If someone has told you that you need 20 percent saved to buy a house, that is a myth. The actual down payment to buy a house in Maryland can be as low as zero depending on the loan program, and most buyers I work with are putting down far less than 20 percent.
The 20 percent number is not made up. It represents a real threshold on conventional loans: hit 20 percent down and you avoid private mortgage insurance (PMI). But it was never a legal minimum, and today there are multiple loan programs designed to get qualified buyers into a home with 3.5%, 3%, or even nothing down.
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The 20 Percent Down Myth: Where It Comes From
For buyers researching the down payment to buy a house in Maryland, the gap between the myth and the reality is significant. The 20 percent figure became conventional wisdom because it has a genuine benefit: avoid PMI and your monthly payment is lower. PMI typically adds 0.5 to 1.5 percent of the loan amount to your annual cost. On a $350,000 loan, that can mean $145 to $435 per month.
What nobody explains is that waiting years to save 20 percent carries its own cost. In Southern Maryland, home prices have been rising. Every year you delay buying to accumulate a larger down payment, you may also be chasing a higher purchase price. For most buyers, the math does not favor waiting indefinitely.
Down Payment Options When Buying a House in Maryland
There is no single correct amount to put down. The right number depends on your loan type, credit score, income, and which programs you qualify for. Here are the main options available to Maryland buyers in 2026.
FHA Loan: 3.5% Down
An FHA loan requires a minimum 3.5% down payment with a credit score of 580 or higher. If your score falls between 500 and 579, you can still qualify with 10% down. FHA allows the entire down payment to come from gift funds, so you do not have to save every dollar yourself.
FHA loans are widely used by first-time buyers in Charles County and Calvert County because the credit requirements are more flexible than conventional loans. If you are new to the buying process, the first-time home buyer guide for Southern Maryland covers loan options, county market data, and the step-by-step process in one place. The main tradeoff: FHA loans carry mortgage insurance for the life of the loan unless you later refinance to a conventional product after building sufficient equity.
VA Loan: 0% Down
Active duty military, veterans, and surviving spouses can purchase with no down payment using a VA home loan. No down payment, and no PMI. If you or your spouse have served, this is almost always the strongest loan product available to you.
Southern Maryland has a large military community, particularly around NAS Patuxent River in St. Mary’s County. I work regularly with active duty buyers, veterans, and PCS-relocating families using their VA benefit to buy in Charles, Calvert, and St. Mary’s counties. If you are relocating here on orders, the Southern Maryland military relocation guide covers what to expect from the process. If you have earned this benefit, use it.
USDA Loan: 0% Down in Eligible Areas
USDA loans offer zero down payment for buyers purchasing in eligible rural and suburban areas. Calvert County has broad USDA loan eligibility, and qualified areas exist in Charles and St. Mary’s counties as well. Income limits apply: in Calvert County, the 2026 household income limit for up to four people is $111,550.
USDA loans carry a guarantee fee in place of PMI, but the fee is generally lower than FHA mortgage insurance. For buyers who qualify on both location and income, this is one of the most underused options in Southern Maryland. You can verify property eligibility using the USDA eligibility map.
Conventional Loan: 3% to 5% Down
Standard conventional loans typically require 5% down. Fannie Mae HomeReady and Freddie Mac Home Possible programs allow as little as 3% for buyers who meet income guidelines. Unlike FHA, PMI on a conventional loan cancels automatically once you reach 20% equity, which makes the long-term cost more predictable for buyers with stronger credit.
Maryland Mortgage Program Down Payment Assistance
The Maryland Mortgage Program (MMP) offers down payment and closing cost assistance layered on top of a first mortgage for eligible buyers. Two options worth knowing:
DSELP (Down Payment and Settlement Expense Loan Program) provides up to $15,000 as a 0% deferred second mortgage. No payments are required on it. The balance is repaid only when you sell, refinance, or pay off the home.
1st Time Advantage loan products can include 3% to 5% of the loan amount as additional assistance. MMP also matches contributions from approved partner organizations up to $2,500.
MMP programs have income and purchase price limits that vary by county and must be accessed through an MMP-approved lender. They are worth asking about if you are a first-time buyer or have not owned a home in the past three years.
What Changes With a Smaller Down Payment
Putting less down is not free. Here is what it actually affects:
The minimum down payment to buy a house in Maryland is one number. What you can realistically afford each month after closing is a different number entirely. Both matter.
You will likely pay PMI, except on VA and USDA loans. On a $350,000 loan with 3.5% down, PMI typically adds $150 to $250 per month depending on your credit score and lender. Your loan balance is larger, so your monthly payment is higher than it would be with 20% down. And you build equity more slowly in the early years of the loan.
But consider the other side as well. Cash reserves after closing matter: repairs happen, appliances fail, and moving has real costs. Buyers who stretch every dollar to hit 20% down sometimes arrive at closing house-rich and cash-poor. That is its own kind of financial risk. A smaller down payment with a healthy reserve account is often more stable than depleting your savings to hit an arbitrary threshold.
What James Has Seen Work for Southern Maryland Buyers
Most buyers I work with are not putting down 20 percent. They are using FHA at 3.5%, VA at zero, or pairing a conventional loan with MMP assistance. The buyers who come in convinced they cannot buy yet are often surprised when we run the actual numbers together.
Working with a trusted local agent in Charles County or Calvert County means having someone who knows which lenders work well with each loan type in Southern Maryland and can connect you with the right people before you start shopping. The question is not “do I have 20 percent?” The right question is “which program fits my credit, income, and goals?” Those are different questions, and the second one usually has a better answer.
If you want to talk through what the right down payment to buy a house in Maryland looks like for your specific situation, reach out below. I will give you a straight answer.
A note from Aimee: Once you are under contract, I step in to track every deadline, coordinate between your lender and title company, and make sure nothing falls through the cracks. James handles the showings and the negotiations. I make sure the closing actually happens. We have been doing this together for over 10 years.
Frequently Asked Questions: Down Payment to Buy a House in Maryland
How much down payment do I need to buy a house in Maryland?
It depends on your loan type. VA and USDA loans allow zero down payment for qualifying buyers. FHA requires 3.5% with a 580 or higher credit score. Conventional loans start at 3% to 5% down. Maryland Mortgage Program assistance can help cover down payment and closing costs on top of your first mortgage.
Can I buy a house in Maryland with no money down?
Yes. VA loans are available to eligible active duty military, veterans, and surviving spouses with no down payment required. USDA loans cover eligible rural and suburban areas in Charles, Calvert, and St. Mary’s counties with zero down for buyers who meet income limits. Both programs also eliminate PMI.
Does Maryland have down payment assistance for home buyers?
Yes. The Maryland Mortgage Program offers the DSELP program (up to $15,000 as a 0% deferred second mortgage) and first mortgage products that include 3% to 5% of the loan amount as assistance. Programs have income and purchase price limits by county and must be paired with an MMP first mortgage through an approved lender.
What credit score do I need to buy a house in Maryland with 3.5 percent down?
An FHA loan requires a minimum 580 credit score to qualify for the 3.5% down payment option. Scores between 500 and 579 may still qualify with 10% down. Many lenders set their own minimums above the FHA floor, so buyers in the 580 to 620 range should compare multiple lenders before committing.
Is it better to put more money down when buying a home in Maryland?
Not automatically. More down means lower monthly payments and no PMI above 20%, but it also depletes the cash reserves you need for repairs, closing costs, and emergencies after closing. For buyers who qualify for low-down-payment programs, keeping reserves on hand often makes more financial sense than waiting years to accumulate a larger down payment while prices continue to rise.
Ready to Talk Through Your Options?
I have helped buyers across Charles, Calvert, and St. Mary’s counties figure out the right down payment strategy for their situation. Sometimes it is VA. Sometimes it is FHA paired with MMP assistance. Sometimes it is conventional with 5% down and solid reserves. Fill out the form below and I will walk you through what actually fits your budget.
Disclaimer: Loan program requirements, income limits, and assistance amounts change frequently and vary by lender. Verify all figures with a licensed mortgage lender before making financial decisions. This post is for informational purposes only and does not constitute financial or legal advice.
Sources
- Maryland Mortgage Program: down payment and settlement expense loan program details
- U.S. Department of Housing and Urban Development: FHA loan requirements and guidelines
- U.S. Department of Veterans Affairs: VA home loan benefit overview
- USDA Rural Development: property eligibility maps and income limits
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