HVAC Financing

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How to Finance Your HVAC System

When the winter winds become stronger or the heat of the summer becomes more intense, we tend to rely on our HVAC systems to keep us comfortable. Our families depend on having a well-working HVAC system during times of extreme weather, so we must maintain our systems or replace them when they are beginning to wear.

Unfortunately, HVAC systems can be incredibly expensive, depending on the size of your house and the particular system you choose. In fact, replacing your system could cost up to $13,000 which is money that many people don’t have laying around. Luckily, there are plenty of financing options available to homeowners to ensure that your home will be cooled and heated during the extremes of either season.

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What is HVAC financing?

HVAC financing is quite simply a method of paying for a new HVAC system in installments rather than all at once. Many homeowners don’t have enough spare cash to pay for a full replacement system, so plenty of manufacturers, installers, lenders, and other companies offer ways to finance the purchase.

An HVAC system can vary depending on where you live. If you live somewhere that doesn't need air conditioning, it can often solely consist of a furnace. Others would consist of a furnace and air conditioning unit, or a combination of a few other things. All of the options will make the price vary widely, but either way, it is possible to finance.

Which lenders offer HVAC financing?

Lightstream Personal Loans


Funding: Borrow $5,000 - $100,000
Minimum Credit Score: 660
APR: 2.49% - 19.99%
Funding turnaround: as soon as same business day

LightStream offers up to $100K on personal loans as soon as same business day (the most out of most lenders!)


Funding: Borrow $2,000 - $35,000
Minimum Credit Score: 550
APR: 9.95% - 35.99% APR
Funding turnaround: Within 24 hours

Avant offers super fast funding and is a great personal loan option for individuals with fair to good credit scores.
Best Egg Personal Loan

Best Egg

Funding: Borrow $2,000 - $50,000
Minimum Credit Score: 600
APR: 4.99% - 35.99%
Funding turnaround: 1-3 business days

Borrowers with fair to good credit can obtain personal loans at competitive APR rates with Best Egg.
Discover Personal Loans Review


Funding: Borrow $2,500 - $35,000
Minimum Credit Score: 660
APR: 5.99% - 24.99%
Funding turnaround: within 24 hours

Borrowers can get funded as fast as next business day with Discover personal loans.
Axos Bank Loan Review


Funding: Borrow $10,000 - $50,000
Minimum Credit Score: 700
APR: 6.79% - 17.99%
Funding turnaround: within 24 hours

Individuals with good to excellent credit can get funds as fast as next business day with AXOS Bank personal loans.

How does HVAC financing work?

HVAC financing works differently depending on where you decide to get your financing.

Generally, there are three options for financing your HVAC system.

  • Through the HVAC manufacturer
  • Through the HVAC installation company
  • Personal loan through a 3rd party lender

The process for financing varies depending on which method you choose. For example, choosing to open a personal loan will require an application to be filled out, often a credit check to be run, and then you will be presented with terms to accept.

Depending on the lender you may be offered an interest-free period, a grace period where no payments are due, or various other benefits. Going forward you’ll need to make monthly payments to ensure you don’t default on your loan.

Can HVAC systems be financed?

Yes, HVAC systems can be financed.

The most common method of financing an HVAC system is with a personal loan through a financial institution. Many Americans find themselves financing HVAC systems today due to the high overall cost and low-interest rates that are currently being offered.

Options to finance an HVAC system

While there are many options for financing an HVAC system, some may be better than others.

  • Personal Loan - offered through lenders such as Discover, Lightstream, and others. These loans can be used for various home expenses and often offer lower interest rates and better terms than other options.
  • Home Equity Loan - A home equity loan is borrowing funds against the value of your home. These can be risky as they can result in foreclosure if too much is borrowed and you are unable to pay the loan off.
  • Credit Card - If your credit limit is high enough, you can often pay the entire sum on your card. The downside is most cards have high-interest rates (often in the 20% range) which can result in large interest payments.
  • Direct through HVAC company - Although not all HVAC manufacturers offer financing, it can be a good option if you buy the system directly from them. Their financing is often run through a 3rd party lender, so you may not get better rates than you would if you applied with the lender directly.

Pros and cons of HVAC financing

Like everything in life, it’s important to know the positives and negatives of a decision. Here are the pros and cons of financing a new HVAC system.


  • Avoid a large upfront cost - spread the payments over a longer period
  • Energy Savings - your new unit will run more efficiently, saving you money on your power bill
  • Avoid Costly Repairs - HVAC units require more repairs the older they get, and a new unit will be able to run for a long time without breaking


  • Potentially not needed - if you have a newer HVAC unit, it may make more sense to repair than it would to replace
  • Interest - taking out a loan or financing results in interest, which will be added to the original cost of the HVAC system

Example of an HVAC loan

Many different lenders offer personal loans. These are loans that can be used for numerous things such as weddings, debt consolidation, and in our case, home remodeling.

Discover is a popular lender that offers personal loans to homeowners which can be used for purchasing a new HVAC system.

At Discover, you can receive a loan of up to $35,000 for a wide variety of expenses, though this number is much higher than most people will need for an HVAC system.

Discover has no origination fees, meaning the only thing you will pay is your monthly payment on your loan. The interest rates are fixed and will vary from 5.99% to 24.99% depending on your financial situation.

Discover offers repayment terms of anywhere from 36 to 84 months, giving borrowers flexibility in their payments, and offering the chance at a much lower monthly payment.

Types of HVAC systems that can be financed

With such a wide variety of HVAC systems out there, it may leave you confused as to which system works for you, and whether it can be financed. Here are some of the most common types of HVAC systems that can be financed.

Heating and cooling split systems

These are the most common HVAC systems offered today. These systems are great for climates in which both heating and cooling are needed annually. The way the systems work is by having two separate units - one for heating, and one for cooling.

The cooling system is located outside and is the typical “box” air conditioning system you often see on the outside of homes and buildings. The heater, which could be a furnace, a boiler, or another system - is located inside the house and provides heating using either electricity or gas.

Hybrid split systems

These systems are nearly the same as the heating and cooling split system with one major difference. Homeowners like these systems because they can often result in a lower power bill than typical split systems.

These systems offer the homeowner the choice of altering between eclectic and gas, which can help them choose whichever power method is cheaper at the time, saving them money.

Duct free systems (Mini-splits)

Often installed in smaller residences, or individual rooms within a residence, a mini-split is a great method for controlling the temperature in individual rooms.

The mini-split is mounted on the interior wall, while the condenser for the system is mounted somewhere outside. While this does require a hole to be drilled in the wall and a system permanently mounted on the wall, it is usually a quick installation and provides great temperature control per room.

Packaged heating and air conditioning systems

Often the least popular, this type of system tends to be used in warmer climates because the heater is usually electric, which does not work great in very cold climates.

These are often placed on the interior of the house and can be done if there isn’t room on the outside of the building for a split unit.

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Reasons for replacing old HVAC systems

Although replacing an old HVAC system may seem expensive, it is an investment that will be worth it in the long run. Some of the most common reasons for replacing an aging HVAC system include:

HVAC system is over 10 years old

If your HVAC system is over 10 years old, it’s time to start thinking about a replacement. Systems are generally meant to last 10-15 years, and once they get older they begin to get less efficient, which could end up costing you significant money on your power bill.

Higher energy bills than usual

If your power bill has gone up an abnormally large amount, there is usually one culprit - your HVAC system. Whether it has broken or has just gotten older and more efficient, the HVAC system is the largest user of power in your home and will cause a jump in your bill when something is wrong.

Repair costs more than replacement

Often, older HVAC units may require costly repairs. Financially it doesn't make sense if a repair costs more than an entirely new unit. Not only will a new unit last longer, but it will also work more effectively and run more efficiently.

Your home is warm or cold

If the system cannot keep your home warm in the winter or cool during the summer, you likely need a major repair or replacement. Once you get your home back into a comfortable temperature, you’ll wish you did it earlier!

How much does a new HVAC system cost?

New HVAC system costs vary widely. The cost can depend on where you live, what type of system you require, the cost of installation, and many other factors.

In the United States, a new HVAC system can range from between $5,000 - $10,000. The national average cost is currently $7,000.

Of course, these costs can be lower or higher, especially if you have a large home and require specific types of heating and cooling. The labor costs of installation typically range from $500 - $2,500.

How much does it cost to repair an HVAC system?

As with installations, HVAC repair costs also vary widely. You can often have a minor repair that won’t cost much, but there are major repairs that can result in a higher cost than a replacement. Here are some basic repair costs.

  • Small repairs such as breakers or thermostats range from $150 - $290.
  • Larger repairs such as refrigerant leaks or evaporator coils can cost from $200 - $1,500.
  • Most AC repairs range from $125 - $459.
  • Most furnace repairs range from $125 - $355.

Of course, these are estimates and you should contact your local HVAC company for a quote.

How long do HVAC systems last?

Most HVAC systems last anywhere from 15 - 25 years. This is just a general estimate, and the number varies widely. Depending on the environment you live in, how much you use the system, the quality of the installation and equipment, and more - the life of your system may be shorter or longer.

A gas furnace typically lasts 20-30 years, while an air conditioning unit will last you roughly 15-20. Be sure to regularly maintain your unit to ensure that you get the longest lifespan possible.

What is the best way to finance an HVAC system?

While there isn't necessarily one single best way to finance an HVAC system, the most popular method today is via personal loans.

Personal loans can be used for home repairs, vacations, debt restructuring, and much more, making them a common method of paying for a new HVAC system.

Most lenders offer good terms for those that have a good credit score and a decent income, making it worth it to take out a loan rather than pay for the entire cost upfront.

There are other methods that we listed previously, but there are more downsides with going down those routes when compared to a personal loan.

What credit score do you need to finance an HVAC system?

Most lenders require what is called an “excellent” credit score to receive financing. This is typically from a 690 FICO score and above.

While this isn’t a hard rule, it does tend to be true across lenders. Some lenders will accept borrowers with “bad” credit (below 630 FICO) but those loans will come with higher interest and less than ideal terms.

Do HVAC companies offer financing?

Many HVAC companies offer financing. Large and well-known companies such as Trane and Carrier offer financing through their company to those who cannot afford the total upfront cost of the system.

To receive financing through an HVAC company, you will need to purchase your system directly through a dealer. From here, you can apply for the financing and you will be presented with the terms.

Note that most of the financing offered by these companies is run through other lenders such as large banks. Often the large banks will not offer rates that are competitive with other lenders, so be sure to compare the rates offered with those you can find for other personal loans.

Should you finance an HVAC system?

Unless you can pay for the entire cost of an HVAC system and still have plenty of money left over as an emergency fund, financing an HVAC system is a good idea and perhaps your only option.

When you need a new HVAC system, it’s usually something you can’t live without. Living without heat in the winter or AC during the summer may prevent you from even using your own home. The rates offered today are much lower than they have been historically, allowing borrowers to purchase a new HVAC system without placing themselves in a bad place financially.

How can I qualify for HVAC system financing?

Qualifying for HVAC system financing is very similar to qualifying for any other loan such as student loans, mortgages, and car loans.

To apply, you will often need:

  • A job and income (as determined by the lender)
  • A decent credit score (as determined by the lender)
  • Be a minimum age (often 18)

Each lender has its own requirements and depending on your income, credit score, and other financial history, the terms of the loans you are offered could vary widely.

Compare HVAC loan rates from multiple lenders

When looking for an HVAC loan, it’s important to cover all of your bases to make sure you are receiving the best terms possible. Some possible options for financing are below.


  • Trane
  • Carrier
  • Lennox
  • Goodman
  • York
  • Ruud

HVAC financing lenders

There are many more options available online and directly through manufacturers, so be sure you compare available rates and quotes before opening a new loan.

Lender Interest Rate Loan Amount
Lightstream 4.49%-20.49% $5,000-$100,000
Marcus 6.99%-19.99% $3,500-$40,000
Discover 5.99%-24.99% $2,500-$35,000
Upgrade 5.94%-35.47% $1,000-$50,000
LendingClub 7.04%-35.89% $1,000-$40,000

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