Maryland Home Loans 2026 — Complete Guide
The number people miss: Maryland's Homestead Tax Credit, which caps how fast your assessed value can grow, is not automatic — you must file a one-time application with the state. A state audit found thousands of longtime owners who never filed and lost the credit without realizing it, even after decades in the same home.
Maryland Down Payment Assistance — Maryland Mortgage Program
The Community Development Administration (CDA) runs the Maryland Mortgage Program (MMP), pairing a 30-year fixed first mortgage with down payment and closing cost assistance.
MMP Down Payment Assistance
Choosing between the flat amount and the percentage option: MMP typically lets you pick either the flat $6,000 or a percentage tier (3%, 4%, or 5% of the loan amount), each tied to a slightly different first-mortgage rate. A higher DPA percentage generally comes with a higher rate on your first mortgage — run the full 30-year comparison with your lender rather than choosing based on the upfront amount alone.
Work for a partner employer? Maryland's Partner Match program has your employer or a participating organization match your down payment funds dollar-for-dollar, up to $2,500, as a separate 0% deferred loan. Ask your HR department whether your employer participates before assuming it is unavailable.
Eligibility & Income Limits
MMP eligibility varies by product, with some options open to repeat buyers and others limited to first-time buyers (no ownership in the past 3 years). Income and purchase price limits are set by county.
Confirm your exact county limit and current DPA terms at MMP.Maryland.gov before applying.
Current Rates
| Product | Rate | Source |
|---|---|---|
| 30-yr Conventional | 6.55% | Freddie Mac PMMS, week of July 16, 2026 |
| 15-yr Fixed | 5.93% | Freddie Mac PMMS, week of July 16, 2026 |
| MMP first mortgage | Varies by DPA option chosen | Confirm current rate with an MMP-approved lender |
2026 Loan Limits by County
Montgomery and Frederick counties, part of the DC metro area, are designated high-cost and share the national ceiling. Most other Maryland counties use lower limits, though several counties near DC and Baltimore sit above the national floor.
| Area | FHA Limit | Conforming (Conventional) Limit |
|---|---|---|
| Most counties (varies — verify individually) | $541,287 or higher | $832,750 |
| Montgomery & Frederick counties (DC metro) | $1,249,125 | $1,249,125 |
Verify your exact county before house-hunting: Maryland's FHA limits vary meaningfully between counties, and several sources disagree on the exact figures for standard counties (some report the national floor, others report a higher "between" tier around $632,500 for counties like Anne Arundel, Baltimore, and Howard). Look up your specific county directly at HUD.gov rather than relying on a single statewide figure.
Property Tax in Maryland — The Homestead Filing Trap
What Buyers Should Budget For
Maryland is one of the few states where property assessment is handled by a single state agency, the State Department of Assessments and Taxation (SDAT), rather than individual counties. The Homestead Tax Credit limits how fast your taxable assessment can rise each year, with each county and municipality setting its own cap up to 10%. Critically, this credit requires a one-time application — it is not automatic. SDAT's own audit between 2012 and 2014 found thousands of longtime owners who had never filed and were quietly paying full, uncapped tax bills for years. If you buy a home in Maryland, file the Homestead application immediately through Maryland OneStop rather than assuming it transfers with the property. Separately, the income-based Homeowners' Property Tax Credit caps your tax bill relative to household income, with meaningful benefit for households earning under roughly $60,000.
Pick Your Loan Type
Are you a teacher, nurse, firefighter, police officer, EMT, or veteran? Maryland may run additional hero-specific loan programs on top of the general MMP options covered here. Browse the Hero Home Loan Programs hub and select Maryland for profession-specific options.
Frequently Asked Questions
Bottom Line: Maryland's proximity to DC keeps home prices and loan limits elevated in Montgomery and Frederick counties specifically, while MMP's down payment assistance helps offset the higher price tag statewide. The single most actionable thing a new Maryland buyer can do is file the Homestead Tax Credit application immediately after closing — it is easy to overlook and expensive to skip.
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