Is HVAC Financing Right for You?

If you’re planning to upgrade your HVAC system, or you’re dealing with an unexpected repair, it may be difficult to come up with the cash. Though HVAC systems offer energy savings, that doesn’t help with the upfront costs.

Fortunately, HVAC financing is an option to help you get your new system with payments that are manageable. Find out more about HVAC financing.

What Are HVAC Loans?

An HVAC loan works similarly to other loans, such as a home or auto loan. You can finance a large purchase by paying in monthly installments, rather than having to come up with all the money at once. Typically, the payments are more comfortable with your budget.

Taking out a loan is a good option if you’re strapped for cash and you need a new HVAC system, but your ability to secure a loan depends on your credit score. The higher your credit score, the better your interest rate will be.

Find out more about your options for HVAC financing:

HVAC Company Financing

One of the most convenient options for an HVAC loan is through your HVAC company. Many companies offer financing for HAVC systems, including ASI Heating and Air. You can work with our financial advisors to discover your loan options and get a competitive financing deal.

Based on your credit score, you can get a personalized payment plan with installment payments you can afford. Even if you want to pay for your HVAC system at once, it’s good to check into any promotional offers or deals for financing.

Bank Financing

Many people head to the bank for loans if they have a big purchase. It’s often comfortable, especially if you already work with the bank for your mortgage or car loan.

There are downsides to working with a bank, however, such as:

  • Higher interest rates
  • Long approval wait times
  • A tough application process

Credit Union Financing

Similar to banks, credit unions are a popular option for loans, but there are many additional advantages to working with a credit union. These loans usually have better rates, saving you money over the cost of your loan. The approval process is often easier for existing members as well, since the process includes your entire credit history beyond your credit score.

The key is that you have to be a credit union member already. If you’re not, it takes some time to find local credit unions and go through the application process to become a member.

Government FHA Title 1 Loans

A government Federal Housing Association (FHA) Title 1 loan is a good option for financing a home upgrade like an HVAC system. You don’t need collateral, such as your home or vehicle, and you can apply for up to $7,500. If this sounds like a good choice for you, find out more at the FHA website.

What About Credit Cards?

Many people rely on credit cards to finance large purchases or unexpected expenses. You can put the entire cost on a credit card then pay the balance off with monthly payments, making it easier to pay for a big expense all at once.

The problem with credit cards is that you can end up in a debt cycle with high interest rates. If the interest rate is high, you will end up paying a lot more for your purchase once interest is included.

If you want to use a credit card, consider cards that have promotional offers for a low or zero Annual Percentage Rate (APR). This gives you more time to pay off your purchase price without paying a lot in interest, but it’s important to find out when you’ll start paying interest to make an informed decision.

Key Points to Consider When Taking Out a Loan

You should always compare offers for loans and financing. Here’s what to consider:


The APR is the interest rate you’ll pay over the course of the year, rather than each month. As with other interest rates, it’s ideal to get a lower interest rate to pay less over the life of the loan. Make sure to read the fine print and consider whether your payments are manageable within your budget.

Monthly Repayments

Remember to factor your payments into your budget to ensure you can pay them comfortably with your other bills. If you miss payments, you could deal with late fees or penalties that make your payments much higher.


It’s worth shopping around to see what options you have for financing. Compare your options and evaluate which one has the most competitive rates and terms.

Local utility companies often offer rebates for energy-efficient upgrades, such as a new HVAC system. Look for local deals at the Database of State Incentives for Renewables & Efficiency. Some tax credits or rebates may apply under the Inflation Reduction Act (IRA).

Lender Fees

Always check different fees and charges that can add to your costs. Make sure to evaluate your costs – including fees – for your loan options.

The Benefits of HVAC Financing

If you work with an HVAC company like ASI Heating and Air, you can access competitive financing options for your HVAC purchase. We offer a range of financing plans to help you get the right system for your home and budget.

Ready to upgrade your HVAC system? Contact us at  ASI Heating and Air.