Is HVAC Financing Right for You?

If you’re looking to get a new HVAC system for your home – or make a major repair on the one you have – you know that these systems aren’t cheap.

Rather than paying all at once, you can rely on HVAC financing to break up your purchase into manageable monthly payments. Find out more about getting a loan for your HVAC upgrade.

What Are HVAC Loans?

HVAC loans are similar to other types of loan, including your auto loan or home mortgage. You can finance a big purchase like your HVAC system into smaller monthly payments, rather than coming up with thousands of dollars at once.

This is ideal if you’re working within a budget and smaller payments would be more affordable, but you typically need fair or good credit to get a loan with a competitive interest rate.

Find out more your financing options for your HVAC system:

HVAC Company Financing

Reputable HVAC companies like Service Champions offer financing for homeowners making a heating and cooling purchase. We offer financial advisors to evaluate your financing options and come up with a personalized payment plan that fits in your budget, so you can get your HVAC system when you need it.


If you want to buy your heating and cooling system outright, you can, but it’s worth checking out your financing options to see what’s available.

Bank Financing

Banks are usually a go-to for loans of all kinds, including home improvement purchases like appliances. If you work with the same bank that provided your mortgage or auto loan, it may be more comfortable and easier to get approved.


Hvac Financing

Bank loans are not without their downsides, however. You may have a higher interest rate and a more challenging application approval process, even if you worked with the bank before. It also takes time to get approved, which can be difficult if you need a new system in the middle of the heating or cooling season.

Credit Union Financing

Working with a credit union offers low-interest loans for things like cars or home improvement costs. You can often get a lower interest rate than other lenders, and it’s better if you have less-than-perfect credit. Credit unions take a lot into consideration when approving loans, including on-time payment history, employment, and more.

You have to be a member of a credit union ahead of time, however. Otherwise, you will need to find a local credit union, apply for membership, and wait until you’re approved. Then, you have to go through the loan application process, which is more challenging as a new member.

Government FHA Title 1 Loans

Homeowners have the option of government Federal Housing Association (FHA) Title 1 loans to help finance home improvements, such as energy-efficient HVAC system upgrades. You may be eligible for up to $7,500 to finance your HVAC system. Learn more at the FHA website.

What About Credit Cards?

If you have a personal credit card for large purchases or unexpected expenses, this can be a good option to pay for your HVAC system. Once you make the purchase, you can pay it off with lower monthly payments.


Credit cards have a lot of cons, though. Your interest rate can lead to paying much more than the original purchase price, especially if it takes a long time to pay it off, and you won’t have any available credit until it’s paid.

If you want to use a credit card for your HVAC purchase, consider promotions that include low interest or zero Annual Percentage Rate (APR). You can pay off your purchase over time without accruing interest during the promotional period, but it’s important to pay attention to when the interest goes into effect.

Key Points to Consider When Taking Out a Loan

It’s always good to shop around for deals on HVAC financing. Here are some things to compare:


Your APR is the interest rate that’s included in your loan over a year period. APR differs depending on the terms of your loan, so make sure that you’re evaluating your total purchase cost to make sure you’re not paying too much with interest included.

Monthly Repayments

Monthly payments may make a large purchase easier to pay for, but it’s not much of a help if the payments are more than you can afford. Make sure the payment is manageable with your other bills, with some left over. Otherwise, you may have missed payments that add fees and interest to your total cost.


Utility companies may have rebates and incentives for upgrading your appliances, including HVAC systems. Look for deals at the Database of State Incentives for Renewables & Efficiency. You may also be eligible for rebates or credits with the Inflation Reduction Act (IRA).

Hvac Purchase Discounts

Lender Fees

On top of interest, lenders may have fees and other charges that are added to the loan. It’s vital to pay attention to the fine print when you’re comparing lenders to understand the total cost of your loan and which offer is most competitive.

The Benefits of HVAC Financing

If you work with a reputable HVAC company like Service Champions, you have plenty of options for HVAC financing. Ready to shop for your new HVAC system? Contact us at Service Champions.