6 HVAC Loans: Finance your new HVAC system
Personal loans are one quick way to get the funding for an HVAC system. Compare HVAC loans and other financing options.
Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.
Feeling comfortable in your home depends on the ability to heat and cool it, which typically involves a working HVAC — or heating, ventilation and air conditioning — system.
Americans spent about $5,300 on average adding and replacing HVAC systems in 2021, according to the U.S. Census Bureau’s American Housing Survey. Replacing an existing system — including removal, disposal and replacement — can cost up to $10,000, according to HomeAdvisor.
A personal loan can be a fast way to finance an HVAC system. Many lenders, including those listed here, can fund a loan within one or two days of approval. Compare loan offers and financing alternatives to find the least expensive option.
- 35+ personal loans reviewed and rated by our team of experts.
- 20+ years of combined experience covering personal loans and financial topics.
- Objective, comprehensive star rating system assessing 20+ categories and 70+ data points.
- Governed by NerdWallet's strict guidelines for editorial integrity.
- 35+ personal loans reviewed and rated by our team of experts.
- 20+ years of combined experience covering personal loans and financial topics.
- Objective, comprehensive star rating system assessing 20+ categories and 70+ data points.
- Governed by NerdWallet's strict guidelines for editorial integrity.
Limited-Time Offer
Get a 0.50% discount on your next loan from SoFi, NerdWallet's 2024 Best Personal Loan winner. Offer expires 4/30/24. Click on "View details" for offer terms*.
SoFi Personal Loan
HVAC Loans: Finance your new HVAC system
Lender ▾ ▾ | NerdWallet Rating ▾ ▾ | Est. APR ▾ ▾ | Loan amount ▾ ▾ | Min. credit score ▾ ▾ | Learn more |
|---|---|---|---|---|---|
 Discover® Personal Loans Top 3 most visited 🏆 Visit Lender on Discover's website Check Rate on NerdWallet | 5.0 /5Fast funding | 7.99-24.99% | $2,500-$40,000 | 660 | Top 3 most visited 🏆 Visit Lender on Discover's website Check Rate on NerdWallet |
 Upgrade Top 3 most visited 🏆 Visit Lender on Upgrade's website Check Rate on NerdWallet | 5.0 /5Rate discount | 8.49-35.99% | $1,000-$50,000 | 560 | Top 3 most visited 🏆 Visit Lender on Upgrade's website Check Rate on NerdWallet |
5.0 /5 | 8.99-18.00% | $500-$50,000 | 660 | Check Rate on NerdWallet | |
4.5 /5Secured loans Wide range of loan amounts | 8.99-35.99% | $2,000-$50,000 | 600 | Visit Lender on Best Egg's website Check Rate on NerdWallet | |
 Upstart Top 3 most visited 🏆 Visit Lender on Upstart's website Check Rate on NerdWallet | 4.5 /5Fast funding Flexible payments | 7.80-35.99% | $1,000-$50,000 | None | Top 3 most visited 🏆 Visit Lender on Upstart's website Check Rate on NerdWallet |
4.5 /5Fast funding Flexible payments | 7.99-35.99% | $2,000-$36,500 | 660 | Check Rate on NerdWallet |
Our pick for
HVAC loans
Discover® Personal Loans
7.99-24.99%
$2,500-$40,000
660
First Tech Credit Union Personal Loan
8.99-18.00%
$500-$50,000
660
What are HVAC loans?
HVAC loans are unsecured personal loans that you use to purchase or replace an HVAC system. Upon approval, you receive the loan in a lump sum and repay it in fixed monthly installments over a period of about two to seven years.
Qualifying for a personal loan primarily depends on your creditworthiness and finances. Qualified borrowers with high credit scores, stable income and little other debt receive the lowest rates and largest loan amounts.
Annual percentage rates on personal loans typically range from 6% to 36%, and loan amounts are $1,000 to $100,000. Many online lenders allow you to pre-qualify and see your personal loan rate and term before formally applying. Pre-qualifying doesn't affect your credit score.
» MORE: Pre-qualify on NerdWallet
HVAC loan example
For an excellent-credit borrower, a $7,000 loan with a two-year repayment term and 11.2% APR would require monthly payments of $327 and cost $7,846 including interest, according to NerdWallet’s home improvement loan calculator.
HVAC loan considerations
As with any home improvement purchase, it's good to compare multiple financing options. Here are things to consider about personal loans.
Loan amount: Personal loans are best for large, one-time purchases. You may not find a personal loan small enough to cover a repair that costs a few hundred dollars. Unlike with a line of credit, you borrow the funds all at once, so try to have a solid cost estimate before you sign a loan agreement.
APR and fees: APR, which is the loan's interest rate plus any fees the lender charges, is the best way to compare total costs of different loans. The loan with the lowest APR is the cheapest. Some lenders charge origination fees from 1% to 10% of the loan amount and deduct the charge from your loan before depositing the money into your account.
Repayment term: A longer repayment term on a personal loan means lower monthly payments, but you’ll pay more overall interest. Factor monthly payments into your budget to determine what amount you can manage over the loan's term.
Funding time: Pre-qualifying for a personal loan with an online lender can take minutes, and some lenders will fund a loan the same day you’re approved or the following business day.
HVAC financing alternatives
Emergency fund: While not technically a financing option, your emergency fund is made for expenses like a new HVAC system. Especially if temperatures outside are extreme, a broken AC or heating unit constitutes an emergency.
HVAC company financing: Some companies that sell and install HVAC systems also offer financing through third-party lenders, like Greensky or Ally. Rates and terms vary across contractors. Rolling your installation and payment plan together can be a convenient option if it's also the most affordable one.
0% interest credit card: Consumers with good or excellent credit (690 or higher scores) may qualify for a credit card with a zero-interest promotional period. Be sure to pay off the balance during the interest-free term — usually 15 to 21 months — to avoid paying the card’s regular interest rate.
Government help: You may qualify for an FHA Title 1 loan, which can be used to improve your home’s “basic livability and utility,” according to the Department of Housing and Urban Development. Another option is to refinance your existing mortgage with an FHA 203(k) loan. These programs each have their own requirements and may prolong your installation’s timeline, but they could save you money. If you have low income, you may be eligible for assistance through the Low Income Home Energy Assistance Program (LIHEAP).
Last updated on December 15, 2023
Methodology
NerdWallet’s review process evaluates and rates personal loan products from more than 35 technology companies and financial institutions. We collect over 50 data points from each lender and cross-check company websites, earnings reports and other public documents to confirm product details. We may also go through a lender’s pre-qualification flow and follow up with company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer consumer-friendly features, including: soft credit checks to pre-qualify, competitive interest rates and no fees, transparency of rates and terms, flexible payment options, fast funding times, accessible customer service, reporting of payments to credit bureaus and financial education. Our ratings award fewer points to lenders with practices that may make a loan difficult to repay on time, such as charging high annual percentage rates (above 36%), underwriting that does not adequately assess consumers’ ability to repay and lack of credit-building help. We also consider regulatory actions filed by agencies like the Consumer Financial Protection Bureau. We weigh these factors based on our assessment of which are the most important to consumers and how meaningfully they impact consumers’ experiences.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodologies for personal loans and our editorial guidelines.
NerdWallet's HVAC Loans: Finance your new HVAC system
- Discover® Personal Loans: Best for HVAC loans
- Upgrade: Best for HVAC loans
- Best Egg: Best for HVAC loans
- First Tech Credit Union Personal Loan: Best for HVAC loans
- Upstart: Best for HVAC loans
- LendingPoint: Best for HVAC loans
Frequently asked questions
- Do HVAC companies offer financing?
Some companies that sell and install HVAC systems offer financing through a third-party lender. Rates and terms vary across contractors. Compare an HVAC company’s financing option with alternatives, like a personal loan or 0% APR credit card, to find the least expensive one.
- What credit score do you need to finance an HVAC system?
The credit score you need for HVAC financing depends on the lender. In general, borrowers with good or excellent credit (690 or higher) are likely to qualify for financing through an HVAC company, a personal loan or a 0% APR credit card. Some lenders offer personal loans for bad credit (629 or lower FICO), but consumers with low credit scores combined with low income and high debt are unlikely to qualify. Lenders also consider information like your income and debt when deciding if you qualify.
