Maryland Mortgage Guide 2026
Everything you need to know about getting a mortgage in Maryland — loan limits by county, available programs, property taxes, closing costs, and how the Maryland housing market affects your financing options.
Maryland Loan Limits by County (2026)
Conforming loan limits determine the maximum loan amount eligible for conventional financing through Fannie Mae and Freddie Mac. FHA loan limits track conforming limits in most counties, but the Baltimore and Washington D.C. metro areas both carry elevated high-cost limits that don’t always move together — always check both columns.
| County | Conforming Limit | FHA Limit | Notes |
|---|---|---|---|
| Montgomery County | $1,249,125 | $1,249,125 | DC-metro high-cost ceiling |
| Prince George’s County | $1,249,125 | $1,249,125 | DC-metro high-cost ceiling |
| Frederick County | $1,249,125 | $1,249,125 | DC-metro high-cost ceiling |
| Charles County | $1,249,125 | $1,249,125 | DC-metro high-cost ceiling |
| Calvert County | $832,750 | $541,287 | Southern MD — national floor, despite DC-region location |
| Anne Arundel County | $832,750 | $747,500 | Baltimore-metro intermediate tier |
| Baltimore County | $832,750 | $747,500 | Baltimore-metro intermediate tier |
| Baltimore City | $832,750 | $747,500 | Baltimore-metro intermediate tier |
| Howard County | $832,750 | $747,500 | Baltimore-metro intermediate tier |
| Carroll County | $832,750 | $747,500 | Baltimore-metro intermediate tier |
| Harford County | $832,750 | $747,500 | Baltimore-metro intermediate tier |
| Queen Anne’s County | $832,750 | $747,500 | Baltimore-metro intermediate tier |
| Cecil County | $832,750 | $630,200 | Philadelphia-metro intermediate tier |
| All other Maryland counties | $832,750 | $541,287 | Standard floor (Eastern Shore, Southern MD, Western MD) |
FHA and conforming limits diverge in the Baltimore metro. In Anne Arundel, both Baltimore jurisdictions, Howard, Carroll, Harford, and Queen Anne’s counties, the FHA limit ($747,500) is meaningfully below the conforming limit ($832,750) — a real gap, not a typo. Always verify your specific county at HUD’s official FHA limit lookup tool.
Loan Programs Available in Maryland
All major federal mortgage programs are available statewide in Maryland. Here’s how each compares for Maryland buyers:
| Program | Min Down Payment | Min Credit Score | Best For |
|---|---|---|---|
| FHA | 3.5% | 580 | First-time buyers, lower credit scores |
| VA | 0% | 580–620 (lender overlay) | Veterans, active duty, and the large DoD/military workforce around Fort Meade, APG, and NAS Patuxent River |
| USDA | 0% | 640 | Eastern Shore and Western Maryland buyers who meet income limits |
| Conventional | 3–20% | 620 | Strong credit, wants to avoid lifetime MIP |
| Jumbo | 10–20% | 700+ | Purchases above conforming limits (common in Montgomery/PG counties) |
| MMP 1st Time Advantage | As low as 0%* | 640–660 | First-time buyers using Maryland Mortgage Program DPA |
*With Maryland Mortgage Program down payment assistance layered onto an FHA or conventional base loan.
Maryland Mortgage Program (MMP)
The Maryland Mortgage Program, run by the Maryland Department of Housing and Community Development (DHCD), is the state’s housing finance agency and offers below-market mortgage rates and down payment assistance for eligible Maryland buyers. All MMP loans must be originated through a participating lender.
MMP Loan Types
| Program | Who Qualifies | Key Feature |
|---|---|---|
| 1st Time Advantage | First-time buyers only (or haven’t owned in 3+ years) | Below-market rate; can be paired with $6,000 DPA |
| Flex 3%/4%/5%/6% | First-time and repeat buyers | DPA equal to a percentage of the first mortgage; income and purchase price limits apply |
| HomeStart | Households at or below 50% Area Median Income | DPA up to 6% of the loan for the most income-constrained buyers |
| Partner Match | Buyers working with a participating employer or local partner | Matched DPA up to $2,500 on top of other MMP assistance |
MMP Down Payment Assistance
The flagship 1st Time Advantage 6000 loan pairs a below-market first mortgage with a $6,000 zero-interest, deferred-payment second loan for down payment and closing costs — repaid only when the home is sold, refinanced, or the first mortgage is paid off. The Flex products instead size assistance as a percentage (3–6%) of the first mortgage. Assistance must be obtained through an MMP-approved participating lender.
Income and purchase-price limits matter. MMP eligibility is capped by both household income and purchase price, and both limits vary by county — Montgomery and other DC-metro counties allow meaningfully higher limits than rural Maryland counties. Verify current county-specific limits at dhcd.maryland.gov.
Property Taxes in Maryland
Maryland’s effective property tax rate is approximately 0.95% of assessed value statewide, though it varies meaningfully by county and includes a local piggyback income tax structure that doesn’t apply to real property. This directly affects your monthly PITI payment and your qualifying DTI.
Key rule: Maryland reassesses properties on a rolling three-year cycle, but the Homestead Tax Credit caps how much your taxable assessment can increase each year for owner-occupied primary residences (statewide cap of 10%, though many counties set a lower local cap). This credit is not automatic — you must apply.
| Home Value | Est. Annual Tax (0.95%) | Monthly Escrow |
|---|---|---|
| $350,000 | ~$3,325 | ~$277/mo |
| $450,000 | ~$4,275 | ~$356/mo |
| $550,000 | ~$5,225 | ~$435/mo |
| $700,000 | ~$6,650 | ~$554/mo |
Rates vary widely by jurisdiction. Maryland’s 24 counties/city each set their own local property tax rate on top of the state rate, and Baltimore City and some municipalities add further local rates. The 0.95% figure is a statewide effective average — verify parcel-specific rates with your county’s Office of Finance or the State Department of Assessments and Taxation (SDAT) before finalizing your budget.
Closing Costs in Maryland
Maryland closing costs typically run 2%–5% of the purchase price for buyers — on the higher end nationally, mainly because Maryland (unlike states such as Utah) charges both a state transfer tax and a state recordation tax, plus county-level add-ons. Examples below assume a $550,000 purchase with 5% down (a $522,500 loan).
| Fee | Rate / Amount | On a $550,000 Purchase |
|---|---|---|
| Loan origination fee | 0.5–1.2% of loan amount | ~$2,600–$6,300 |
| Appraisal | $600–$900 (higher for unique properties) | $600–$900 |
| Title insurance (lender’s) | Based on loan amount | ~$500–$1,000 |
| Title insurance (owner’s) | Based on purchase price; optional but recommended | ~$450–$900 |
| Settlement / attorney fee | Maryland closings are typically attorney- or title-company-conducted | $500–$1,200 |
| State transfer tax | 0.5% of purchase price (often split buyer/seller; reduced rate for first-time MD buyers) | ~$1,375–$2,750 |
| State recordation tax | ~$3.30 per $500 of value (varies slightly by county) | ~$3,600 |
Transfer and recordation tax are real costs here: unlike no-transfer-tax states, Maryland buyers should budget specifically for the state transfer tax plus recordation tax stack, and check whether their county layers on an additional local transfer tax (several Maryland counties do). First-time Maryland buyers purchasing a principal residence may qualify for a reduced state transfer tax rate — confirm eligibility with your title company.
Maryland Housing Market Overview (2026)
Maryland’s housing market is anchored by the Washington D.C. and Baltimore metro areas, with strong federal-government and defense-sector employment supporting demand in the DC suburbs, a large military and defense-contractor presence around Fort Meade, Aberdeen Proving Ground, and NAS Patuxent River, and more moderate pricing on the Eastern Shore and in Western Maryland. Statewide, the market has been cooling gradually from its 2021–2022 peak, with inventory improving and price growth moderating in most counties.
| Area | Median Price (Est.) | Market Trend | Key Notes |
|---|---|---|---|
| Montgomery County | $620,000–$720,000 | Stable | DC-metro high-cost limits apply; strong federal-employment base |
| Prince George’s County | $430,000–$500,000 | Stable | More affordable DC-metro option; high-cost loan limits still apply |
| Baltimore City | $180,000–$260,000 | Improving inventory | Wide price variance by neighborhood; strong first-time-buyer and DPA activity |
| Baltimore / Anne Arundel Counties | $400,000–$480,000 | Stable | Core Baltimore-metro suburbs; intermediate FHA tier |
| Anne Arundel (Annapolis area) | $500,000–$600,000 | Stable | Naval Academy proximity supports steady VA loan volume |
| Eastern Shore (Talbot, Queen Anne’s, Wicomico) | $330,000–$450,000 | Balanced | Broad USDA eligibility outside town centers; seasonal/second-home demand in some areas |
| Western Maryland (Washington, Allegany, Garrett) | $220,000–$310,000 | Balanced | Most affordable region; broad USDA eligibility |
