Best HVAC Loans & Financing in March 2025

If you need to replace your HVAC system, you probably want to get it done as soon as possible. We reviewed the best personal loans to cover financing for heating, ventilation, and air conditioning (HVAC) services and found the best lender overall to be LightStream, based on its high loan amounts (up to $100,000), same-day funding, and flexible repayment terms (up to 20 years).

But you may also have concerns about the cost of HVAC replacement, which could be enough to make you sweat or shiver even more. We’ll cover the best HVAC financing companies and help you compare your options, so you can choose the best loan for your needs.

Best HVAC loans

Methodology

To find the best HVAC loans, Credible evaluated 31 lenders across 899 data points. Top lenders offer personal loans designed specifically for home improvement. We also evaluated criteria including loan amounts, interest rates, fees, funding time, discounts, and customer experience. Each data point was verified by a senior editor to make sure it was accurate at the time of publication.

Learn more about how Credible rates lenders by exploring our personal loans lender rating methodology.

How much does a new HVAC system cost?

Installation of a new HVAC costs an average of $7,500, according to home services marketplace HomeAdvisor. The website also estimates that the normal price range runs from $5,000 to $12,500 with a high of $22,000, depending on factors such as size, efficiency, and labor costs.

After debt consolidation and credit card refinancing, home improvement loans are the most common type of loan approved through the Credible marketplace. The average home improvement loan amount in February 2025 was $22,662.

How to compare HVAC loans

When comparing HVAC financing options, it’s important to consider the following:

• APR: The annual percentage rate (APR) indicates how much you’ll pay annually to borrow the money, including interest and fees. Once you narrow down your options based on eligibility and the loan terms you need, choose the lender that offers you the lowest APR. Prequalify with multiple lenders to compare APR estimates on personal loans. 
• Loan amounts: Some loan types and lenders offer higher loan amounts than others. Look for lenders that offer the amount you need to fund your HVAC purchase and installation. 
• Repayment terms: Consider how long you’ll need to repay the loan. Generally, a shorter term will save you money on interest, while a longer term can keep your monthly payment low. 
• Fees: Some personal loan lenders charge origination fees, and home equity loans come with closing costs. Consider these and other fees when comparing your options, and be sure to avoid lenders that charge prepayment penalties. 
• Cosigner option: If you have bad credit, you may need help qualifying for an HVAC loan. A friend or relative with good credit can cosign the loan, which could make it easier for you to qualify or reduce your interest rate. But it also makes them fully responsible for the loan if you can’t make the payments. If you go this route, make sure the lender allows cosigners. 
• Time to fund: Time is of the essence when you’re surviving hot or cold temperatures. Some loan types, like manufacturer financing, may be instant, and some personal loan lenders can offer same-day financing. But others, like a home equity loan, can take more than a month to fund. Consider how quickly you need the money when choosing a loan type and lender. 

What is HVAC financing and how does it work?

HVAC financing is any type of loan, line of credit, or credit card used to pay for an HVAC system. Many homeowners can’t afford to pay for the cost of an HVAC system upfront. Fortunately, there are a variety of types of HVAC financing available.

As you explore your options, keep in mind that certain energy-efficient systems may be eligible for federal income tax credits that can reduce the cost of a new system by up to 30% or $3,200 (whichever is lower). Also, research tax credits and rebates offered by your city, state, and energy company. 

HVAC financing provides you with the money you need to pay for your HVAC replacement or installation if you can’t afford the cost upfront.  

You’ll need to repay the loan over time, often with interest, depending on the borrowing method you choose. Compare the APR, terms, closing costs, and requirements of different HVAC financing options before making a choice.

Types of HVAC financing 

You have several options for financing your new HVAC system, including:

• Personal loans: Personal loans provide a sum of money upfront to replace your HVAC system, which you repay in fixed monthly installments over a period of years. Some have repayment terms for up to 12 years, depending on the lender. While personal loan rates range from the single digits to over 30%, the average rate on a 24-month personal loan was 12.33%, according to the Federal Reserve.  
• Home equity loans: Home equity loans let you tap the equity in your home. They tend to come with lower rates and longer terms than personal loans, because your home’s equity is used as collateral. But home equity loans can have high closing costs, unlike some other types of HVAC financing, like personal loans. You also risk foreclosure if you can’t make your payments.  
• Credit cards: While credit cards often have high interest rates, you may be able to qualify for a 0% introductory APR offer on a new card. This could give you up to 21 months to repay the cost of your HVAC installation without interest. Just make sure you can pay off the balance before the promotional period ends if you want to avoid interest payments. 
• Manufacturer or contractor financing: Your HVAC contractor may offer financing options, either through a partnership with a lender or through the HVAC manufacturer. These options may have a low-interest or interest-free period, depending on the company. 
• FHA loans: Government-backed loans can also help with HVAC financing. For example, the Energy Efficient Mortgage program, which is available for energy-efficient improvements if you’re purchasing or refinancing your home, and the Title 1 Property Improvement Loan program are available through mortgage lenders that are Federal Housing Administration-approved or approved to make Title 1 loans, respectively. 
• State loan programs: Some states sponsor low-interest loans for energy-efficient home improvements through local credit unions. Research options in your state.

Related: 0% APR Credit Card vs. Personal Loan

Pros and cons of HVAC financing

Although replacing an old or damaged HVAC system is probably a matter of necessity, it’s important to remember the advantages and disadvantages involved in financing.

How to qualify for an HVAC loan

The eligibility requirements for HVAC financing vary depending on the loan type you choose and the lender. For a personal loan for HVAC installation, you’ll need to meet the lender’s criteria, which generally include:

• Minimum credit score: Many lenders require a good credit score, which is a FICO score of 670 and above. But some lenders have more lenient requirements than others and will approve loans for fair-credit and even poor-credit applicants, especially if you apply with a cosigner or offer collateral.
• Income requirements: Lenders check your annual income when approving you for a loan, and many have minimum income requirements. You’ll generally need a verifiable source of income to get a personal loan. 
• Positive payment history: Lenders tend to check your credit report for late or missed payments. These can hinder your ability to get a loan or increase your rate. 
• Debt-to-income ratio (DTI): Your debt-to-income ratio shows how much of your monthly income you spend on debt repayment. If it looks like you’re already struggling, you might not qualify. For personal loans, lenders generally prefer a DTI below 36%.

How to get an HVAC loan with bad credit

Getting an HVAC loan with bad credit can be a challenge, but not necessarily an insurmountable one. Start by comparing lender requirements and prequalifying for bad-credit personal loans. If you’re not eligible for any of the options, consider applying with a cosigner or choosing a loan that requires collateral. Secured loans are often easier to qualify for, though fewer lenders offer them.

If those options don’t pan out, consider no-credit-check loan options, such as a 401(k) loan or life insurance policy loan, or ask friends and family for help. You can also take steps to improve your credit score and boost your savings. A portable air conditioner or space heater can provide comfort in the meantime.

Disclosure: Some lending partners that participate in Credible’s comparison marketplace offer loans to borrowers with scores as low as 550. Borrowers with low scores will have fewer lending options than borrowers with higher credit scores.

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