If you're buying your first home in Maryland, you’ve probably run into “facts” that aren’t facts. State-specific rules and programs create confusion that can cost you time and money. Here are the three myths I hear most—and the real story.

Myth #1: "If I Haven't Owned a Home in Maryland for Three Years, I'm a First-Time Buyer Again"

Many people think a three-year gap “resets” first-time status. It doesn’t.
The Reality: Maryland has no reset. If you’ve ever owned a principal residence in Maryland—2 years ago or 20—you’re not a first-time buyer here.
Exception: If your prior Maryland property was never your principal residence (rental, investment, vacation home), you can still qualify as a first-time buyer if the new home will be your primary residence.

Why it matters: First-time status can unlock transfer tax exemptions and special loan options. Getting this wrong can throw off your budget and timeline.

Myth #2: "I Need to Put Down 20% to Buy a Home"

The Reality: You don’t need 20% down to buy in Maryland. Common options include:

• FHA: as low as 3.5% down

• VA: 0% down for eligible buyers

• USDA: 0% down in eligible areas

• Conventional: as low as 3% down for qualified buyers

• Maryland SmartBuy 3.0 and other state assistance

On a $400,000 home, 20% is $80,000; 3.5% (FHA) is $14,000—often the difference between buying now and waiting. PMI note: If you put down less than 20%, you’ll likely pay PMI. On conventional loans it drops off at 20% equity; on FHA, it can drop after 11 years with at least 10% down. Often PMI costs less than renting longer while you save.

Myth #3: "Maryland Assistance Programs Are Only for First-Time Buyers"

The Reality: Maryland supports both first-time and repeat buyers.

• First-time buyer programs: best benefits and some of the lowest rates

• Repeat buyer programs: meaningful help with down payment, closing costs, and rates

Income limits are more generous than many expect. In many counties, a 1–2 person household can qualify up to $151,200, with higher limits for larger families. Check your county and household size before assuming you earn “too much.”

Why These Myths Persist and How to Avoid Them

Rules vary by state and online info gets outdated fast. To get accurate guidance:

1. Work with a local Maryland real estate agent who tracks programs and requirements. There’s a reason why working with a realtor matters.

1. Contact Maryland housing authorities for the latest program details.

1. Speak with local lenders who regularly use Maryland programs.

The Bottom Line

Don't let myths derail your plans. Whether you're watching current trends in the Maryland housing market or deciding if you should rent or buy, accurate, local info wins.

If you're ready to separate fact from fiction and start your Maryland home search with a smart strategy, let's talk. With the right plan, your homebuying goals are absolutely achievable.