FHA vs VA vs conventional for Maryland buyers.
Three loan tracks, each with different down payments, limits, and ideal buyers. Here's the 2026 Maryland-specific breakdown so you can match the loan product to your situation before you shop.
In this guide
1. Side-by-side comparison
| Conventional | FHA | VA | |
|---|---|---|---|
| Min down payment | 3% (first-time) / 5% standard | 3.5% (580+ credit) | $0 (zero-down) |
| Min credit score | 620 typical | 580 (3.5% down) / 500 (10% down) | Lender-set, often 580–620 |
| Mortgage insurance | PMI until 20% equity; removable | MIP for the life of loan (most cases) | None; one-time VA funding fee |
| Eligibility | Anyone meeting credit/income | Anyone; primary residence | Qualifying military service |
| 2026 baseline loan limit (MD) | $832,750 standard / $1,249,125 high-cost [1] | $524,500 floor (11 MD counties) up to $1,209,750 ceiling (5 MD counties) [2] | Uses conforming limit for $0-down [1] |
2. 2026 Maryland loan limits by program
Conventional / conforming
FHFA's 2026 one-unit conforming loan limit is $832,750 nationwide baseline, up $26,250 from 2025 [1]. Maryland has two tiers depending on county classification:
- Standard counties: $832,750.
- High-cost counties (DC-adjacent): $1,249,125 [1].
Loans above the applicable limit are jumbo loans, which carry different (often stricter) underwriting and sometimes different pricing.
FHA
FHA loan limits in Maryland vary widely by county [2]:
- 11 Maryland counties fall at the FHA "floor" of $524,500.
- 5 Maryland counties sit at the FHA "ceiling" of $1,209,750 (the DC-adjacent high-cost counties).
- The remaining 8 counties have limits in between.
If you're shopping near a county border, the loan-limit difference can be material — confirm your county's specific 2026 FHA limit on HUD's FHA Mortgage Limits page.
VA
VA loans no longer have a hard loan limit for first-time use of the entitlement. For buyers with an existing VA loan or partial entitlement, VA uses the conforming loan limit to calculate the maximum loan you can take with $0 down [1]. Above that, a down payment is required.
3. Conventional financing
Conventional loans (Fannie Mae and Freddie Mac eligible) are the default for buyers with good credit and at least 5% down. Two programs to know:
- HomeReady (Fannie Mae) and Home Possible (Freddie Mac): 3% down for first-time buyers meeting income limits.
- Standard conventional: 5% down for primary residence; 10–20% for second homes and investment.
Private Mortgage Insurance (PMI) is required when you put less than 20% down. The cost is risk-based (LTV + credit), runs ~0.3% to 1.5% of the loan annually, and can be removed once you reach 20% equity by appreciation or principal pay-down. This removability is the main reason conventional usually beats FHA over time for buyers who can qualify for both.
4. FHA financing
FHA loans are insured by the Federal Housing Administration and serve buyers with lower credit scores or smaller down payments:
- 3.5% down with a 580+ FICO; 10% down with 500–579 FICO.
- More lenient debt-to-income ratios than conventional.
- Property must be a primary residence; appraisal includes minimum property standards (safety, livability).
Mortgage Insurance Premium (MIP) is the catch. FHA charges an upfront MIP (1.75% of the loan, financed in) plus an annual MIP that — for most FHA loans originated today with less than 10% down — continues for the life of the loan. Refinancing into a conventional loan once you reach 20% equity is the standard exit path.
5. VA financing
VA loans are guaranteed by the Department of Veterans Affairs for eligible service members, veterans, and certain surviving spouses. The advantages are substantial:
- $0 down for qualifying buyers with full entitlement.
- No private mortgage insurance.
- Competitive interest rates.
- Limits on what closing costs the buyer can pay (the rest fall on seller or lender).
The trade-off is a one-time VA funding fee (1.25%–3.3% depending on down payment and first-or-subsequent use), which can be financed into the loan or waived for disabled veterans. Property must meet VA Minimum Property Requirements — generally similar to FHA standards.
Not sure which loan fits your situation?
I'll route you to two or three Maryland lenders that quote all three loan types so you can compare apples-to-apples.
Get Lender Recommendations →6. Which makes sense when
| If you... | Look first at |
|---|---|
| Have 5%+ down and 680+ credit | Conventional (better long-term cost; removable PMI) |
| Are a first-time buyer with 3% down and 720+ credit | HomeReady / Home Possible conventional |
| Have credit in the 580–660 range | FHA (easier to qualify; refinance later) |
| Have minimal down payment + lower DTI tolerance | FHA |
| Qualify for VA benefits | VA — almost always the best math |
| Are buying above the conforming limit | Jumbo or VA with down payment |
| Qualify for the Maryland Mortgage Program | Layer MMP on top of FHA/VA/conventional (see MMP guide) |
Sources
- "FHFA Announces Conforming Loan Limit Values for 2026" — Federal Housing Finance Agency — https://www.fhfa.gov/news/news-release/fhfa-announces-conforming-loan-limit-values-for-2026 (accessed 2026-06-15)
- "2026 FHA Loan Limits in Maryland" — LendingTree — https://www.lendingtree.com/home/fha/fha-loan-limits-in-maryland/ (accessed 2026-06-15)
- "2026 Loan Limits: DC, Maryland, & Virginia Guide" — Downs Mortgage Group — https://downsmortgagegroup.com/loan-limits-dc-md-va/ (accessed 2026-06-15)
- HUD FHA Mortgage Limits — https://entp.hud.gov/idapp/html/hicostlook.cfm (accessed 2026-06-15)
- "Loan Limits" — Fannie Mae Single-Family — https://singlefamily.fanniemae.com/originating-underwriting/loan-limits (accessed 2026-06-15)
This guide is general information about loan programs and is not lending, tax, or financial advice. Loan eligibility, rates, and limits change frequently; verify current figures and program details with a licensed mortgage lender and HUD/FHFA/VA before relying on them. Evan Kundrat is a Maryland-licensed real estate salesperson (Lic. #5003434) at Keller Williams Flagship of Maryland (Designated Broker: Barry Hess, Lic. #517943). Equal Housing Opportunity.