DHCD Net Zero Loan Program

Maryland's Net Zero Loan Program offers low-interest construction loans to help you build or deeply retrofit a home to energy-efficient standards with a Home Energy Rating System (HERS) score of 50 or lower. You can borrow up to 90% of the project value for acquisition, construction, and closing costs, with interest rates ranging from 2–5% depending on your income level and HERS score. To apply, submit a paper application form with required documentation to the Maryland Department of Housing and Community Development by email; the application period opened April 16, 2025, and accepts applications until funds are committed.

This program supports your customers' Net Zero projects by offering low-interest construction financing (3–5% market rates) or loan enhancements for private construction loans, with favorable terms including up to 90% loan-to-value ratio and a typical 12-month construction period. Your projects must achieve HERS scores of 50 or lower through advanced energy-efficient design and renewable energy integration, comply with all applicable building codes, and be properly zoned for residential use. Applicants must demonstrate credit worthiness and repayment ability, and you should direct customers to contact the program at [email protected] to discuss project eligibility and financing options.

The Net Zero Loan Program provides low-interest construction financing with tiered rates (2–5%) adjusted by HERS score (0–50) and borrower income relative to Area Median Income (AMI), up to 90% loan-to-value. Funding supports new construction and deep energy retrofits meeting HERS 50 or lower, generating loans with typical 12-month construction and 12-month repayment periods; administrative costs include a 1% origination fee, $290 appraisal fee, and title costs. The program targets Maryland homeowners, builders, developers, and investors with demonstrated credit worthiness and project completion capacity, aiming to expand Net Zero construction adoption statewide through accessible financing that prioritizes lower-income borrowers with reduced rates.