How to Finance Your New HVAC System

HVAC Financing

Originally published on May 29, 2018

HVAC Financing Tips for Homeowners

HVAC financing can be challenging for anyone, especially a new homeowner. The cost to install a new HVAC system can vary based on:

  • The type of equipment being installed (e.g. single-stage, two-stage, multi-stage, variable speed, geothermal);
  • The existing equipment (e.g. ductwork, outdoor piping);
  • And the type of install (e.g. new install vs. retrofit, ease of installation).

For most people, HVAC financing is a large expense, and paying out of pocket isn’t feasible. But there are plenty of options to finance the HVAC system that is right for you.

Home Equity

Borrowing against the equity in your home can often be a good way to finance home improvements. This option has less interest and is tax-deductible, but there are risks. Falling behind on your payment could cost you not only your HVAC system but your home.

Private Lenders

You can also borrow from private lenders, such as banks or credit unions. The interest rates and max amounts available to borrow will vary, but many banks have low-interest rates for these types of loans.

Loan Programs

There are loan programs, such as the Federal Housing Administration’s (FHA) PowerSaver Loan Program, that allow you to borrow up to $7,500 without putting up your home as collateral. However, you must have home equity to participate.

Credit Card Companies

Talk to your credit card company about charging this large of a purchase to your card. Know that there is a possibility of higher interest rates.

Utility Companies

Utility companies can also help by charging monthly payments for your new HVAC system on your electric bill. They often provide low-interest rates if you choose energy-efficient systems.

Need More Information?

DSIRE is an excellent source to learn more about policies and incentives that support energy-efficient systems and renewable energy. To find information that is applicable to your location, visit

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4 thoughts on “How to Finance Your New HVAC System

  1. The hvac co. I am planning on using charged 200 extra for using their credit bank (synchrony). They said it cost them more. Does that sound correct or do they really get a kickback.

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