The Maryland MHIC/PSI Exam Process
The complete 4-step Maryland licensing process — understand where you are, what's required at each step, and how the PSI exam fits into your path to getting licensed.
PSI Exam at a Glance
The 4-Step Maryland MHIC Licensing Process
Maryland's licensing process follows a specific sequence. Our exam prep course is Step 2. Understanding where you are in the process ensures maximum value at exactly the right time.
⚠️ Critical: Different from Virginia
Maryland requires you to receive exam approval BEFORE taking the exam (and before taking our exam prep course). This is the opposite of Virginia's sequence. You cannot register with PSI and immediately take the exam—you must submit documentation and get approval first.
Receive Exam Approval
What this step means: Submit documentation to PSI proving you have at least 2+ years of documented home improvement or construction experience. PSI reviews your documentation and approves you to sit for the exam.
How to Get PSI Exam Approval
Contact PSI:
- By phone: 1-800-733-9267
- Online: test-takers.psiexams.com/mdhi
Request: Maryland Home Improvement Contractor (MHIC) application package and Candidate Information Bulletin
Documentation You'll Need to Submit
- W-2s for each year of your 2+ years of experience
- Signed employment letters from contractors (with dates and duties)
- Tax returns if self-employed
- Project photos (10-20 minimum) showing work you've performed
- Written project descriptions and customer references
- Completed PSI application form
Pro Tip: Have all documentation organized and ready BEFORE contacting PSI. Slow document gathering is the biggest cause of delays in this step.
Timeline for Step 1
- Document gathering: 1–2 weeks (get it all before submitting)
- PSI processing: 1–2 weeks after your complete application is submitted
- Total Step 1 time: 2–4 weeks
What You Receive When Approved
PSI sends you confirmation (usually by email or mail) that your experience has been verified and you're eligible to sit for the exam. Keep this approval letter—you'll need it when scheduling your actual exam.
Complete Our MHIC License Exam Prep Course
What this step means: Take our live, in-person, instructor-led exam preparation course. This is where we prepare you to pass the PSI exam.
Why This Step Matters
Even with years of hands-on home improvement experience, contractors often struggle with the PSI exam without focused preparation. The exam tests Maryland-specific laws, business principles, and consumer protection rules—not just construction knowledge.
- Our track record: Nearly 100% first-attempt pass rate
- Our format: 3.5-hour live, in-person session with a licensed instructor
- Your investment: $637 per person
- Strategic timing: Schedule your exam prep for a few days BEFORE your PSI exam (so material stays fresh)
What We Cover
- Maryland contractor law and MHIC regulations (COMAR 09.08)
- Consumer protection and contract requirements
- Business and financial principles tested on the exam
- Question navigation strategy and approach
- Exactly what's tested (no wasted time)
Prerequisites Before Registering for Our Course
You MUST have:
- PSI exam approval (Step 1 complete)
- Your PSI exam scheduled within a few days of the class date
- Bring proof of both when you attend
Course Dates & Registration
View our MHIC exam prep class schedule and register →
Timeline for Step 2
- Course duration: 3.5 hours (one day)
- Scheduling: Schedule your exam for a few days after class
- Total Step 2 time: 1 week (including scheduling your exam)
Pass the Exam
What this step means: Schedule your PSI exam and take the test. You need 70% (39 out of 55 questions correct) to pass.
Scheduling Your PSI Exam
After Step 1 (receiving exam approval): Contact PSI to schedule your actual exam date and time. Testing is at PSI testing centers throughout Maryland, by appointment.
Exam fee: $63 (paid at scheduling or on test day)
Exam Details
- 55 multiple-choice questions
- 120 minutes (2 hours) to complete
- 4 answer choices per question
- 70% passing score (39 correct answers)
- Computer-based testing at a proctored testing center
On Test Day: What to Expect
- Bring a government-issued photo ID (driver's license works fine)
- Arrive 15 minutes early for check-in and security
- This exam is open book. You may bring permitted reference materials only. Phones are not allowed. If needed, calculators can be provided by PSI.
- Testing center staff will provide instructions and administer the exam
- Results provided immediately after completion (you'll know if you passed)
What the Exam Tests
- 40%: Maryland contractor law & regulations (COMAR 09.08)
- 25%: Consumer protection & contract requirements
- 20%: Business & financial principles
- 15%: Project management & construction practices
If You Don't Pass on the First Attempt
- After first failure: 30-day minimum waiting period before retaking
- After second (or any) failure: 60-day minimum waiting period
- Each retake: $63 exam fee + additional study time + lost business revenue
This is why focused exam prep on the first attempt is so valuable. Our nearly 100% pass rate saves you 30–60+ days and avoids the expense of retaking.
Timeline for Step 3
- Test day: 1 day (120 minutes exam + check-in/security)
- Total Step 3 time: 1–2 weeks (includes scheduling the exam)
Submit Your Application to the Commission
What this step means: After passing the PSI exam, submit your complete application to the Maryland Home Improvement Commission (MHIC). This is the final step to receiving your license.
What You Submit to MHIC
- Completed MHIC application form
- PSI exam passing confirmation (provided immediately after passing)
- Proof of $500,000 general liability insurance (required continuously)
- Guaranty Fund assessment ($100), required of every applicant regardless of solvency
- If you don't meet the Commission's financial solvency guidelines: an indemnitor, or a surety bond ($30,000 or $100,000)
- Financial solvency documentation (total assets, total liabilities, net worth)
- Personal identification and background information
- Application fee: $281.25, plus a $22.50 application processing fee
Important: Insurance Requirement
Maryland requires $500,000 general liability insurance. This must be in place before your license is finalized. If your insurance lapses during the application process, notify MHIC immediately (at least 10 days before).
Where to Submit
Submit your complete application to the Maryland Home Improvement Commission:
Website: labor.maryland.gov/license/mhic/
Phone: 410-230-6231 (for questions)
Commission Review & Approval
- Review time: 2–3 weeks for the Commission to evaluate your application
- License delivery: You'll receive your paper license by mail within 10 days of approval
- License validity: 2 years (renewal required every 2 years)
You're Licensed
Once the Commission approves, you're officially licensed to perform home improvement work in Maryland. Your license authorizes you to bid on and perform residential home improvement projects (1–3 dwelling units) anywhere in Maryland.
Timeline for Step 4
- Application submission: 1–2 weeks after passing exam
- Commission review: 2–3 weeks
- License delivery: Within 10 days of approval
- Total Step 4 time: 3–4 weeks
Total Timeline: 6–10 Weeks From Start to Licensed
Assumes everything moves smoothly and you pass the exam on the first attempt.
What the PSI Exam Actually Tests
Understanding the exam content helps you understand why focused prep is so valuable.
Maryland Contractor Law & Regulations (40%)
The exam heavily emphasizes Maryland-specific contractor law:
- MHIC licensing requirements and scope
- Prohibited acts and violations
- License renewal requirements
- Disciplinary actions
- Guaranty Fund and consumer protection
- Insurance requirements ($500,000 GL minimum)
Consumer Protection & Contracts (25%)
Maryland has strict contract and consumer protection rules:
- Written contract requirements (what must be included)
- Deposit limits (max 1/3 of contract price)
- Payment terms and schedules
- Homeowner cancellation rights (3-day rescission)
- Door-to-Door Sales Act compliance
- Dispute resolution and mediation
Business & Financial Principles (20%)
Running a compliant business requires understanding:
- Financial solvency requirements
- Bonding and insurance
- Pricing, estimating, and cost management
- Business structure and liability
- Record-keeping and documentation
- Tax and employment basics
Project Management & Construction (15%)
Practical construction management knowledge:
- Project scheduling and timeline management
- Scope management and change orders
- Quality assurance and workmanship
- Permits and inspections
- Safety on job sites
- Subcontractor management
🎯 The Critical Insight: Where Most Contractors Struggle
Most contractors have hands-on construction experience and assume that's what the exam tests. Wrong. The exam is 65% legal/regulatory and business knowledge—only 15% construction. That's why even experienced contractors need focused exam prep. They study the wrong material if they self-study without guidance.
Maryland MHIC Process vs. Virginia Contractor Licensing
Critical differences if you're licensed in both states or pursuing both licenses.
Maryland (MHIC)
- 4-step process (documented above)
- Step 1: Submit documentation → receive exam approval
- Step 2: Take our exam prep course
- Step 3: Pass PSI exam
- Step 4: Submit application to Commission
- No reciprocity with any other state
- Must pass MD exam even if licensed in VA
Virginia (DPOR)
- Different 6-step sequence
- Complete pre-license course FIRST
- Take Business/Law exam
- Apply to DPOR
- Get DPOR approval
- Schedule specialty exam
- Pass specialty exam
🚫 No Reciprocity Between States
Maryland does not recognize Virginia contractor licenses. If you're licensed in Virginia and want to work in Maryland:
- Go through the full Maryland MHIC 4-step process (documented above)
- Pass the Maryland PSI exam (your Virginia license doesn't waive it)
- Submit application to Maryland MHIC
Frequently Asked Questions
Answers to common questions about the PSI exam and the 4-step process.
No. You must receive exam approval from PSI (Step 1) before you can schedule or sit for the exam. Trying to register without approval will be rejected. PSI approval verifies you have at least 2 years of documented home improvement or construction experience.
Typical processing time is 1–2 weeks after PSI receives your complete application. If documentation is missing or unclear, it will take longer. Have everything organized and ready before submitting to avoid delays.
No. The PSI exam must be taken at an approved testing center. Testing centers have security procedures and proctored environments. You cannot take the MHIC exam remotely or online.
Register for our course only after you have received PSI exam approval (Step 1 complete) and have your PSI exam scheduled within a few days of the class date. Bring proof of both when you attend. Schedule the exam prep class for a few days BEFORE your PSI exam so material is fresh.
Yes. The MHIC exam is 55 multiple-choice questions. Each question has 4 answer options. There are no short-answer, essay, or written-response questions.
No phones, notes, or reference materials other than the permitted reference materials are allowed in the testing center. The testing environment is fully proctored.
Yes. Most testing centers provide your pass/fail status and score immediately after you complete the exam. You don't have to wait for results by mail. This immediate feedback lets you know right away whether to proceed to Step 4 (submitting your license application).
After you pass the PSI exam (Step 3), you proceed to Step 4: Submit your complete application to the Maryland Home Improvement Commission. Include your exam passing confirmation, proof of $500K insurance, your financial solvency documentation (or a bond/indemnitor if you don't meet the Commission's guidelines), your mandatory Guaranty Fund assessment, and your application fee.
Exam-related costs: PSI exam fee $63, our exam prep course $637. Application costs: MHIC application fee $281.25, plus a $22.50 processing fee, plus the mandatory $100 Guaranty Fund assessment. Total licensing cost: approximately $1,100, plus your ongoing $500,000 general liability insurance premium. If you don't meet the Commission's financial solvency guidelines, you'll also need an indemnitor or a surety bond ($30,000 or $100,000 — premium cost varies by provider).
Ready to Get Licensed?
Now you understand the complete 4-step Maryland MHIC licensing process and where the PSI exam fits in. Our exam prep course is Step 2—the focused preparation that helps contractors pass on their first attempt with a nearly 100% success rate.
When you've completed Step 1 (received PSI approval) and scheduled your exam, we're ready to help you pass.
View Our MHIC Class Schedule Call (703) 475-0314Related Resources
Learn more about Maryland MHIC licensing.
Maryland MHIC Licensing Overview
Full overview of the licensing path and what you need to know.
Maryland MHIC Licensing FAQs
25+ questions and answers about Maryland contractor licensing.