Maryland's mortgage market has its own distinct rules — from closing customs to transfer tax structure to the specific down payment programs available through the state's housing finance agency. This guide covers what's genuinely different about buying in Maryland, not just the generic national mortgage process.
Maryland at a Glance
Est. payment: $2,211/mo
Est. payment: $4,174/mo
Est. payment: $3,177/mo
Estimated payments assume 5% down, 6.82% 30-year fixed rate, plus $150/month insurance. Your actual payment will vary by lender, credit score, and specific property tax rate.
How Maryland Closings Work
Maryland does not strictly require an attorney but strongly recommends one, and the majority of transactions — especially in the DC suburbs — use attorneys given the complexity of local transfer/recordation tax stacking.
Transfer tax: 0.5% state transfer tax plus county transfer taxes ranging from 0.5% to 1.5% plus recordation tax of roughly 0.5-1% — Baltimore City and Montgomery County have among the highest combined rates in the mid-Atlantic.
The Maryland Property Tax Quirk You Should Know
Maryland offers first-time buyers a partial exemption from the state transfer tax (reducing it from 0.5% to 0.25%) — a meaningful savings on higher-priced DC-suburb homes that many buyers don't realize they need to actively claim on the settlement statement.
Maryland's Down Payment Assistance Program
Maryland Mortgage Program (MMP), Maryland CDA down payment assistance
MMP's down payment assistance provides up to $10,000 (increased under the Flex program) as a deferred, 0% interest second mortgage repayable only upon sale, refinance, or payoff of the first mortgage.
USDA Rural Eligibility in Maryland
Western Maryland (Garrett, Allegany counties) and the Eastern Shore have significant USDA-eligible zones; the DC/Baltimore corridor is almost entirely ineligible.
Mortgage Loan Limits in Maryland
| Loan Type | Limit | Down Payment |
|---|---|---|
| Conventional (Fannie/Freddie) | $766,550 | 3–20% |
| FHA (MD) | $1,149,825 | 3.5% |
| VA (eligible veterans) | No limit (full entitlement) | 0% |
| USDA (eligible rural areas) | No set limit | 0% |
Frequently Asked Questions
Maryland does not strictly require an attorney but strongly recommends one, and the majority of transactions — especially in the DC suburbs — use attorneys given the complexity of local transfer/recordation tax stacking.
Maryland's transfer tax structure: 0.5% state transfer tax plus county transfer taxes ranging from 0.5% to 1.5% plus recordation tax of roughly 0.5-1% — Baltimore City and Montgomery County have among the highest combined rates in the mid-Atlantic. This is typically disclosed on your Closing Disclosure and paid at settlement.
MMP's down payment assistance provides up to $10,000 (increased under the Flex program) as a deferred, 0% interest second mortgage repayable only upon sale, refinance, or payoff of the first mortgage.
Western Maryland (Garrett, Allegany counties) and the Eastern Shore have significant USDA-eligible zones; the DC/Baltimore corridor is almost entirely ineligible.
Sources for This Page
- Freddie Mac PMMS — national rate benchmark
- HUD FHA Mortgage Limits — MD loan limit data
- USDA Rural Development Eligibility — Maryland rural zone verification
- Maryland state Housing Finance Agency — program terms and current DPA availability