How Much Cash Do You Need to Close on a Baltimore City Home With a Physician's Loan?

Before you fall for a rowhome, let's talk about cash. A Physician's Loan is a great tool, but zero down does not mean zero cash. Baltimore City charges its own transfer and recordation taxes on top of the state's, and on a mid-priced home they add up fast. Keith and I would rather you see that number now than on your settlement statement. The good news is that Maryland has a first-time buyer rule that many out-of-state physicians qualify for without realizing it. If you are coming to Johns Hopkins or UMMC, here is how I would estimate your cash.

A Buyer's Transfer and Recordation Taxes on a $350,000 Home

I am using $350,000 because that was the median sale price in Federal Hill, close to UMMC, over the last 12 months (Bright MLS data compiled by KJAX Group; full numbers are on our Baltimore City market page). Maryland presumes these taxes are shared equally between buyer and seller, so these are the buyer's half of Fiscal 2027 city and state rates.

This is an illustration. Your settlement company's figures are the ones that count.

The First-Time Maryland Buyer Rule Physicians Miss

Maryland defines a first-time Maryland home buyer as someone who has never owned residential property in Maryland that was their principal residence. A physician who owned a home in Ohio can still qualify.

For a qualifying buyer who will live in the home, the state transfer tax drops to 0.25% and is paid by the seller, and the recordation and local transfer taxes also fall to the seller unless the contract expressly says otherwise, which can take your share to zero. You must sign a statement under oath, and co-buyers generally each need to qualify.

What Else Belongs in Your Cash Estimate

• Earnest money: due when you write the offer, usually credited at settlement.
• Inspection and appraisal: generally paid before settlement.
• Prepaid taxes and insurance: your Loan Estimate lists these.
• Lender and title charges: compare Loan Estimates line by line.
• Reserves: some programs require money left in the bank after closing.
• Ground rent: 27% of city rowhomes and townhomes sold with it (same Bright MLS data). Ask how the current period is handled at settlement.

Do Not Forget the Monthly Tax Bill

The State Department of Assessments and Taxation lists Baltimore City's 2026 to 2027 rate at $2.248 per $100 of assessed value plus the state's $0.112, or $2.36 total. On a $350,000 assessment, that is about $8,260 a year, roughly $688 a month, before credits. The city also describes a lower effective homeowner rate and planned cuts, so confirm your actual figure. Apply for your own Homestead credit after settlement, since the seller's does not transfer.

For neighborhoods and commute times, see our Johns Hopkins and UMMC relocation guide. I am a Realtor, not your attorney or tax advisor, so please confirm how these rules apply to you.

Frequently Asked Questions

Does a Physician's Loan cover closing costs?

It can reduce or remove the down payment, but settlement costs and prepaid items still have to be paid by you or through credits your program allows.

Who pays transfer and recordation taxes in Baltimore City?

Maryland presumes these taxes are shared equally between buyer and seller unless the agreement or the law says otherwise. Qualifying first-time Maryland home buyers are treated differently.

Am I a first-time Maryland home buyer if I owned a home in another state?

You may be. The test is whether you have ever owned residential property in Maryland as your principal residence. You must live in the home and sign a statement under oath.

How much are property taxes on a Baltimore City home?

The published 2026 to 2027 rate totals $2.36 per $100 of assessed value, including the state portion, before credits. Your bill depends on the assessment and any credits.