Montgomery County Mortgage Hub: $1,249,125 Limits, Progressive Recordation Tax and HOC Loans
Updated October 2026
A $1 million mortgage on a Bethesda house is not automatically jumbo financing. Montgomery County’s 2026 one-unit conforming ceiling is $1,249,125, creating a high-balance financing tier above the national baseline of $832,750. For buyers comparing Rockville, Gaithersburg and Bethesda, the loan amount, closing taxes and assistance eligibility deserve separate calculations.
Match the mortgage to the purchase
The conforming limit applies to the mortgage balance, not the sales price. A purchase above $1,249,125 can still use conforming financing when the down payment brings the loan within the county ceiling. High-balance pricing and underwriting can differ from standard conforming terms.
| One-unit loan amount | Financing category |
|---|---|
| Up to $832,750 | Baseline conforming |
| Above $832,750 through $1,249,125 | High-balance conforming |
| Above $1,249,125 | Jumbo |
Confirm the property’s county and unit count through FHFA Loan Limits. Then compare down-payment scenarios using the monthly payment calculator, including taxes, insurance and association dues rather than principal and interest alone.
Montgomery closing taxes need a tiered estimate
Maryland transactions can involve three separate charges: state transfer tax, county transfer tax and county recordation tax. Montgomery’s progressive recordation structure makes a single flat percentage an unreliable shortcut. Applicable brackets, transaction type and exemptions affect the calculation.
The standard Maryland state transfer tax is 0.50%. For qualifying certified Maryland first-time homebuyers, it is reduced to 0.25%, paid entirely by the seller. That treatment does not automatically eliminate county charges.
Use the closing cost estimator to organize the budget, then obtain an itemized settlement calculation. Separate transfer and recordation charges from prepaid interest, initial escrow deposits and title expenses. Contract allocations matter when determining the buyer’s actual cash requirement.
Compare HOC and statewide assistance
Montgomery buyers should investigate Housing Opportunities Commission mortgage assistance alongside Maryland Mortgage Program options. HOC availability, participating lenders, income restrictions and purchase-price limits need to match the household and property.
Through the Maryland Department of Housing and Community Development, compare MMP 1st Time Advantage Direct, 6000 and percentage-based assistance options. Ask whether assistance is repayable, deferred or subject to occupancy requirements.
After closing, apply for the Homestead Tax Credit through SDAT. Maryland’s triennial reassessment phases qualifying assessment increases over three years; the credit separately limits eligible taxable assessment growth. Skipjack & Stairs helps organize these financing, settlement and ownership costs into one Montgomery County purchase plan.
Compare Current Mortgage Rates
Compare current APRs, points, fees, and estimated monthly payments from participating lenders below.
Loan Program Comparison: 2026 Benchmarks
Montgomery County Mortgage Hub: $1,249,125 Limits, Progressive Recordation Tax and HOC Loans — Choose a mortgage by comparing eligibility, upfront cash and total monthly costs, not the advertised rate alone. Conventional, FHA, VA and USDA serve different borrowers. Confirm county limits, taxes, insurance and lender requirements before comparing personalized Loan Estimates for your household.
Historical 2025 one-unit comparison: conforming $806,500; FHA floor $524,225. County and unit-count limits can differ.
| Loan program | Down payment / equity | 2026 one-unit baseline | Costs and page-specific comparison |
|---|---|---|---|
| Conventional | 3%–5% subject to eligibility | $832,750 | PMI generally below 20% down |
| FHA | 3.5% at 580+; 10% at 500–579 | $541,287 floor | 1.75% upfront MIP; 0.55% annual for >95% LTV, base loan ≤$726,200, term >15 years |
| VA | 0% for eligible borrowers | No VA limit with full entitlement | No monthly PMI; funding fee unless exempt |
| USDA | 0% for eligible borrowers | Income, address and repayment eligibility | Guarantee and annual fees; confirm current schedule |
| Jumbo | Lender-specific cash and reserves | Above applicable conforming limit | Lender-specific pricing and insurance |
| Home Equity / Refinance | Equity and underwriting dependent | Property and lender dependent | Compare closing costs, term and break-even |
Sources: FHFA limits; HUD FHA limits.
Editorial Methodology & Primary Sources
Verification date: Not recorded; check the primary source and lender timestamp before relying on an estimate.
Rate comparisons use participating lender feeds, not a whole-market survey or guaranteed offers. Freddie Mac PMMS is a market benchmark, not a personalized quote. Calculator models rely on published regulatory formulas and disclosed assumptions rather than fabricated first-person loan testing.
Monthly principal and interest use the amortization formula P × r / (1 − (1 + r)−n), where r is the monthly note rate and n is the number of payments; at zero interest use P / n. PITI adds monthly property taxes and homeowners insurance; PMI is separate. APR includes applicable finance charges under Regulation Z and is not the note rate used for payments. Compare lender Loan Estimates for actual APR and fees.
- Consumer Financial Protection Bureau (CFPB) — Loan Estimates, APR and borrower disclosures; Regulation Z.
- U.S. Department of Housing and Urban Development (HUD / FHA) — FHA program guidance.
- U.S. Department of Veterans Affairs (VA) — VA loan eligibility and benefits.
- Freddie Mac Primary Mortgage Market Survey (PMMS) — published rate benchmarks.
- U.S. Census state tax collections — state property tax benchmarks; confirm parcel-specific assessments and exemptions with the state revenue department and local assessor.
The payment snapshot uses illustrative annual taxes of 1% of home price, $1,200 insurance and 0.5% PMI below 20% down, not verified local quotes. Other calculators disclose their inputs and assumptions. Published guidance and lender feeds may change independently; confirm current program rules, taxes and offers before a decision.