Buying Your First Home in Maryland — Loans, Grants, Steps

Buying Your First Home in Maryland — Step‑by‑Step

A clear path from curiosity to closing day.

Updated September 02, 2025 · 6–8 min read

You may be a “first‑time buyer” again after 3 years without ownership.
Down payment assistance and grants may stack with loans.
Ask about Maryland Mortgage Program options and local overlays.

Who Counts as a First‑Time Buyer?

Most programs define it as no home ownership in the last three years. Exceptions exist for certain hardship cases and displaced homemakers.

Loan Options

  • Conventional 3% down
  • FHA low down with flexibility
  • VA for eligible service members
  • USDA for eligible rural areas

Assistance & Grants

State and county programs can help with down payment and closing costs. Pair with lender credits where allowed.

Steps in the Process

  • Budget and pre‑approval
  • Tour, offer, inspection, appraisal
  • Final underwriting, clear to close, keys

Avoid These Mistakes

  • Opening new debt before closing
  • Skipping inspection contingencies lightly
  • Overlooking total monthly cost (PITI + HOA)

Keep Learning

Check rates drivers in What Affects Mortgage Rates? and browse areas via Communities.

FAQ

Do I still qualify if I owned a home more than 3 years ago?

In many cases, yes—you may be considered a first‑time buyer again for certain programs.

What’s the lowest down payment?

Conventional can be as low as 3% down; FHA 3.5%; VA/USDA may allow 0% for eligible buyers.

How long does the process take?

Typically 30–45 days from contract to closing, depending on appraisal and underwriting timelines.

What closing costs should I expect?

Budget 2–4% of purchase price for lender, title, and government fees—some assistance may offset these.

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