Philadelphia: Nothing Down Still Needs Cash at the Table

Program and regulatory figures verified October 10, 2026. Details change; confirm your scenario with us.

By Mike Certo, Cornerstone First Mortgage · NMLS #260555 · Updated October 10, 2026

The biggest VA market in Pennsylvania, and the one where a zero-down loan most needs a cash plan behind it.

The market

$389,523, up 2.5% through August 2026. The most expensive metro in Pennsylvania, just ahead of Lancaster at $387,889.

★ At about 47% of the $832,750 conforming baseline, loan size is still not the constraint, and with full entitlement there is no limit at all. The entitlement question.

★★ The 4.578% that the loan does not pay

Philadelphia's total realty transfer tax is 4.578%: the city's 3.578% plus the Commonwealth's 1%.

On the metro's typical value that is about $17,834 on the transaction. Custom in Philadelphia is an even split between buyer and seller, which is roughly $8,917 each.

★★ But custom is not law. The Pennsylvania Department of Revenue's position is that "both grantor and grantee are held jointly and severally liable", which means the Commonwealth can look to either party for the whole amount. In a competitive offer, agreeing to take more of it is a real concession with a real number attached.

★★ This is the single most important thing for a Philadelphia VA buyer to plan for, because the VA loan's great advantage, nothing down, does nothing about it. The full arithmetic.

★★ And the recurring cost the Commonwealth may remove

Philadelphia bills real estate tax, and the Disabled Veterans' Real Estate Tax Exemption applies in Philadelphia County on the same statewide criteria: 100% permanent service-connected or TDIU, wartime service, residency, principal-dwelling occupancy, qualifying ownership, and financial need against the $114,637 presumption.

★★ Note the shape of the Philadelphia case specifically: the transfer tax is a large one-off the exemption does not touch, and the property tax is a recurring cost it removes entirely. A qualifying veteran should plan for the first and apply for the second. The criteria.

★ The Navy Yard, and what we will not claim about it

The Philadelphia Navy Yard hosts defence activity including the Naval Surface Warfare Center's Philadelphia Division.

★ We publish no employment or personnel figure for it. The Navy's own site is unreadable to the research tools we use, and we did not read a headcount at a primary source. Secondary coverage gives numbers; we are not repeating them. Why we work that way.

★ Buying here on a VA loan

Budget the transfer tax in cash from the start, and negotiate the split deliberately rather than by default.
The VA appraisal governs value, and it carries its own minimum property requirements, relevant in a city with a lot of older housing stock.
If you qualify, start the county exemption application early through the Philadelphia Director of Veterans Affairs.

★ We publish no rate or payment figures. Mike Certo, NMLS #260555. (480) 296-6513 · mcerto@cfmtg.com.

Frequently asked questions

What is the transfer tax on a Philadelphia home?

4.578 percent in total, being Philadelphia's 3.578 percent city realty transfer tax plus the Commonwealth's 1 percent. On the metro's typical home value of $389,523 that is about $17,834, or roughly $8,917 each at the customary even split.

Does a VA loan cover Philadelphia transfer tax?

No. A VA loan can remove the down payment but it does not pay the realty transfer tax, so a Philadelphia purchase generally needs cash at the table even with nothing down.

Who is liable for Pennsylvania realty transfer tax?

The Pennsylvania Department of Revenue's position is that both grantor and grantee are held jointly and severally liable, so an even split is custom rather than law and the Commonwealth can look to either party.

What is the typical home value in Philadelphia?

$389,523 for the month ending August 31, 2026, up 2.5 percent year over year, making it Pennsylvania's most expensive metro, narrowly ahead of Lancaster at $387,889.

Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content about VA home loan financing, not a loan commitment and not legal, tax or financial advice. Cornerstone First Mortgage is a private lender and is not affiliated with, endorsed by or acting on behalf of the U.S. Department of Veterans Affairs or any government agency. VA entitlement, funding-fee exemption and disability ratings are determined by the U.S. Department of Veterans Affairs. The Pennsylvania Disabled Veterans' Real Estate Tax Exemption is administered by the Pennsylvania State Veterans' Commission through each county Director of Veterans Affairs, not by Cornerstone; its criteria and income thresholds are set by the Commonwealth and change. Figures here carry the date we verified them against primary sources. All loans are subject to borrower, property and program qualification.