Maryland Department of Housing and
Community Development

Net Zero Loan Program

​​​​​​​​​The Net Zero Loan Program is not accepting applications at this time. Please check back for additional updates.​

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​​​​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.​

NetZero 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

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 and demonstrate the ability to complete the project. ​

Application Procedures

The Net Zero Loan Program is not accepting applications at this time. Please check back for additional updates.​

Construction Loan Details

  • Available Interest Rates:
    • HERS Score 0-15 (True Net Zero): 2%
    • HERS Score 16-35 (Net Zero Ready): 3%
    • HERS Score 36-50 (Energy Efficient Home): 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):
    • Up to 90%
  • 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 loan period.

These are the rates and terms as of July 22, 2019 and are subject to change.