One of the most common questions we hear from buyers is also one of the most intimidating:
“How much money should I actually have saved to buy a house in Maryland?”

With rising home prices, interest rate headlines, and constant social media advice, it’s easy to feel like homeownership is out of reach unless you have a massive savings account. The truth? Most buyers need far less saved than they think, especially in Maryland, where grants and assistance programs can significantly reduce upfront costs.

Let’s break it down realistically.

The Three Buckets of Savings Buyers Need

When planning to buy a home in Maryland in 2026, buyers should think in terms of three main categories of savings:

1. Down Payment

This is usually the biggest concern for buyers—but it doesn’t have to be.

Contrary to popular belief, you do not need 20% down to buy a home.

Typical down payment ranges in Maryland:

• 3%–3.5% for FHA loans

• 3%–5% for conventional first-time buyer loans

• 0% down for VA loans (for eligible veterans and active-duty service members)

• 0–3% down when combined with Maryland down payment assistance programs

For example:

• On a $350,000 home, a 3% down payment is $10,500

• With grants or assistance, that number could be significantly lower—or even zero

2. Closing Costs

Closing costs are separate from your down payment and typically include lender fees, title services, escrow setup, and prepaid taxes or insurance.

In Maryland, buyers can generally expect:

• 2%–3% of the purchase price in closing costs

On a $350,000 home, that’s roughly:

• $7,000–$10,500

Here’s the good news:
👉 Closing costs can often be partially or fully covered by seller concessions, especially in a more balanced or buyer-friendly market.

3. Emergency Fund & Moving Cushion

This is the piece buyers often forget—and one of the most important.

Lenders typically want to see:

• 1–3 months of mortgage payments left in savings after closing (called “reserves”)

Beyond lender requirements, buyers should plan for:

• Moving expenses

• Initial repairs or upgrades

• Furniture or appliances

• General peace of mind

A good rule of thumb:

• $5,000–$10,000 set aside after closing, depending on your comfort level

So… How Much Should You Actually Have Saved?

Here’s what realistic savings goals look like for many Maryland buyers in 2026:

Without Assistance Programs

• $20,000–$35,000 total savings for a mid-priced home
  (This includes down payment, closing costs, and reserves)

With Maryland Grant & Assistance Programs

• $5,000–$15,000 total savings in many cases
  (Some buyers can qualify with even less)

Maryland Down Payment & Grant Programs That Can Help

Maryland is one of the most buyer-friendly states when it comes to assistance programs. These programs are designed to help buyers who have steady income but limited savings.

Maryland Mortgage Program (MMP)

This is one of the most commonly used programs in the state and offers:

• Competitive interest rates

• Down payment assistance options

• Available to first-time and repeat buyers

Down Payment Assistance Loans

Many Maryland buyers qualify for:

• Deferred loans (no payments until you sell or refinance)

• Forgivable loans (forgiven after living in the home for a set period)

• Assistance amounts that can cover down payment and/or closing costs

Local County & City Programs

Several counties and cities in Maryland offer additional local grants, including:

• Baltimore City

• Prince George’s County

• Montgomery County

• Howard County

These programs often stack on top of state programs, reducing out-of-pocket costs even further.

What If I Don’t Have Much Saved Yet?

If buying a home in 2026 is your goal, the most important thing you can do right now is start planning—not panicking.

Even buyers with:

• Student loans

• Modest savings

• Single incomes

…are successfully buying homes every day with the right strategy, lender, and guidance.

A few smart steps to take:

• Talk to a lender early to understand real numbers

• Learn which programs you qualify for

• Avoid draining savings unnecessarily

• Create a realistic 6–12 month plan

The Bottom Line

You don’t need to be “rich” to buy a house in Maryland.
You need a plan, the right team, and accurate information.

For many buyers in 2026, homeownership will be achievable with far less money saved than they expected, especially by taking advantage of Maryland’s grants and assistance programs.

If buying a home is on your vision board for the next year or two, the best time to start the conversation is now. The earlier you plan, the more options you’ll have—and the more confident you’ll feel when the right home comes along.

If you want help figuring out your numbers and your options, that’s exactly what we’re here for.