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New Construction loans in Maryland

Quick answer

Buying a newly built home in Maryland uses a standard FHA (3.5% down), conventional (3%–5%), VA or USDA (0%) purchase loan; building your own uses a construction-to-permanent loan. On a $397,700 home, 3.5% down is about $13,920, and builder incentives are capped by each program.

By Purchase Mortgage Loan Editorial Team Checked against official sources per our editorial standardsLast updated

New Construction loan snapshot for Maryland

ItemEstimate
Minimum down payment0%–20% (by loan program)
Minimum credit score580–680 (by loan program)
Typical MD home value$397,700
3.5% down on typical home$13,920
20% down on typical home$79,540
Avg. effective property tax1.00%/yr (~$332/mo)
Income for typical home (31% rule)$126,000

Rate assumption: 7.18% (Freddie Mac PMMS 30-year fixed average, week of November 5, 2026). Change it in the payment calculator.

Which Maryland programs pair with New Construction loans?

  • 1st Time Advantage: Fixed-rate loans for first-time buyers with down payment assistance options.
  • Partner Match: Matching assistance funds from participating employers, counties and builders.

Details and current limits: Maryland Mortgage Program (DHCD).

Buying a new home from a builder vs. building your own: what's the difference?

Most buyers of new homes buy from a production or spec builder: the builder owns the land, builds the house and sells it to you. You finance it with a normal purchase mortgage that closes when the home is complete and has a certificate of occupancy. If the home isn't finished yet, the builder's contract usually sets a deposit and an estimated completion date, and your rate lock has to cover the wait.

Building your own (a custom home on land you own or are buying) works differently. Because there's no finished house to secure a regular mortgage, lenders use a construction loan that pays the builder in stages (draws) as work is inspected, then either converts to a permanent mortgage or is paid off by one.

Construction-to-permanent (one-time close) vs. two-time close

One-time close reduces paperwork and protects you if rates or your finances change during the build. Two-time close can offer more lender choice and lets you shop the permanent mortgage after the home is done.

FeatureOne-time closeTwo-time close
ClosingsOne — construction and mortgage togetherTwo — construction loan, then a separate mortgage
Closing costsOne setTwo sets
RatePermanent rate usually set at the first closingMortgage rate set when you close the second loan
Re-qualifyingNo second approvalYou must qualify again after the build
ProgramsFHA, VA, USDA and conventional (Fannie Mae/Freddie Mac) versions exist; fewer lenders offer themWidely available; construction loan is often interest-only

New Construction loans in Maryland cities

New Construction in BaltimoreNew Construction in ColumbiaNew Construction in GermantownNew Construction in WaldorfNew Construction in Silver SpringNew Construction in FrederickNew Construction in Ellicott CityNew Construction in Glen BurnieNew Construction in GaithersburgNew Construction in BethesdaNew Construction in RockvilleNew Construction in DundalkNew Construction in SevernNew Construction in BowieNew Construction in Bel Air SouthNew Construction in TowsonNew Construction in Aspen HillNew Construction in WheatonNew Construction in North BethesdaNew Construction in PotomacNew Construction in OdentonNew Construction in HagerstownNew Construction in CatonsvilleNew Construction in AnnapolisNew Construction in EssexNew Construction in WoodlawnNew Construction in Severna ParkNew Construction in ClintonNew Construction in OlneyNew Construction in RandallstownNew Construction in Owings MillsNew Construction in ChillumNew Construction in College ParkNew Construction in PikesvilleNew Construction in Montgomery VillageNew Construction in SalisburyNew Construction in PasadenaNew Construction in Milford MillNew Construction in Middle RiverNew Construction in Bel Air NorthNew Construction in EldersburgNew Construction in ParkvilleNew Construction in CroftonNew Construction in LaurelNew Construction in ClarksburgNew Construction in Perry HallNew Construction in CarneyNew Construction in ReisterstownNew Construction in South LaurelNew Construction in LochearnNew Construction in IlchesterNew Construction in ElkridgeNew Construction in FairlandNew Construction in Ballenger CreekNew Construction in Fort WashingtonNew Construction in North LaurelNew Construction in Edgewood

Frequently asked questions

Yes. New Construction loans are available statewide in Maryland through approved lenders, subject to county loan limits where they apply.

Often yes. Maryland Mortgage Program (DHCD) and local programs frequently pair assistance with FHA, conventional, VA or USDA first mortgages. Eligibility depends on income, price and program rules.

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Figures on this page are estimates for educational purposes only and are not a loan offer or commitment to lend. Rates, loan limits, fees and assistance programs change frequently and vary by lender, location and borrower profile. Confirm current terms with a licensed loan officer.