State Buyer Guide

First-Time Home Buyer Guide
for Maryland

Down payment assistance, Maryland housing programs, closing cost estimates, and what to know before buying — including from FSBO sellers.

Step 1 — Do This First

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$425,000

Avg Home Price

1.07%

Property Tax Rate

~$14,875

Est. Closing Costs

~1.0–1.5% total (state + county)

Transfer Tax

Maryland Housing Finance Agency Programs

The Maryland Department of Housing and Community Development is your primary source for below-market mortgage rates and down payment assistance in Maryland. Programs are available through approved lenders — not directly through the HFA.

Maryland Mortgage Program (MMP) 1st Time Advantage

Below-market rates paired with multiple DPA options

Competitive 30-year fixed mortgages at below-market rates.

Income limit: $92,500–$154,420 (varies significantly by area and household)

Learn more at Maryland Department of Housing and Community Development →

Maryland SmartBuy 3.0

Up to 15% of purchase price (max $30,000) to pay off student debt, plus 5% DPA

Unique program combining home purchase with student loan repayment assistance.

Income limit: $92,500–$154,420

Learn more at Maryland Department of Housing and Community Development →

HUD homeownership resources for Maryland →

High Value — $240/funded loan

Credible

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See real rates from multiple lenders with one soft credit pull. Credible pays up to $240 per funded loan — which means they have every reason to find you the best rate.

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Closing Costs in Maryland

Typical Closing Cost Range

3.5% of purchase price

On a $425,000 home: approximately $14,875

Transfer Tax

~1.0–1.5% total (state + county)

Maryland charges a state transfer tax of 0.5% plus a county tax that varies. Total transfer costs typically run 1.0–1.5% of the purchase price.

Attorney at Closing?

No — title company state

Attorney representation is standard at Maryland closings and strongly recommended, but not legally mandated. Budget $600–$1,000.

Key Tips for Buying in Maryland

✓The DC metro area (Montgomery, Prince George's, Howard counties) is intensely competitive — be ready to offer quickly.
✓Maryland's Homestead Property Tax Credit limits assessment increases to 10%/year — apply after purchase.
✓Check whether the property is in a flood plain — many suburban Maryland communities have flood risk.
✓Baltimore City offers outstanding value relative to the DC suburbs for buyers willing to invest in a neighborhood.

Home Inspection

HomeAdvisor

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HomeAdvisor instantly matches you with licensed, background-checked home inspectors in your area. Read real reviews, compare quotes, and book online.

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Legal Help for Maryland Buyers

While Maryland doesn't require an attorney at closing, FSBO buyers should strongly consider having one review the purchase agreement and title work.

Legal Help for FSBO Buyers

Nolo

Nolo has been the go-to legal resource for DIY buyers since 1971. Their real estate guides explain purchase agreements, contingencies, and closing in language anyone can understand.

Browse Legal Guides →

LegalZoom

Get a real estate attorney to review your purchase agreement or help you draft an offer letter — often for a fraction of traditional legal fees.

Get Legal Help →

US Legal Forms

Download state-specific purchase agreements, addenda, and disclosure forms — written by attorneys, ready to use in your state.

Browse Real Estate Forms →

Frequently Asked Questions

What first-time buyer programs are available in Maryland?

Maryland first-time buyers can access programs through the Maryland Department of Housing and Community Development (https://mmp.maryland.gov/), including the Maryland Mortgage Program (MMP) 1st Time Advantage (Below-market rates paired with multiple DPA options) and the Maryland SmartBuy 3.0 (Up to 15% of purchase price (max $30,000) to pay off student debt, plus 5% DPA). Federal programs like FHA loans (3.5% down) and USDA loans (0% down in eligible areas) are also available.

What are typical closing costs in Maryland?

Closing costs in Maryland typically run 3.5% of the purchase price. Transfer tax: ~1.0–1.5% total (state + county). Maryland charges a state transfer tax of 0.5% plus a county tax that varies. Total transfer costs typically run 1.0–1.5% of the purchase price.

Do I need an attorney to buy a home in Maryland?