I would advise doing a Letter of Intent (LOI) instead of a Purchase Agreement (PA).

I owner-financed a small property in Ridord, PA that is under an installment contract or contract for deed for 15 years starting Sep 2015.  

I recently started looking at Pennsylvania. 

People are generally referring to this type of entry as contra-expense or atleast that's how I interpreted.In the PA tax return, this line item was highlighted in Red and hence the question

You said it yourself, that you put in a PA NOT to actually buy the place but fishing for information to support your hypostasis. 

To be eligible for 80% cash out, the property must be located in one of the following states:       AL, AZ, CA, CO, GA, MI, MN, MO, NC, PA, TN, TX, UT, VA, WAWith respect to seasoning, as long we can verify that the property was improved by the borrower after they purchased it, there is NO seasoning requirement for the 80% program. 

Typically, most Section 8 properties in PA are mid-grade rentals and they do go very quickly.

Does section 8 require a specific lease form for tenants in PA, specifically Dauphin County?

But lots of ppl in Philly rent rooms in their house without this official designation, so not too sure how it works.As for leases, try googling "PA Standard Residential Lease".

I am a realtor based in York, PA.