DHCD Net Zero Loan Program

July 31, 2025

Summary

Under the Net Zero residential construction program, the Maryland Department of Housing and Community Development offers low interest construction loans for builders, developers and homeowners to construct or rehabilitate residential buildings to energy efficient standards.

Net Zero home features may include advanced energy efficient design and technology and renewable energy resources. Proceeds may be used for acquisition of a project, construction and development costs, and closing costs. The program requires applicants to obtain a Home Energy Rating System (HERS) score of 50 or lower.

Financing is available through low interest construction loans to builders, developers or owners, or as loan enhancements for private construction loans. The loan to value requirement is up to 90%.

Eligible projects include new construction and deep energy retrofits of existing homes. All applicants must be properly zoned for residential use and constructed in accordance with all applicable Local, State and Federal building codes. Applicants must be qualified to do business in Maryland and have the legal capacity and all necessary authorization to incur the obligation of the loan. Applicants must demonstrate credit worthiness and repayment ability acceptable to the Department, as well as the ability to complete the project.

The goal of this program is to support the adoption of Net Zero construction techniques in Maryland.

Program Overview

Implementing Sector:	State
Category:	Financial Incentive
State:	Maryland
Incentive Type:	Loan Program
Web Site:	https://dhcd.maryland.gov/Energy-Home-Repair/Pages/Homeowner-Loans/NetZero.aspx
Administrator:	Maryland Department of Housing and Community Development
Start Date:	Application opened April 16, 2025
Eligible Renewable/Other Technologies:	Comprehensive Measures/Whole Building Other EE
Maximum Loan:	Restricted by total funding and program interest
Loan Term:	Secured loans for 12 months with variable rates base on the HERS score achieved. HERS Score 0-15: 3% market rate and 2% where more than 50% are at or below the Area Median Income (AMI) HERS Score 16-35: 4% or 3% where more than 50% are at or below 60% AMI HERS Score 36-50: 5% or 4% where more than 50% are at or below 60% AMI Fees include an administrative fee of 1% of loan value, and appraisal fee, and title fees subject to the title company.

Contact

Name:	Thomas Walz
Address:
Email:	Thomas.Walz@maryland.gov

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.