DSCR loans in Pennsylvania — what actually changes?

THE NUMBERS

ILLUSTRATIVE — published program floors, not a quote or a commitment to lend. Subject to underwriting, appraisal and final credit approval.

What does Pennsylvania cost at the closing table?

The Commonwealth imposes realty transfer tax at 1% of the value of the real estate transferred, and municipalities and school districts impose their own local realty transfer tax on top. Across most of the state the local piece is another 1%, split by custom between buyer and seller; Philadelphia and Pittsburgh are meaningfully higher, and the split there gets negotiated more often than assumed. Pennsylvania does not add a separate state tax on the mortgage or the note, so the loan itself is not taxed. Confirm the combined rate and the customary split for your municipality with your title company before you sign.

Why can the property tax bill jump after I buy?

Pennsylvania permits counties to assess on a base year, and many have gone a long time without a countywide reassessment — Allegheny County's values still run off assessments that took effect in 2013. The State Tax Equalization Board certifies a common level ratio for each county each year to translate base-year assessments into current values, and that ratio drives assessment appeals after a sale. Practically: the seller's bill is a weak predictor. The desk underwrites taxes at what the property is likely to be assessed at, not at what the current owner pays, because a DSCR is only as honest as the T in PITIA.

Does judicial foreclosure change my pricing?

Pennsylvania is a judicial-foreclosure state: a lender has to sue, take judgment and sell through the sheriff, which is far slower than a trustee sale. Some lenders price a few basis points into judicial states or trim leverage there. Silt does not — the Pennsylvania grid is the same grid as Texas or Tennessee. What it should tell you is something about the market rather than the loan: slower remedies mean distressed inventory moves slowly, which is part of why Pennsylvania rent-to-price ratios have stayed friendlier than most of the Northeast.

Do I need a Pennsylvania LLC?

No. You can hold a Pennsylvania rental in an out-of-state LLC, but a foreign filing association that does business in the Commonwealth must deliver a foreign registration statement to the Department of State, and title companies routinely ask for evidence of registration and good standing before they insure. Registering during underwriting does not delay pricing — the desk quotes off the property, not the paperwork. Whether your particular holding structure counts as doing business is a question for your attorney, not for a lender.

What about insurance, leases and short-term rentals?

Insurance in Pennsylvania is ordinary: a landlord policy at replacement cost, no coastal wind market to navigate, flood coverage only where the map calls for it. Leases run twelve months as a norm and security-deposit handling is regulated at state level — pattern-level context only; your attorney should read your lease. Short-term rental legality is entirely local, with Philadelphia, Pittsburgh and the Pocono townships each running their own permit regime. If the plan is STR, the desk underwrites long-term market rent unless the ordinance clearly allows the use.

Which Pennsylvania markets do investors bring us?

Pittsburgh and its river boroughs carry the state's strongest rent-to-price posture, which is why blanket files out of Allegheny County are common on this desk. Philadelphia's rowhome stock prices low per door for the East Coast but carries the heaviest transfer tax and the most active rental licensing enforcement. Allentown, Bethlehem and Easton sit between the two, pulled upward by New York and New Jersey capital. Erie and Scranton show high headline yields with correspondingly thinner exit liquidity. Qualitative posture, not a forecast.

Worked example — a Pittsburgh single-family rental

Illustrative only, from published program floors — not a quote, an approval, or a commitment to lend. Note the tax line: underwriting at the seller's base-year bill instead of the likely post-sale figure would have shown a healthier DSCR than the file actually supports.

WHAT WE NEED FROM YOU

• Entity documents — articles or certificate of formation, operating agreement, EIN letter. Every Silt loan closes in an LLC or corporation, never a personal name.
• Leases or a rent roll — current leases where the units are occupied; on a vacant unit the appraiser's rent schedule (Form 1007) carries the income.
• Insurance — a binder naming the borrowing entity, with the lender's mortgagee clause.
• Bank statements — two months, showing reserves and the source of the down payment.
• Contract or payoff — the purchase contract if buying, the payoff statement if refinancing.
• Pennsylvania add-on — the current tax bill, plus the assessment and common level ratio where the county has not reassessed recently, so taxes can be underwritten post-sale.
• Pennsylvania add-on — evidence of foreign registration and good standing if your LLC was formed outside the Commonwealth.

FREQUENT QUESTIONS

Does Silt lend in Pennsylvania?

Yes. Pennsylvania is inside the 42-state footprint, on the same programs, leverage and pricing grid as everywhere else the desk lends.

Who pays the realty transfer tax?

Custom across most of Pennsylvania is a 50/50 split between buyer and seller, but it is negotiable and the local rate varies by municipality — confirm both with your title company.

Is there a tax on the mortgage itself?

Pennsylvania imposes no separate state tax on the note or the mortgage. County recording fees still apply.

Do I need to be a US citizen?

No. Silt lends to US citizens, permanent residents, non-permanent residents and foreign nationals; foreign-national files cap at 70% LTV and price 75 basis points higher.

Will you pull my credit to quote?

No. Quoting is free and takes no credit pull. Credit is pulled only when you want a written term sheet, and it sets the pricing tier.

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