Is HVAC Financing Right For You?

The cost of upgrading your HVAC system can cause some anxiety when checking the price tags for a new unit. While an energy-efficient system will save you money in the long run, it doesn’t help with the upfront costs. Luckily, HVAC financing can help make upgrading your unit a lot less financially stressful. Read on to learn about your financing options for upgrading your HVAC system.

What Are HVAC Loans?

Obtaining an HVAC loan is a similar process to getting an auto loan. Instead of paying a large amount of money upfront, you pay off the purchase price in monthly payments making this large purchase more affordable.
  Having the ability to pay your HVAC system off over time in smaller installments helps you be able to upgrade your unit without breaking the bank, especially when on a budget. However, you typically need good credit to qualify for HVAC financing that has competitive interest rates. Below you’ll find out more about your options for financing your HVAC system:

HVAC Company Financing

When you’re looking to upgrade your heating and cooling unit, working with a renowned company like Moore Home Services grants you access to many financing options. Our team will work with you to lay out an individualized finance plan that works within your budget. Whether or not you plan on paying for your upgraded system all at once, it’s always worth looking into financing options as promotions or deals can help you save on the total price.

Bank Financing

A lot of homeowners will rely on their bank to provide a loan for large purchases, such as home renovations. Sometimes it can be more comfortable to go through your bank to finance a loan for more expensive purchases.
However, there are some downsides to receiving a loan through your bank. A bank may be more difficult to get approved or may have a higher interest rate. If you have an emergency and need a new HVAC system quickly, it can take time to get approved for a loan through your bank.

Credit Union Financing

Similar to banks, credit unions can offer loans to their members. If you’re a member of a credit union, you may be able to access a lower interest rate than working with other lending companies. They don’t typically go off just your credit score but also factor in employment and payment history. Becoming a member takes a little leg work if you’re not already a member. You will need to apply for a membership at a local credit union and wait for approval. Once you are approved, you’ll need to complete an HVAC loan application.

Government FHA Title 1 Loans

In cases that are particularly energy-efficient upgrades such as cooling and heating, you may be able to obtain a Federal Housing Application or FHA Title 1 loan through the government. These loans may help you finance up to $7,500 for a new HVAC system. Learn more through the FHA website.

What About Credit Cards?

Home improvement large purchases can be put on a personal credit card, making this a great alternative when upgrading your cooling and heating units. You are able to pay the upfront price with your credit card and pay off the balance over the coming months.
However, credit cards can have high-interest rates that can cause you to pay much more than the purchase price by the end of the term. Additionally, you’ll be using up your available credit till you pay down the balance. If you are looking to use a credit card for your HVAC financing, keep an eye out for promotions that have zero Annual Percentage Rate, APR, or low introductory interest rates. You’ll still be able to slowly pay off your balance but will pay a lot less interest.

Key Points to Consider When Taking Out a Loan

Comparing your HVAC financing options will help you get the best bargain. Here are a few things to look for:


APR is the annual interest rate on your loan, rather than a monthly interest rate. APR differs per the term of the loan. Make sure to always read the full loan contract prior to signing so that you know exactly how much you’ll be paying.

Monthly Repayments

Even though monthly payments can help make a big purchase easier by breaking it into smaller payments, you will still need to be able to make sure your monthly payments are not too high. Between your monthly bills and your new loan, it’s possible that you can end up with delinquent payments that will add to the total purchase.


Aside from loans, you may be able to qualify for incentives and rebates. Some utility companies will often offer rebates. Check for current promotions at the Database of State Incentives for Renewables & Efficiency. Additional credits and rebates through the Inflation Reduction Act (IRA).

Lender Fees

Lenders may have charges or fees such as late fees, service charges, annual fees, and more that can increase the total cost of your loan. Make sure you read the fine print to determine how much you’ll really be paying.

The Benefits of HVAC Financing

Working with a reputable HVAC company like Moore Home Service, give you a number of options for HVAC financing. It’s affordable and convenient to secure an HVAC financing plan with your HVAC company. At Moore Home Services, you’ll receive an individualized payment plan that will work within your budget. Contact us at Moore Home Services to learn more about HVAC financing.