Getting a conventional loan in Maryland: numbers, limits and rules

On Maryland’s rough $420,000 median, a conventional loan with 5% down means $21,000 at closing and about $3,125 a month with taxes and mortgage insurance; with 20% down, $84,000 and about $2,478. Everything below is worked on those numbers and on the state rules that change them.

Loan limits: the Maryland picture

A conventional loan is conforming when it fits Fannie Mae and Freddie Mac’s limit and their guidelines; in Maryland that limit is $832,750 for a one-unit home in 2026. With 20% down, a purchase up to about $1,040,938 stays conforming; with 5% down, up to about $876,579. The state’s $420,000 median leaves ample room, so a typical purchase here is conforming unless the buyer is in a premium neighborhood. Every Maryland county is in the table below; see conforming loan limits and jumbo loans.

2026 conforming loan limits by county in Maryland

Loan limits in Maryland run from the $832,750 baseline (19 counties) to $1,249,125 in Charles County, Frederick County, Montgomery County and 1 more, the national ceiling of 150% of baseline; 5 counties are above baseline in 2026. Two-, three- and four-unit limits follow the same county pattern.

Source: FHFA, Conforming Loan Limit Values for 2026 (county list, mortgages acquired in calendar year 2026). Limits are for Fannie Mae and Freddie Mac loans; FHA and VA use their own county figures.

Down payment and monthly payment, four ways

Each row is the same $420,000 Maryland home at 6.5% for 30 years — only the down payment changes. PMI is an illustrative market rate for that down payment; property tax is the state’s rough 1.01% effective rate divided by twelve.

Under 20% down, conventional loans require mortgage insurance until the loan-to-value falls; the next section gives the ${e.nom} timeline. Payment tables at other amounts and rates: mortgage payment tables.

How long you pay PMI here

Mortgage insurance on a conventional loan is temporary. With only the scheduled payments at 6.5%, the Maryland buyer who put 5% down reaches the 80% request point after about 10 years and 4 months and the 78% automatic point after about 11 years and 3 months; with 10% down the request point comes after about 7 years and 11 months. Paying an extra $252 a month toward principal, or asking for cancellation on a new appraisal after two years of appreciation, shortens the clock. The full rules are on how to remove PMI.

Recording taxes, transfer taxes and closing practice

Maryland settlements are conducted by title companies and settlement attorneys, many of whom own title agencies, and no statute requires a lawyer at the table. Title insurance producers must be licensed by the Maryland Insurance Administration, and the settlement agent disburses only with collected funds. Maryland closing costs are among the highest in the country because of state and county recordation and transfer taxes layered on top of ordinary fees.

Maryland taxes the debt itself: every county levies a recordation tax on the principal amount secured by the deed of trust, at rates that vary by county and in some counties climb for larger loans, typically paid by the borrower. A refinance of a principal residence is exempt to the extent of the outstanding balance being replaced (Tax-Property 12-108(g)). On the deed, the state transfer tax is 0.5 percent (reduced to 0.25 percent and charged to the seller for first-time Maryland homebuyers) plus a county transfer tax, so Maryland closing taxes can approach 3 percent in some jurisdictions. Maryland’s state transfer tax is 0.5% (reduced to 0.25% and paid entirely by the seller for first-time buyers of a principal residence), plus county transfer taxes of 0% to 1.5% and state recordation tax that varies by county; totals of 1.5% to 3% are common, typically split.

Maryland is among the costlier states to close in because of layered transfer and recordation taxes; even with the first-time buyer reduction, buyer costs commonly run 3% to 4% of the price in the Baltimore and Washington suburbs.

Maryland rules that touch a conventional loan

Prepayment. Maryland’s Commercial Law Title 12 generally bars a lender from charging a prepayment penalty on a loan secured by the borrower’s home, with the rule found in section 12-105 and echoed in the alternative mortgage subtitles. On a conforming loan the question is moot — the agencies do not accept penalties — but check a portfolio or jumbo note.

Spouses and title. Maryland is a separate-property state where a married couple taking title together holds as tenants by the entirety by default.

Homestead. Maryland’s creditor homestead exemption, under Courts and Judicial Proceedings 11-504(f), shelters owner-occupied residential equity up to an amount tied to the federal bankruptcy homestead figure, roughly $30,000, and it cannot be used twice within eight years.

The complete state layer — licensing, predatory-lending limits, disclosures, foreclosure — is on mortgage laws in Maryland.

Frequently asked questions

What is the conforming loan limit in Maryland for 2026?

It depends on the county. The 2026 baseline of $832,750 applies in 19 of Maryland’s 24 counties; 5 high-cost counties carry a higher one-unit limit, up to $1,249,125 in Charles County, Frederick County, Montgomery County and 1 more. The full county table is on this page.

When can I cancel PMI on a conventional loan in Maryland?

Under the federal Homeowners Protection Act you may request cancellation when the balance reaches 80% of the original value and the servicer must cancel automatically at 78%. On a $420,000 Maryland home bought with 5% down at an illustrative 6.5%, scheduled payments reach 80% after about 10 years and 4 months and 78% after about 11 years and 3 months; extra principal or a new appraisal showing appreciation can move the date up.

Does Maryland add anything to a conventional loan’s closing costs?

Maryland taxes the debt itself: every county levies a recordation tax on the principal amount secured by the deed of trust, at rates that vary by county and in some counties climb for larger loans, typically paid by the borrower. Maryland’s state transfer tax is 0.5% (reduced to 0.25% and paid entirely by the seller for first-time buyers of a principal residence), plus county transfer taxes of 0% to 1.5% and state recordation tax that varies by county; totals of 1.5% to 3% are common, typically split. Maryland is among the costlier states to close in because of layered transfer and recordation taxes; even with the first-time buyer reduction, buyer costs commonly run 3% to 4% of the price in the Baltimore and Washington suburbs.

Related: DSCR loans vs conventional for investment property: qualify on rent or on income, Seller concessions limits: how much a seller can pay toward your closing costs, Conventional loans for condos and second homes: the extra rules, Refinancing with bad credit: what is realistic below 620, 660 and 700. First home in Maryland: programs and assistance. Hub: Conventional loan.