Average Closing Costs in Philadelphia, Pennsylvania (2026 Guide)
Homebuyers in Philadelphia typically pay $4,500 to $11,250 in closing costs on a $225,000 home — approximately 2% of the purchase price.
2026 Closing Cost Fee Breakdown
Based on $225,000 median home price in Philadelphia
| Fee | Typical Range | Negotiable? |
|---|---|---|
| Origination Fee | $500 – $2,500 | Yes |
| Underwriting Fee | $400 – $1,200 | Yes |
| Processing Fee | $300 – $900 | Yes |
| Appraisal Fee | $400 – $700 | No |
| Credit Report | $25 – $75 | No |
| Flood Certification | $10 – $50 | No |
| Lender's Title Insurance | $500 – $2,000 | No |
| Settlement Fee | $300 – $800 | Sometimes |
| Recording Fees | $50 – $250 | No |
| Prepaid Interest | Varies by rate | No |
| Property Tax Escrow | 2–3 months | No |
| Homeowners Insurance | 1–2 months | No |
| Estimated Total | $4,500 – $11,250 |
Ranges are typical for a conventional purchase loan · Prepaid and escrow amounts vary by closing date and lender · Source: FairRate market data 2026
Pennsylvania Real Estate Laws That Affect Your Closing Costs
Pennsylvania has a Realty Transfer Tax of 2% of the sale price split between buyer and seller by convention. Philadelphia adds its own 3.278% transfer tax making the combined rate 4.278% — among the highest in the nation.
Transfer Tax in Pennsylvania
Pennsylvania state Realty Transfer Tax is 2% of sale price. Philadelphia adds 3.278% for a combined rate of 4.278%.
First-Time Buyer Programs in Pennsylvania
PHFA offers the Keystone Home Loan and HFA Preferred programs with competitive rates and down payment assistance.
Income and purchase price limits apply. Contact your lender or your state housing finance agency for current program terms in Philadelphia.
Which Fees Are Negotiable?
The fees in Section A of your Loan Estimate are set by the lender and are negotiable: origination, underwriting, and processing fees. Section B fees — appraisal, title, recording — are set by third parties and cannot be negotiated with the lender.
What to Do When You Get Your Loan Estimate
Your lender must provide a Loan Estimate within 3 business days of application. Check Section A fees against the ranges above, ask your lender to justify any fee above the typical range, and compare total closing costs across at least two lenders.
Get Your Fees Analyzed