Maryland Home Loans & Mortgage Rates

Maryland is a high-demand, high-value market driven by two powerful economic engines: the Washington D.C. federal employment corridor and the Baltimore metro’s healthcare, education, and defense industries. With a statewide median around $410,000, Maryland is one of the more expensive states in the mid-Atlantic, but elevated FHA limits in the DC suburbs provide serious buying power.

Montgomery County (Bethesda, Silver Spring, Rockville) commands a median around $575,000. Howard County (Columbia) sits around $530,000. Anne Arundel County (Annapolis) runs approximately $450,000. Prince George’s County offers better affordability at roughly $380,000 while still providing DC metro access. Baltimore City is the value play at about $220,000 median, with Baltimore County around $325,000. Western Maryland (Allegany, Garrett counties) and the Eastern Shore are extremely affordable under $250,000.

Maryland has a complex tiered FHA limit structure. DC metro counties (Calvert, Charles, Frederick, Montgomery, Prince George’s) receive the ceiling FHA limit of $1,249,125. Baltimore metro counties (Anne Arundel, Baltimore City, Baltimore County, Carroll, Harford, Howard, Queen Anne’s) get $747,500. Other counties sit at the baseline $541,287. This gives DC-area buyers tremendous FHA buying power.

The Maryland Mortgage Program (MMP) through DHCD offers first-time buyers DPA of 3%, 4%, or 5% of the loan amount, plus competitive fixed rates. Maryland SmartBuy 3.0 is a unique program paying off up to $20,000 in student debt at closing. Montgomery, Anne Arundel, and other counties have additional local programs.

Maryland has some of the highest closing costs in the nation due to transfer taxes and recordation taxes that vary significantly by county. First-time Maryland buyers get a break: the state transfer tax drops from 0.50% to 0.25% for first-time purchasers.

2026 Loan Limit Takeaways

Maryland’s DC metro counties (Montgomery, PG, Frederick, Charles, Calvert) receive the maximum $1,249,125 FHA ceiling, meaning virtually any home in these counties can be purchased with FHA financing. Baltimore metro counties get $747,500, still very generous. Note the “FHA gap” in Anne Arundel and Howard counties where the FHA limit ($747,500) is below the conforming limit ($832,750). In these areas, conventional loans offer more buying power for homes priced $747,500-$832,750. Eastern Shore and Western Maryland sit at baseline.

Down Payment Assistance Notes

MMP programs are the primary state vehicle. The DPA amount (3-5%) provides meaningful assistance in this high-cost market. SmartBuy 3.0 is nationally unique for student debt relief. Montgomery County ($25,000) and Anne Arundel County ($40,000) have exceptionally generous local programs. First-time buyers get a transfer tax break (state portion drops from 0.50% to 0.25%). All MMP loans require homebuyer education.

Closing Costs in Maryland

Maryland has some of the highest closing costs in the country due to a layered transfer tax and recordation tax system.

State Transfer Tax: 0.50% of the sale price. First-time Maryland homebuyers pay only 0.25% (seller pays the other 0.25%). Customarily split 50/50 between buyer and seller.

County Transfer Tax: Varies significantly by county. Montgomery County: 1.0%. Prince George’s County: 1.4%. Anne Arundel County: 1.0%. Howard County: 1.0%. Baltimore County/City: 1.5%. Frederick County: 0% (no county transfer tax). Carroll County: 0%.

Recordation Tax: Charged on both the deed (purchase) and the mortgage. Rates vary by county from $5.00 to $12.00 per $1,000. Montgomery County: $6.90/$1,000 (up to $500K), $10.00/$1,000 (over $500K). Prince George’s County: $5.00/$1,000. Anne Arundel: $7.00/$1,000. This tax applies to the mortgage amount, adding significant cost.

Title Company State: Maryland uses title companies for closings. Attorney involvement varies. Title insurance and settlement fees typically $1,500-$3,000.

Estimated Total Buyer Closing Costs: On a $410,000 purchase in the DC suburbs: expect approximately $12,000-$22,000+ (3.0-5.5%) depending on county. First-time buyers save significantly on transfer tax. Montgomery County and Prince George’s County are among the most expensive for closing costs. Frederick County has lower costs due to no county transfer tax.

Property Taxes in Maryland

Maryland property taxes are moderate, with rates varying by county and municipality.

Statewide Average: The average effective property tax rate is approximately 0.87-1.05%, near or slightly above the national average. Maryland also charges a small state property tax of $0.132 per $100 of assessed value. Property is assessed at 100% of market value, reassessed every 3 years with phased-in increases.

Metro Area Rates: Montgomery County approximately 0.88% effective ($0.883 per $100 assessed). Prince George’s County about 1.07%. Anne Arundel County approximately 0.96%. Howard County about 1.04%. Baltimore City has the highest at roughly 1.25% ($1.247 per $100). Baltimore County approximately 1.10%. Frederick County about 1.00%.

Exemptions: Maryland’s Homestead Tax Credit caps assessment increases at 10% per year (some counties cap lower: Montgomery caps at 0% for qualifying seniors). Homeowner’s Tax Credit available for lower-income homeowners. Various senior and disability exemptions available.

On a $575,000 home in Montgomery County, expect roughly $5,000-$5,700 per year. In Baltimore City on a $220,000 home, expect approximately $2,740. In Anne Arundel County on a $450,000 home, expect about $4,320.

USDA Loan Eligibility in Maryland

Maryland has limited but notable USDA eligibility in its rural areas.

Eligible areas include Western Maryland (Allegany County, Garrett County), parts of the Eastern Shore (Dorchester, Somerset, Wicomico, Worcester County portions outside Ocean City), and southern Maryland’s rural sections (St. Mary’s County portions, Calvert County rural areas). Parts of Cecil County and Kent County also qualify.

Most of the DC metro and Baltimore metro are ineligible. However, the further you move from these employment centers, the more USDA territory opens up. Caroline County and portions of Frederick County’s western edge may have pockets of eligibility.