Maryland · State guide
How to buy a house in Maryland
A higher-cost market near DC and Baltimore, with a strong state program — including up to $25,000 to pay off student debt — but some of the highest closing costs in the country. Here is the playbook for buying in the Old Line State.
Last updated June 2026
Why Maryland is different
Buying a house in Maryland, the short version
The federal process is the same everywhere — read the complete guide to buying a house for the eight universal steps — but Maryland has its own programs, taxes, and closing rules worth knowing before you start.
The picture: Maryland is relatively expensive (a statewide median around $448,000; Montgomery County and the DC suburbs are priciest, while Baltimore City is one of the most affordable entry points). The state’s flagship help is the Maryland Mortgage Program (MMP), which adds down payment assistance and a unique student-debt payoff of up to $25,000.
Two things to plan for. Maryland has some of the highest closing costs in the country (layered transfer and recordation taxes), though first-time buyers get a real break. And loan limits and property taxes vary enormously by county — the DC-metro counties go all the way up to the high-cost loan ceiling. Use the 50-state hub to compare other states.
The market
What homes cost in Maryland
One of the more expensive states, with a huge gap between the DC suburbs and Baltimore City.
The statewide median sale price was about $448,000 in spring 2026, up roughly 2–3% year over year (Redfin), with tight inventory keeping homes selling near asking. Prices vary dramatically by county:
Median prices by county (2026)
Montgomery County is the priciest large county, ~$650,000 · Howard County ~$597,000–$602,000 · Anne Arundel (Annapolis) ~$502,000–$513,000 · Frederick ~$501,000 · Prince George’s ~$428,000 · Baltimore County ~$363,000 · Ocean City area ~$450,000 · Baltimore City is the most affordable, ~$250,000.
Down payment & rate help
The Maryland Mortgage Program
You don’t apply directly — you work through one of 120+ approved MMP lenders. A 640 credit score and a homebuyer course are the main requirements.
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1st Time Advantage & Flex loans
The core: a 30-year fixed mortgage (FHA, VA, USDA, or conventional). 1st Time Advantage is for first-time buyers; the Flex line allows repeat buyers. Both can be paired with down payment assistance or taken at the lowest rate with no DPA.
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Down payment assistance
Choose a flat $6,000 or 3%–5% of the loan as a 0%-interest deferred second (repaid only when you sell, refinance, or pay off the loan). Lower-income buyers (≤50% AMI) can get HomeStart’s 6% deferred assistance.
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Maryland SmartBuy 3.0
Maryland’s signature program: if you have student debt, financing can pay off up to $25,000 (raised in 2026) as a loan forgiven over 5 years. The full balance for one borrower must clear at closing, and it needs a 720 credit score.
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Partner Match & federal loans
Partner Match adds up to $2,500 by matching employer or community contributions. And the usual federal options apply: FHA (3.5% down), VA (0% down), and USDA (0% down) in eligible rural areas — with MMP layered on top.
The MMP rules in brief
You’ll generally need a 640 credit score (720 for SmartBuy), a DTI up to about 45%–50%, completion of a homebuyer education class, and household income and purchase price under county limits — which range hugely, from about $131,700 income / $544,000 price in rural counties up to $196,680 / $1,255,921 in the DC-metro counties. Down payment assistance is a deferred loan you repay later, not a grant, while the SmartBuy student-debt portion is forgiven over five years. Note: the Maryland HomeCredit (MCC) tax-credit program is currently closed to new applicants.
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From MMP down payment help to the SmartBuy student-debt program and your county’s loan limits, a local pro can walk you through it — and answer the questions this page can’t. Free, with no obligation.
Property taxes
Property taxes in Maryland: moderate, but county-driven
Maryland property taxes are moderate — an effective rate around 0.95%–1.05%, with a typical bill near $4,000. Maryland is unusual in that the State Department of Assessments and Taxation (SDAT), not your county, assesses every home at 100% of market value on a three-year cycle, phasing in increases over three years. The state rate is just $0.112 per $100, but counties set their own rates on top — and they vary widely, from low rural rates up to Baltimore City’s $2.248 per $100, the highest in the state. Howard County has the highest dollar bills (~$6,800).
File the Homestead Tax Credit — it’s a one-time application
Maryland’s Homestead Tax Credit caps how much your taxable assessment can rise each year on your primary home. The state cap is 10%, but each county sets its own — Anne Arundel is just 2%, Prince George’s 3%, Baltimore City 4%, and Talbot 0%. It’s a one-time application to SDAT (no income limit), and it then stays with your home. Lower-income owners (combined income ≤$60,000) can also claim the income-based Homeowners’ Property Tax Credit, which caps tax as a share of income (apply by October 1).
Closing & costs
Closing on a home in Maryland
Maryland is a title/settlement state — a title company or settlement attorney conducts the closing (an attorney isn’t required, though the deed must be attorney-prepared), and title insurance is standard. The thing to budget for is high closing costs: Maryland layers a 0.5% state transfer tax, a county transfer tax (0% to 1.5%), and a recordation tax ($2.50–$7.00 per $500) — together often 1.5%–3% of the price. The big break: first-time Maryland buyers pay just 0.25% state transfer tax, and the seller pays it, saving you thousands. On financing, five DC-metro counties (Montgomery, Prince George’s, Frederick, Calvert, Charles) reach the high-cost limit of $1,249,125; the Baltimore metro is at the $832,750 baseline (FHA $747,500); rural counties use the FHA floor of $541,287.
The disclosure — or a “disclaimer”
Maryland sellers use a Residential Property Disclosure and Disclaimer Statement and may choose to either disclose known defects or disclaim and sell “as is.” Even when selling “as is,” they must still reveal known latent defects — hidden problems that affect health or safety. Because “as is” is common here, your own home inspection is essential. The federal lead-paint rule applies to pre-1978 homes. Take title in your individual name to preserve the first-time-buyer transfer-tax break.
Insurance & risks
Insuring a Maryland home
Home insurance in Maryland is moderate — averaging roughly $1,700–$1,900 a year, below the national average. (Maryland is one of three states that bans using your credit score to set home-insurance rates.) The main risks are severe thunderstorms and wind/hail, the remnants of hurricanes and tropical storms, winter and ice storms, and — importantly — flooding, both flash floods (Ellicott City) and coastal/Chesapeake Bay tidal flooding along the Eastern Shore and Ocean City.
Near the water? Flood and wind coverage matter most
Standard policies never cover flood, so if you’re near the Chesapeake, a tidal river, or the coast, you’ll need a separate NFIP (or private) flood policy — check the FEMA flood-zone designation before you buy. Coastal and Eastern Shore policies may also carry a separate hurricane/windstorm deductible (a percentage of your home’s value, applied for wind losses instead of your flat deductible). Premiums run noticeably higher near the water. If you can’t find standard coverage, the Maryland Joint Insurance Association (FAIR Plan) is the last-resort option.
Wherever you buy
The steps that work the same in Maryland
Maryland sets the local rules, but these parts of buying are the same everywhere.
Quick answers
Buying a house in Maryland: common questions
How much money do you need to buy a house in Maryland?
With a conventional loan you need 3% down, FHA 3.5%, and VA or USDA can be 0%. On a typical ~$448,000 home that’s roughly $13,000–$16,000 down plus closing costs (which are high here). MMP assistance can cover much of the down payment. See how much you really need →
Does Maryland have down payment assistance?
Yes. The Maryland Mortgage Program offers $6,000 or 3%–6% of the loan as a 0% deferred second, plus the SmartBuy program that pays off up to $25,000 in student debt. See assistance programs →
What is Maryland SmartBuy?
SmartBuy 3.0 helps first-time buyers with student debt: the financing pays off up to $25,000 of student loans (forgiven over 5 years). The full balance for at least one borrower must be paid at closing, and it requires a 720 credit score.
Why are closing costs so high in Maryland?
Maryland layers a 0.5% state transfer tax, a county transfer tax (up to 1.5%), and a recordation tax — often 1.5%–3% of the price combined. First-time Maryland buyers pay just 0.25% state transfer tax, and the seller covers it.
What credit score do you need in Maryland?
The Maryland Mortgage Program generally requires a 640 (720 for SmartBuy). For loans broadly, FHA can go to 580 and USDA/VA typically want 620. Check the score by loan type →
Are property taxes high in Maryland?
They’re moderate (an effective rate around 0.95%–1.05%), but rates vary a lot by county — from low rural rates up to Baltimore City’s $2.248 per $100. File the one-time Homestead Tax Credit to cap your assessment increases.
Do I need an attorney to buy a house in Maryland?
No. Maryland closings are handled by a title company or settlement agent, though the deed itself must be attorney-prepared. Title insurance is standard.
Do home sellers have to disclose problems in Maryland?
Maryland sellers use a disclosure-or-disclaimer form and may sell “as is,” but must still reveal known latent (hidden safety) defects. Because “as is” is common, always get your own inspection. How inspections fit the process →
What’s the conforming loan limit in Maryland?
$832,750 in most counties, but the five DC-metro counties (Montgomery, Prince George’s, Frederick, Calvert, Charles) reach the high-cost ceiling of $1,249,125. FHA limits range from $541,287 to $1,249,125 by county.
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