allegheny County assessments. The county still assesses on 2012 base-year values, and assessment appeals after a sale are common. Budget taxes on your purchase price, not the seller's old bill.

Which Pennsylvania loan fits your project

  • Fix and flip: purchase plus rehab paid in draws, sized against the after-repair value and checked against the ZIP code.
  • Bridge: short-term purchase or refinance with no rehab, for sheriff sale buys and quick closings. See the bridge loan calculator.
  • Ground-up construction: land plus build budget for infill rowhomes in Philadelphia or new houses in the suburban counties. See the construction loan calculator.
  • DSCR rental loan: a 30-year loan qualified on rent instead of personal income, with the Philadelphia DSCR floor and Act 6 limits built in. See the DSCR loan calculator.

What drives your rate in Pennsylvania

Experience, credit score, loan amount, property type and, for flips, how big the rehab is next to the price. On a flip the state doesn't change the rate by itself, but the ZIP code check above changes your leverage. On a rental loan, the prepay you're allowed to take matters most, and in Philadelphia the 1.20 DSCR floor often decides the loan amount before the 80% limit does. Enter the real ZIP and your middle credit score, and run the refinance before you buy so you know the rent will carry the long-term loan.

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Frequently asked questions

Can I get a hard money loan in Pennsylvania?

Yes. Fix and flip, bridge, ground-up construction and DSCR rental loans are available for 1–4 unit investment properties across Pennsylvania, including Philadelphia, Pittsburgh, Allentown, Reading, Harrisburg, Lancaster, Erie and Scranton. Choose your project type and enter the property ZIP code to see pricing.

Why does my Pennsylvania rental loan quote have no prepayment penalty?

Pennsylvania’s Act 6 bars prepayment penalties on smaller residential mortgages. Under current lending rules, a 1–2 unit DSCR loan below $329,411 can’t carry one, so the calculator switches the quote to no prepay. Larger 1–2 unit loans and any 3–4 unit loan can use the normal step-down options.

Are rental loans in Philadelphia different from the rest of the state?

Yes. Philadelphia ZIP codes need a debt service coverage ratio of at least 1.20, where the same loan elsewhere in the state typically needs 1.00, so the same rent supports a smaller loan. Properties worth less than about $175,000 there are also flagged for the lender to confirm. The Mayfair example on this page gets $155,315 against $184,000 for the same house in Pittsburgh.

Why does the ZIP code change my Pittsburgh flip loan?

On a single-family flip, the calculator compares your after-repair value with the typical home value in the ZIP code. If the ARV is more than twice that figure, leverage drops by 10 points. A $215,000 ARV gets $148,000 in 15216 but $132,000 in 15210, where homes typically sell for about $104,000.

What is a use and occupancy certificate in Pennsylvania?

Many Pennsylvania boroughs and townships require a resale inspection and a use and occupancy (U&O) certificate before a house can change hands. Violations have to be repaired, or the buyer takes a temporary certificate and agrees to fix them. Ask for the inspection early and add the repairs to your rehab budget.

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Estimates are for planning only and are not a commitment to lend.