by Eze Okwodu
A plain-English guide for Maryland buyers
Buying your first home in Maryland, explained simply
No jargon, no wall of legal text — just what you need, what Maryland will help pay for, and what to do if something doesn't go to plan.
Prices and program numbers current as of September 2026
As low as $0
down payment (VA/USDA loans)
Up to $50,000
in Maryland down-payment help
640
credit score for most state help
~2–3 months
typical time to closing
"First-time buyer" means three different things
Maryland uses more than one definition depending on what you're applying for. You could qualify for one and not another — so it's worth checking each one, not just assuming.
For state loan help (MMP)
You haven't owned a home you lived in during the past 3 years. Veterans and a few special areas get exceptions.
For the tax discount
You have never owned a home you lived in, anywhere in Maryland. There's no 3-year window here — it's a lifetime test.
For county programs
Usually the same 3-year rule as the state program — but every county sets its own version, so always double-check.
Your journey to the front door
Nine stops, start to finish. Some overlap — your agent and lender are often working two or three of these at once.
1–4 weeks
Get your finances ready
Check your credit, build a simple budget, and take a homebuyer education class (required for Maryland state help — can be done online).
3–7 days
Get pre-approved
Talk to at least 3 lenders, including one approved for Maryland's state program, and compare their offers side by side.
Before touring homes
Sign an agreement with your agent
Maryland now requires a written agreement about how your agent gets paid before you start touring homes — ask about this upfront.
Ongoing
Find the home
Search within your real monthly payment, not just the sale price. Flag condos, wells, or fixer-uppers to your lender before you offer.
1–3 days
Make an offer
Your agent writes the offer with protections built in: financing, inspection, and appraisal "outs" in case something goes wrong.
10–14 days
Inspect the home
A professional checks the property. You can ask the seller to fix things, ask for money instead, or in serious cases walk away.
2–4 weeks
Appraisal & underwriting
The bank double-checks the home's value and your file. Answer every request for paperwork quickly — this is the biggest delay risk.
3+ business days before closing
Review your final numbers
You'll get a "Closing Disclosure" — compare it line by line against what you were originally quoted.
Closing day
Sign, get keys, move in
Do a final walk-through, verify wiring instructions by phone (wire fraud is real), sign, and the home is yours.
Four things to have ready
Gather these before you start touring homes — it's the single biggest thing that keeps a purchase on schedule.
Your paperwork
Photo ID, Social Security number, two years of pay stubs / tax returns, two months of bank statements.
- Explanation for any large deposits
- Gift letter, if family is helping with the down payment
A credit score of 640+
That's the line for most Maryland state help. Below that, FHA loans can still work with a score as low as 580.
- Pull your report and fix any errors first
- Pay down card balances — it moves your score fastest
3–9% of the price, in cash
That covers your down payment and closing costs — not just the down payment alone. Maryland grants can cover much of this.
- 3.5% down for FHA loans
- 0% down possible for VA and USDA loans
A homebuyer education certificate
Required if you use Maryland's state loan program. A short online class, valid for 12 months, works statewide.
- Do this first — it often catches problems early
- One county's class counts in every county
Where does your credit score put you?
Score requirements stack: your loan type sets a floor, Maryland's program can add its own, and your specific lender can require even more.
Below 580 — FHA generally isn't available; work on your score first
580–639 — FHA works; most Maryland state help is not yet available
640+ — Maryland's state loan program opens up
Money Maryland can put toward your purchase
This is the short list. Your exact amount depends on income, county, and the specific loan you choose — a lender can screen you for all of these at once.
3–6%
Maryland state down-payment loans
0%-interest loans layered on top of your mortgage, from Maryland's Community Development Administration. Repaid only when you sell, refinance, or pay off the home.
$50,000
County programs
Montgomery County (for certain county/school employees) and Prince George's County (for any qualifying first-time buyer) both currently offer up to this amount.
$10K–$20K+
Baltimore City incentives
Several stackable city programs for buyers purchasing in Baltimore City, plus a $5,000 bonus if you're buying the home you currently rent.
$1,000
A state tax you won't pay
Maryland's transfer tax drops from 0.5% to 0.25% for first-time buyers — and the seller, not you, pays that reduced amount. On a $400,000 home, that's $1,000 in your pocket.
$0
Recording tax, mostly waived
Maryland law requires the seller to cover recording and local transfer taxes for a qualifying first-time buyer's home purchase, unless your contract says otherwise.
Up to $25,000
Student debt payoff (SmartBuy)
If you owe at least $1,000 in student loans, Maryland SmartBuy can pay it off at your closing — with a 720+ credit score requirement.
If something goes sideways, here's the fix
Almost nothing here is a dead end. Most snags have two or three realistic ways through.
Words you'll hear, in plain English
- Pre-approval
- A lender's estimate of what you can borrow — not a guarantee. The real approval comes later.
- DTI (debt-to-income)
- Your monthly debts plus your future house payment, divided by your income. Lower is better.
- Earnest money
- A deposit showing you're serious about the offer. It's credited back to you at closing.
- Appraisal
- The bank's own check on what the home is really worth — separate from your inspection.
- DPA (down-payment assistance)
- Extra loan money, usually at 0% interest, that helps cover your down payment.
- PMI
- Insurance that protects the lender when you put down less than 20%. It can be cancelled later.
- Closing / Settlement
- The final appointment where you sign everything and get your keys.
- Contingency
- A condition that lets you walk away — for example, if financing falls through or the inspection turns up a serious problem.
Where to go for the real answers
Maryland Mortgage Program
mmp.maryland.gov · 301-429-7852
Your county housing office
Ask about Pathway to Purchase, MEDPAL, or your county's own program
CFPB consumer help line
855-411-2372 — for questions about your loan estimate or closing paperwork
This guide simplifies a complex process for everyday reading. It's not legal, tax, or lending advice — every number here should be confirmed with an approved Maryland lender, your county housing office, and a Maryland real estate attorney or settlement company before you rely on it for a real purchase. See the companion research guide for full detail and sourcing.