5 Personal Loans to Finance HVAC Systems

HVAC financing options include fast-funding personal loans. Compare lenders and alternatives to find the cheapest option.

Annie MillerberndFebruary 22, 2021
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Feeling comfortable in your home depends on the ability to heat and cool it, which typically involves an HVAC — or heating, ventilation and air conditioning — system.

Americans spent almost $5,000 on average adding and replacing HVAC systems in 2019, 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.

Personal loans are one of the fastest ways to finance an HVAC system. Most loans, including those included in our list of HVAC loans, are funded within one or two days of approval. Compare loan offers and financing alternatives to find the most affordable option for you.

What are HVAC loans?

HVAC loans are unsecured personal loans that you use toward the purchase or replacement of an HVAC system. Upon approval, you receive the loan amount in a lump sum and repay it in fixed monthly installments over a period of two to seven years.

Qualifying for a personal loan primarily depends on your creditworthiness. 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 can be between $1,000 and $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.

HVAC loan example

For an excellent-credit borrower, a $7,000 loan with a two-year repayment term and 11.8% APR would require monthly payments of $329 and cost $896 in total 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.

APR and fees: APR, which includes the loan's interest rate and fees, 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 of between 1% and 6% of the loan amount and deduct the charge from your loan proceeds. A $7,000 loan with a 4% origination fee, for example, means you'll end up with $6,720.

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 an 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 needs like new HVAC systems. 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. 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 FICO scores) may qualify for a credit card with a zero-interest promotional period. Be sure you pay off the balance during the interest-free term — usually 12 to 18 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 make your home “basically more livable and useful,” according to the Department of Housing and Urban Development. Another option is refinancing 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.

Last updated on February 22, 2021


NerdWallet's ratings for personal loans award points to lenders that offer consumer-friendly features, including soft credit checks, no fees, transparency of loan rates and terms, flexible payment options, accessible customer service, reporting of payments to credit bureaus and financial education. We also consider the number of complaints filed with agencies like the Consumer Financial Protection Bureau. This methodology applies only to lenders that cap interest rates at 36%, the maximum rate financial experts and consumer advocates agree is the acceptable limit for a loan to be affordable. NerdWallet does not receive compensation of any sort for our reviews.

To recap our selections...

NerdWallet's Personal Loans to Finance HVAC Systems