Under Maryland law, which of the following is NOT a condition that must be met for a buyer to qualify for the reduced state transfer tax rate of 0.25%?
Correct Answer
A) The buyer must obtain financing through a Maryland-approved lender or mortgage program.
Obtaining financing through a Maryland-approved lender or mortgage program is NOT a requirement for the reduced 0.25% state transfer tax rate. Under Md. Code Ann., Tax-Prop. § 13-203(b), the qualifying conditions are that the buyer must be a first-time homebuyer (generally defined as not having owned a principal residence in the preceding seven years) AND must be purchasing the property as a principal residence. The source of financing is irrelevant to this tax exemption.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A comparison of the major mortgage loan types—conventional, FHA, VA, and USDA—covering their eligibility requirements, down payment amounts, mortgage insurance rules, and best use cases.
Predatory lending refers to unfair, deceptive, or abusive lending practices that impose unjustified terms on borrowers, often targeting vulnerable populations. It includes practices like excessive fees, inflated appraisals, and unnecessary refinancing.
RESPA is a federal law that requires lenders to provide borrowers with information about settlement costs, prohibits kickbacks and referral fees, and limits escrow account deposits. It applies to federally related mortgage loans.
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