You Can Have Owned a House and Still Be a First-Time Maryland Home Buyer
Program and regulatory figures verified October 9, 2026. Details change; confirm your scenario with us.
This is the highest-value sentence in Maryland real property tax law for a physician moving into the state, and it turns on two words.
The statute, verbatim
Md. Code, Tax-Property §13-203(b)(1):
"'first–time Maryland home buyer' means an individual who has never owned in the State residential real property that has been the individual's principal residence."
★★ Read it again slowly. The exclusion is ownership in the State of Maryland. Not ownership in general. Not ownership anywhere in the United States.
★★ Who this helps, in practice
The physician this page exists for looks like this. Residency in Philadelphia. Bought a small house there in the second year of fellowship. Sold it. Signed an attending contract at a Maryland health system. Assumes, reasonably, that having owned a home makes them a repeat buyer.
On the plain wording of §13-203(b)(1), the Pennsylvania house is outside the test. The individual has never owned in the State.
★ We are not telling you that you qualify. We are telling you that the sentence most people assume disqualifies you says something narrower than they think, and that it is worth putting in front of your title company before closing rather than after.
What it is worth
| Standard | First-time Maryland home buyer | |
|---|---|---|
| State transfer tax | 0.5% of the consideration | ★ 0.25% |
| Who pays | as the parties agree | ★★ "shall be paid entirely by the seller" |
§13-203(b)(3) does both things in one sentence: it sets the lower rate for a sale of improved residential real property to a first-time Maryland home buyer who will occupy the property as a principal residence, "and the transfer tax shall be paid entirely by the seller."
★ That second clause is directed by statute. It is not a negotiating convention that a strong seller's market erodes.
★ The three conditions attached
- Occupancy. The buyer must occupy the property as a principal residence. An investment purchase is outside the subsection.
- ★ Every grantee. §13-203(b)(2) says the subsection does not apply unless each grantee is a first-time Maryland home buyer, or is a co-maker or guarantor who will not occupy the residence. A spouse who previously owned a Maryland principal residence changes the answer.
- ★ Sworn evidence. §13-203(b)(4) requires each grantee or their agent to provide a statement signed under oath. This is a formal declaration, not a box on a form.
★ Where our lane ends
We are a mortgage lender. We quote the statute because it changes a physician's cash position at closing, and because the misconception is so common.
We do not determine whether you qualify, and no lender does. That determination runs through your title company, your attorney, and a statement you sign under oath. Take the statute to them. If the answer is yes, it is worth real money; if it is no, you want to know before you are at the table.
★ And what this does not cover
Maryland county transfer taxes and recordation taxes sit outside §13-203. They vary by jurisdiction and are often the larger line on a settlement statement.
★★ They are also often larger than the state charge. County transfer tax runs from 0% to 1.5% for FY2026, and Prince George's charges 1.4%: nearly three times the standard state rate. A buyer who reads §13-203 and concludes transfer taxes are handled has the wrong picture in that county. The county rates, by jurisdiction.
Mike Certo, NMLS #260555. (480) 296-6513 · mcerto@cfmtg.com.
Frequently asked questions
What is the definition of a first-time Maryland home buyer?
Md. Code, Tax-Property section 13-203(b)(1) defines it as an individual who has never owned in the State residential real property that has been the individual's principal residence. The test is ownership within Maryland, so property owned in another state falls outside it.I owned a home in another state. Can I still get the Maryland first-time buyer rate?
On the statute's plain wording the out-of-state property does not disqualify you, because section 13-203(b)(1) tests ownership in the State of Maryland. The determination itself runs through your title company and attorney and requires a statement signed under oath, so raise it before closing.Who pays the transfer tax for a first-time Maryland home buyer?
The seller. Section 13-203(b)(3) sets the rate at 0.25 percent for a sale of improved residential real property to a first-time Maryland home buyer occupying it as a principal residence and states that the transfer tax shall be paid entirely by the seller.What if only one buyer is a first-time Maryland home buyer?
Section 13-203(b)(2) provides that the subsection does not apply unless each grantee is a first-time Maryland home buyer, or is a co-maker or guarantor who will not occupy the residence. A co-buyer who previously owned a Maryland principal residence changes the outcome.What proof does Maryland require for the first-time buyer rate?
Section 13-203(b)(4) requires each grantee, or an agent of each grantee, to provide a statement signed under oath. That is a formal sworn declaration handled through the closing, not a lender determination.Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content about physician mortgage financing, not a loan commitment and not legal, tax or financial advice. The Maryland Loan Repayment Programs are administered by the Maryland Department of Health, not by Cornerstone; their terms, award amounts and application cycles are set by that department and change. Md. Code, Tax-Property §13-203 is quoted so you can take it to your own attorney and title company; whether a particular buyer qualifies as a first-time Maryland home buyer is established by a statement signed under oath, not by a lender. Figures here carry the date we verified them against primary sources. Physician-loan program terms, eligible degrees and overlays are set by the lender and change. All loans are subject to borrower, property and program qualification.