Who is considered a first-time home buyer in Maryland?
For the state loan programs, you are a first-time buyer if you have not owned a home you lived in during the last three years. The transfer tax break uses a different test: you have never owned a Maryland home as your principal residence.
By Stephen Wilson, REALTOR and owner of a licensed Maryland general contractor. Updated October 25, 2026.
Two definitions, two benefits
| Benefit | Who counts as first-time | Where to confirm |
|---|---|---|
| Maryland Mortgage Program loans and down payment assistance | Have not owned residential property you lived in during the past 3 years. Waived in Targeted Areas, and once for eligible veterans. | mmp.maryland.gov or an MMP-approved lender |
| Lower state transfer tax at settlement | Have never owned a home in Maryland as your principal residence, and will live in this one | Your title company |
So a buyer who sold a Baltimore condo four years ago can use MMP, but does not get the transfer tax break. A buyer who owned a home in Virginia last year gets the transfer tax break, but has to buy in a Targeted Area to use MMP.
What the Maryland Mortgage Program offers
MMP is run by the state's Department of Housing and Community Development and works through approved private lenders. Its loans pair a 30-year fixed mortgage with help toward the down payment and closing costs, offered as a deferred loan or a set amount depending on the product. Programs also exist for buyers with student debt and for buyers using county or employer assistance alongside the state's.
- Household income and purchase price limits apply and vary by county and household size.
- A homebuyer education class is required before settlement.
- Products, assistance amounts and limits change often. Check mmp.maryland.gov or ask an MMP lender for the current list.
The transfer tax break at settlement
Maryland's state transfer tax is normally 0.5% of the price. When every buyer is a first-time Maryland homebuyer buying a home to live in, the rate drops to 0.25% and the seller pays it, which can save you thousands in cash at closing. Some counties have their own first-time buyer reductions on county transfer or recordation tax. Your title company applies them if you sign the affidavit, so tell your agent early. Our closing tax guide explains the rest of the closing taxes.
A first-time buyer checklist
- Check your credit and pay down card balances before you apply. Do not open new credit or finance a car until after settlement.
- Save for more than the down payment. Budget for the earnest money deposit, the home inspection, the appraisal, and a cushion for moving and the first repairs.
- Get pre-approved with a lender who knows the state programs. Ask what your full payment would be, with property tax, insurance and any HOA dues.
- Pick your areas. Our county guides compare schools, commutes and prices.
- Tour homes and make an offer. Our step-by-step buying guide walks through the contract, inspection and settlement.
Ready to look? Start with this week's new listings.
Quick answers
- Who is considered a first-time home buyer in Maryland?
- For Maryland Mortgage Program (MMP) loans: anyone who has not owned residential property they lived in during the past three years. For the state transfer tax break: anyone who has never owned a Maryland home as their principal residence. You can be first-time under one test and not the other.
- Can I be a first-time buyer if I owned a home before?
- Yes, for MMP purposes, if it has been at least three years since you owned a home you lived in. MMP also waives the first-time rule when you buy in a federally designated Targeted Area, and has a one-time exemption for some veterans.
- What do first-time buyers get in Maryland?
- MMP loans with down payment and closing cost assistance for buyers under the income limits, and a lower state transfer tax at settlement (0.25% instead of 0.5%, paid by the seller) for first-time Maryland homebuyers buying a home to live in. Some counties add their own help.
- What credit score do I need to buy a house in Maryland?
- It depends on the loan. MMP loans and most FHA lenders currently look for a score around 640 or higher, and conventional loans often want more. Your lender will tell you exactly where you stand, and what to fix, from a single credit pull.
This guide is general information, not legal, tax or financial advice. Rules change and vary by county; confirm the details for your situation with the agency named above, a tax professional or an attorney.