In some states, having a great and functional cooling system in your home is necessary, not a luxury. This is because of the extreme temperatures in those areas.

The ability to tailor the air in your home at will to suit your needs can not be overstated. However, repairing yours or getting a new one might fill you with dread because it can be pretty expensive.

When you’re ready to replace your old HVAC system, it’s easy to get overwhelmed by all your options. The good news is that the field of heating and air-conditioning has changed a lot in the last few years. 

Gone are the days when you had to choose between buying a new unit or fixing up your old one. Today, there are many financing options available for both new and replacement systems.

You can now easily get home improvement loan rates that are quite affordable. This makes it easier to get the system you need without going into debt. 

Keep reading for our breakdown of some of the best financing options for your new HVAC system in 2022.

What are HVAC Loans?

HVAC loans are specifically designed to finance the purchase and installation of heating, ventilation, and air conditioning systems. You can also use them to finance the costs of HVAC repairs.

HVAC loans are available from various home improvement company lenders, including banks, credit unions, and online lenders. The terms of the loans vary depending on the lender. 

However, most loans have terms of five years or less. In addition, HVAC loans typically have fixed interest rates, meaning that the interest rate will not change over the life of the loan.

Typically, the owner of a home is responsible for the initial cost of an HVAC system. However, some homeowners may be able to finance this expense by taking out a loan against the property’s value. 

5 Top HVAC Financing Options

When it comes to financing a new HVAC system or even repairing a faulty one, you have several options. 

1. Personal Loans

Let’s say you live in Florida and need to take a loan to finance your HVAC upgrade or repairs. One option you have is to apply for a personal loan in the form of a home improvement loan. 

This type of loan is meant specifically for upgrades or repairs in your home. In the example mentioned above, home improvement loans in Florida wil be your best bet.

You can either apply for the loan online or organize it face-to-face. These loans depend on your credit score and income, so they come with different benefits and requirements.

The options are secured and unsecured personal loans. You should apply for an unsecured loan if you have a good credit score and a stable monthly income. 

On the other hand, a secured loan is the best bet for those with a poor credit score, but you will have to put down collateral for this.

There are several places you can get personal loans. You can apply for a loan from your credit union or a peer-to-peer lending site. Make sure you read the fine print and understand the terms thoroughly first.  

2. Home Equity Lines of Credit (HELOC)

Home equity lines of credit (HELOCs) are a way to borrow money against the equity you have in your home. The loan is repaid over up to 20 years, and the interest rate is generally variable. This means it goes up and down, depending on the market. 

HELOCs are a popular way to finance a new HVAC system. The interest rate on a home equity loan is usually lower than other ways to get a renovation loan. This makes it a good option for financing a large purchase.

However, you might lose your house if you can’t repay your loan. Also, with HELOC loans, the application, approval, and borrowing process is slower than most. 

3. Federal Grants for Low-Income Households

The Low Income Home Energy Assistance Program (LIHEAP)  is a grant program that provides funding for low-income households. The purpose of this grant is to improve their energy efficiency. The program provides funding for a wide range of improvements, including lighting, heating and cooling, and appliances. 

Depending on your state, you might be able to repair your old or broken HVAC system. Always check the website for your state government website for specific options. Because this is a grant from the government, it is free.

4. Financing through an HVAC company

Many companies that install and repair HVAC systems offer financing to customers who need a new one. While it’s most common for new construction, there are also some financing options for existing HVAC systems. 

Some of these options may have better terms than the average home improvement store, or contractor would be willing to offer. However, the interest rate will still be higher than a bank. 

Some of the best home remodel loan options for your new HVAC system will come from financing through an HVAC contractor. It makes sense that a contractor would be willing to offer a low rate on a large, expensive project like a new HVAC system.

5. 0% interest Credit Card

Let’s say you’ve just gotten a new credit card and need to meet the minimum spending requirements for a bonus. Or maybe the credit card comes with an introductory 0% annual percentage rate (APR).

In those two cases, a loan for a new HVAC system is a smart idea in those two cases. The huge purchase will help you to get your credit card bonus and exempt you from paying interest during that time. Ensure you pay off the balance before the APR ends.

Factors to Consider Before Taking an HVAC Loan 

Keep a few things in mind when looking at financing your HVAC system. When comparing financing options to get the best deals, these are things to look out for:

  • Loan Amount – Before choosing an HVAC financing option, consider the loan amount you need. If you need a large, one-time loan, then a personal loan might be your best bet. This is because you might be hard-pressed to find a personal loan to cover a few hundred dollars. 

Also, ensure to include the cost of any installation or upgrades in your calculations since the interest on these will be added to your monthly payments.

  • Annual Percentage Rate (APR) and Fees – This is crucial in deciding which option to take. This includes the loan’s interest rate and the lender’s fees. Any loan with the lowest rate is the cheapest one and your best bet.
  • Terms of Repayment – Depending on which loan option you choose, you might have a shorter or longer time to repay your loan. Keep in mind that a long time will have lower monthly payments. However, in this case, you will be paying more interest overall. 
  • Funding Time – Some loan companies will take just minutes to approve your loan, so be on the lookout for those. Also, some companies will fund your account on the same day or the next business day after your approval.


Extreme heat or cold conditions can make your home very uncomfortable to live in. If you need a home improvement loan, there are plenty of financing options to get you up and running with a new system. You can either apply for a personal loan or use several other means. 

Keep in mind that you may be able to get a 0% interest loan or even a home equity line of credit to help you make the transition. Ensure you fully understand the terms and conditions to stay free from debt.

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