7 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.
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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 $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.
HVAC Loans: Finance Your New HVAC System
Min. credit score
Discover® Personal Loans
First Tech Credit Union Personal Loan
Best for HVAC loans
Our pick for
What are HVAC loans?
HVAC loans are unsecured personal loans that you use for the purchase or replacement of 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 estimate on the HVAC system's cost 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 FICO 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 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 December 8, 2022
NerdWallet’s review process evaluates and rates personal loan products from more than 35 financial institutions. We collect over 45 data points from each lender, interview company representatives and compare the lender with others that seek the same customer or offer a similar personal loan product. 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. 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.
This methodology applies only to lenders that cap interest rates at 36%, the maximum rate most financial experts and consumer advocates agree is the acceptable limit for a loan to be affordable. 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
- LendingClub: Best for HVAC loans
- LightStream: Best for HVAC loans
- 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
- OneMain Financial : 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.