Net Zero homes are energy efficient homes that produce as much or more energy than they will use. The Maryland Department of Housing and Community Development supports the construction of Net Zero homes throughout Maryland.
Net Zero home features may include advanced energy efficient design and technology, renewable energy resources, and a Home Energy Rating System (HERS) rating of 50 or lower.
Net Zero Financing Available
- Low interest construction loan (available to builders, developers or owners building in Maryland)
- Loan enhancements for private construction loan
Eligible Projects
- New construction or deep energy retrofits of an existing home.
- Must reach low energy status with HERS (Home Energy Rating System) rating of 50 or lower.
- Properly zoned for residential use.
- Must be constructed or rehabilitated in accordance with the applicable Local, State and Federal building codes.
Eligible Applicants
Maryland homeowners, builders, developers, or investors who meet the following criteria:
- Qualified to do business in Maryland.
- Have the legal capacity and all necessary authorization to incur the obligation of the loan.
- Demonstrate credit worthiness and repayment ability acceptable to the department.
- Demonstrate the ability to complete the project.
Application
Application Status: Open
Application Period Opens: April 16, 2025
Application Period Closes: We are accepting applications until available funds are committed.
Application Procedures
- Complete the
Energy Efficient Homes Construction Loan (Net Zero) Program paper application form. - Review the
list of required documentation. The Department may ask for additional documents, if needed. - Submit the completed application by email to:
MultifamilyEnergy.dhcd@maryland.gov and make sure to CC:
Thomas.Walz@maryland.gov.
Construction Loan Details
The following table shows the available interest rates:
| HERS Score | Market rate | More than 50% are at or below 60% of the Area Median Income (AMI) |
|---|
| 0-15 | 3% | 2% |
| 16-35 | 4% | 3% |
| 36-50 | 5% | 4% |
-
Closing Fees:
- Administration Fee: 1% of total loan
- Appraisal Fee: $290 (subject to change)
- Title Fees will be decided by and due to Title Company
- Additional service fees may apply based on loan terms
-
Loan to Value (LTV):
-
Loan Enhancement:
- The Net Zero program can provide loan enhancements to applicants interested in securing a loan from a private lender.
- Terms of the construction loan include a typical 12 Month construction period and 12 month loan repayment period for projects that are for sale.
These are the rates and terms as of April 16, 2025 and are subject to change.
Program Contact: Thomas Walz
Email:
Thomas.Walz@maryland.gov
