Mortgage Loans in Maryland

Key Takeaways for Maryland Homebuyers in 2025

Mortgage rates are higher, but manageable.
In 2025, most Maryland buyers should expect 30-year fixed mortgage rates around 6.0%–6.6%, depending on loan type, credit score, and down payment. Rates are well above pandemic-era lows, but they have stabilized compared to 2024. Buyers should plan around today’s rates and view refinancing as a future option rather than delaying homeownership indefinitely.

Maryland is not one housing market, it’s many.
From affordable Baltimore City neighborhoods to high-cost Montgomery and Howard Counties, Maryland’s housing prices vary dramatically. Where you buy can change your monthly payment by thousands of dollars, even with the same income and loan type.

You don’t need 20% down to buy in Maryland.
Many buyers use 3%–5% down conventional loans, 3.5% FHA loans, or 0% down VA and USDA loans. Maryland also offers statewide and county-level down payment assistance, making homeownership possible even with limited upfront savings.

Maryland offers strong first-time buyer support, but it’s layered and complex.
Programs like the Maryland Mortgage Program (MMP) can provide down payment and closing cost assistance, but eligibility depends on income limits, purchase price caps, and location. Working with a lender who understands how to layer these programs is critical.

The right lender matters more in Maryland than in many states.
Higher home prices, stricter regulations, and complex assistance rules mean Maryland buyers benefit significantly from experienced guidance. A lender like Truss Financial Group helps you compare options, structure approvals correctly, and avoid costly missteps.

Introduction

Buying a home in Maryland in 2025 means navigating higher home prices, rising property taxes in certain counties, and stricter underwriting than in lower-cost states. At the same time, Maryland offers strong employment markets, proximity to Washington, D.C., and long-term property value stability.

The good news? Maryland homebuyers still have access to a wide range of mortgage programs, including conventional, FHA, VA, USDA, jumbo, reverse, and self-employed loan options, if they are structured correctly.

In this comprehensive guide, we’ll cover:

1. Current mortgage interest rates in Maryland
2. Average home prices across major cities and counties
3. Monthly mortgage cost comparisons
4. Maryland mortgage loan programs and who they’re best for
5. Pros and cons of each loan option
6. How Truss Financial Group helps Maryland buyers succeed

Current Mortgage Interest Rates in Maryland (2025)

As of late 2025, mortgage rates in Maryland have stabilized after peaking in 2024. While rates remain higher than the historic lows seen earlier in the decade, they are now moving within a more predictable range.

Here’s what Maryland buyers are typically seeing:

1. Conventional 30-Year Fixed: ~6.2% interest (APR ~6.2%)
2. FHA 30-Year Fixed: ~6.1% interest, but higher APR (~6.8%) due to mortgage insurance
3. VA 30-Year Fixed: ~5.5%–5.7% interest (APR ~5.6%)

Actual rates depend on:

1. Credit score
2. Down payment amount
3. Loan size
4. Debt-to-income ratio
5. Timing of rate lock

For context, national average 30-year fixed rates in late 2025 hover around 6.1%–6.3%, and Maryland rates typically track very closely to national trends.

Why rates are still elevated:
From 2023 through 2024, the Federal Reserve raised interest rates aggressively to control inflation. While inflation has cooled, mortgage rates tend to lag behind Fed policy changes. The result is a “new normal” where 6% mortgages are common, and historically speaking, still reasonable.

Bottom line:
Maryland buyers should plan conservatively around ~6%+ rates, focus on affordability, and remember that refinancing remains an option if rates decline in future years.

Average Mortgage Rates by Loan Type in Maryland

Rates are estimates for late 2025. FHA APR is higher due to upfront and annual mortgage insurance. VA loans have a one-time funding fee instead of monthly insurance.

Average Home Prices in Maryland’s Major Cities and Counties

Maryland home prices vary significantly by region, largely due to proximity to Washington, D.C., job concentration, and limited housing supply.

Here’s a snapshot of median home prices across major Maryland markets:

1. Baltimore City: ~$200,000
2. Baltimore County: ~$350,000
3. Prince George’s County: ~$400,000
4. Anne Arundel County: ~$450,000
5. Howard County: ~$500,000+
6. Montgomery County: ~$550,000–$600,000

Statewide median home price: ~$420,000, well above the national median.

Baltimore City remains one of the more affordable urban markets on the East Coast, while suburban counties closer to D.C. command significantly higher prices due to demand from federal employees, contractors, and professionals.

City-by-City Mortgage Cost Comparison in Maryland

To put these prices into perspective, here’s what typical monthly principal and interest payments look like using a 30-year loan, 10% down payment, and ~6.2% interest rate:

These figures include principal and interest only. Property taxes, homeowners insurance, HOA fees, and mortgage insurance (if applicable) will increase total monthly costs.

Important Maryland-specific note:
Property taxes vary widely by county and can materially affect affordability. Montgomery and Prince George’s Counties tend to have higher tax burdens, while Baltimore City combines higher tax rates with lower home values. Always evaluate full PITI (principal, interest, taxes, insurance) before committing.

Understanding Your Maryland Mortgage Loan Options

Maryland homebuyers typically choose from several core loan programs. Each serves a different borrower profile.

Conventional Mortgage Loans

Conventional loans are not government-backed and are ideal for buyers with strong credit and stable income.

1. Minimum down payment: 3%
2. PMI required if down payment is under 20% (removable later)
3. Minimum credit score: typically 620+
4. Loan limits: $726,200 in most counties (higher in certain high-cost areas)
5. Best for: Buyers with good credit who want long-term flexibility and lower total costs once PMI is removed.

FHA Loans in Maryland

FHA loans are insured by the federal government and designed to help buyers with lower credit scores or limited savings.

1. Minimum down payment: 3.5% with 580+ credit
2. More flexible debt-to-income ratios
3. Requires upfront and annual mortgage insurance (MIP)
4. FHA loan limits in Maryland are higher than many states due to home prices
5. Best for: First-time buyers or borrowers who don’t yet qualify for conventional financing.

VA Loans in Maryland

VA loans are available to eligible veterans, active-duty service members, and certain surviving spouses.

1. 0% down payment
2. No monthly mortgage insurance
3. Typically lower interest rates than conventional loans
4. One-time VA funding fee (some borrowers exempt)
5. Best for: VA-eligible buyers seeking maximum purchasing power and lower monthly payments, especially in high-cost Maryland counties.

Other Maryland Mortgage Loan Options

USDA Rural Development Loans

USDA loans offer 100% financing for homes in eligible rural and suburban areas of Maryland.

1. Zero down payment
2. Income limits apply
3. Lower interest rates than conventional loans
4. Small annual fee instead of PMI
5. Best for: Moderate-income buyers are purchasing outside major metro cores.

Jumbo Loans

Jumbo loans exceed conventional loan limits and are common in high-priced Maryland markets.

1. Typically require 700+ credit scores
2. Larger down payments (often 10–20%)
3. Stricter income and reserve requirements
4. Best for: Buyers purchasing luxury or high-value homes in Montgomery, Howard, or Anne Arundel Counties.

Pros and Cons of Popular Maryland Home Loans

Truss Financial Group – Your Maryland Mortgage Partner

Truss Financial Group provides conventional, FHA, VA, USDA, jumbo, reverse, and self-employed mortgage solutions across Maryland.

With access to 90+ lending partners and an 81% approval rate, Truss helps borrowers secure financing even when traditional lenders say no.

1. What sets Truss apart in Maryland:
2. Expertise in high-cost county lending
3. Guidance through the Maryland Mortgage Program (MMP) assistance
4. Support for self-employed and non-traditional income borrowers
5. Fast pre-approvals with no impact on credit

Whether you’re buying your first home in Baltimore or upgrading near D.C., Truss focuses on practical approvals, not theoretical ones.

Frequently Asked Questions (FAQs)

What are current mortgage rates in Maryland in 2025?

Most buyers see conventional rates around 6.2%, FHA around 6.1% (higher APR), and VA loans near 5.6%.

Does Maryland offer first-time buyer assistance?

Yes. The Maryland Mortgage Program and many counties provide down payment and closing cost assistance.

What credit score do I need to buy a home in Maryland?

Conventional loans typically require 620+, FHA 580+, VA around 620, and USDA about 640.

Do I need 20% down?

No. Many Maryland buyers purchase with 3–10% down, and VA/USDA allow zero down.

How can Truss Financial Group help me?

Truss compares lenders, structures approvals, and helps you use Maryland-specific assistance programs efficiently.