man repairing HVAC wearing yellow hard hat

HVAC Financing: How To Keep Your Heat And Air Running For Any Season

Hanna Kielar6-Minute Read
October 06, 2021


Being comfortable in your home can largely depend on your ability to regulate the indoor temperature. A working heating, ventilation and air conditioning system, or HVAC, can be a necessity for homeowners who live in constantly changing seasons.

Adding or replacing an HVAC system, however, can have as big of an effect on your finances as your home comfort. Equipment, installation and other costs can add up quickly, and having a working HVAC system may not feel worth it if you can’t afford the utility costs afterwards.

Fortunately, there are options for HVAC financing so you don’t have to break the bank for your home comfort. The article below will take you through different HVAC installation and replacement costs, and the financing options to pay for them.

Why You Should Consider HVAC Financing

Costs for installing and replacing a heating and cooling system can change every year, and older homes can have systems a decade or more old. The costs go beyond just the main unit, too. To help you understand what you’ll be paying for, we’ve broken down the various costs for equipment and other factors that go into installing or replacing an HVAC system.

Signs Your HVAC System Needs An Upgrade

  • Your energy bill keeps increasing.
  • Your home struggles to stay at a consistent, ideal temperature.
  • You’re hearing odd sounds or smelling unusual odors from your HVAC vents.
  • You notice more dust around the house than normal.
  • Any repair to your HVAC is more expensive than purchasing a new one.

Cost To Replace An HVAC System

According to, and, the average cost to replace a full HVAC system can be $5,000 – $10,000. That price includes a new unit, installation costs and the removal and disposal of the older unit.

For your convenience, we’ve broken down the average costs depending on the unit you intend to replace.


Average Replacement Cost

Air conditioner and furnace (HVAC)

$5,000 – $10,000

Central AC

$3,000 – $7,600

Ductless mini-split AC

$2,000 – $10,000

Electric furnace

$1,500 – $2,500

Oil furnace

$4,200 – $6,900

Heat pump

$4,000 – $8,000

Boiler or radiator

$1,500 – $7,700

Geothermal heat pump

$15,000 – $35,000

Other Factors That Affect HVAC Costs

Beyond the unit itself, there are a few notable factors that will affect how much you pay for your HVAC in the end.

These factors include:

  • If your HVAC requires any ductwork to be done, you can expect to pay an additional $500 – $2,000.
  • Local conditions. Heat leaving or entering your home is measured in British Thermal Units (BTU). Depending on where you live, you may require an HVAC unit of a particular size in order to match the BTU measurement of your environment.
  • Square footage. The size of your home can directly affect how much you’ll need to spend on a HVAC unit. The average cost per square foot for an HVAC is $20 – $60.
  • The HVAC company. While we can show you the average costs for an HVAC system, ultimately the price will depend on what company you purchase it through. Higher end systems will cost more in the end, but these units may have longer lifespans than less expensive brands.

How To Finance Your HVAC System

Not everybody can cover those kinds of costs out of pocket, but there are enough financing options to choose from that you can likely find one that would work for you.

Let’s take a look at some HVAC loan options below.

Personal Loan

A personal loan is a common way for people to pay for numerous types of expenditures, particularly home improvement projects like HVAC installation. If you have the required credit score and are able to make your monthly payments, a personal loan can be the simplest and fastest option for you to get the funds you need.

Consider the following items when thinking over a personal loan:

  • Credit score. A credit score of 720 could get you good terms for a personal loan, but you may qualify for a loan with a lower score. If your credit score is on the lower end, you can expect to have a higher interest rate.
  • Interest rates. Interest rates for personal loans are around 6 – 36%, depending on your credit history. With a fixed interest rate plan, you can be sure to pay the same amount for every monthly payment.
  • APR and additional fees. A loan with a lower annual percentage rate (APR) will cost you less in the long run. In addition to interest rates, your APR accounts for additional fees charged by the lender, such as an origination fee.
  • Loan terms. The repayment periods for personal loans are typically 36 – 60 months. A longer term will mean lower monthly payments, but more interest overall.
  • Application process. Getting a personal loan requires submitting a full application and the following details:
    • Personal information (name, address, date of birth)
    • Social security number
    • Driver’s license
    • Proof of income
    • Bank statements and account information
    • Pay stubs
    • Tax forms

You can receive your personal loan funds within a week or even days after getting approved. And sometimes, like with Rocket Loans, you can even get funds into your bank account on the same day.*

Home Equity Loans

With a home equity loan, you convert your home’s equity into cash you can put toward your HVAC replacement and installation. You must meet certain credit and debt-to-income ratio (DTI) requirements to qualify, as well as have enough equity in your home to borrow against. Unlike personal loans, it can take weeks for your loan application to be fully processed and to receive your money. The other caveat is that you’ll have to put your home up as collateral in order to borrow the funds.

If you fail to make your monthly payments on the loan, you could end up losing your house through foreclosure, and your new HVAC along with it.


A home equity line of credit (HELOC) is similar to a home equity loan, only instead of borrowing against your home’s equity, you convert it into a revolving line of credit you can borrow from and repay, much like a credit card.

As with a home equity loan, your home is also used as collateral, risking the house itself through foreclosure if you fail to pay back what you borrow.

FHA Loans

The Federal Housing Administration (FHA) can help you with your HVAC financing through the following loans and programs:

  • FHA Title I loan. Title I loans are fixed-rate home improvement loans that can be used to pay for new appliances, such as an HVAC unit. The FHA requires you to meet certain credit and income criteria, and for your home to meet HUD-related standards.
  • FHA 203(k) loan. If you refinance with a 203(k) loan, you can roll an HVAC replacement into the new mortgage. To qualify, you must meet FHA requirements and the necessary renovations must cost a minimum of $5,000.
  • FHA Energy Efficient Mortgage Loan program. The FHA’s Energy Efficient Mortgage (EEM) program offers borrowers the funds to upgrade their home and appliances to more energy efficient While HVACs with higher energy savings may cost more upfront, you may start seeing a much lower utility bill over time.

Because the FHA requires you and your home to meet certain requirements, it could take longer than you’d prefer for your HVAC installation to take place. If you’re OK with waiting, then these FHA options could save you some money.

Alternatives To HVAC Loans

Loans aren’t the only way to finance your new HVAC. Take a look at the alternative HVAC financing options below.

HVAC Company Financing

Many HVAC retailers and companies partner with third-party lenders to give their customers financing options. Rolling your costs up into a single payment plan could be a convenient option, although interest rates are typically higher with manufacturers.

Credit Card

You could pay for your HVAC by getting a new credit card and taking advantage of its 0% interest promotional period. This term usually will last 12 – 18 months, and if you can repay it during that time, you can save yourself from paying any interest. If not, you could get charged with high interest rates and wind up in even more debt.

Emergency Fund

As a last resort, you always have the option to dip into your emergency fund. It may hurt to spend your hard-earned savings, but you can skip out on monthly payments and interest rates by pulling from your own piggy bank. Depending on extreme temperatures outside, you might consider a new HVAC as an emergency.

Final Thoughts: Stay Comfortable All Year Round With HVAC Financing

You can be comfortable in your home without going house poor if you find HVAC financing that works for you. From personal to FHA loans, there are plenty of options to help prepare your home for any season.

If you find that a personal loan sounds like the right fit, apply today with Rocket Loans® and get ready to crank that air.

Disclaimer: Same Day Funding available for clients completing the loan process and signing the Promissory Note by 1:00PM ET on a business day. Also note, the ACH credit will be submitted to your bank the same business day. This may result in same day funding, but results may vary and your bank may have rules that limit our ability to credit your account. We are not responsible for delays which may occur due to incorrect routing number, account number, or errors of your financial institution.

Hanna Kielar

Hanna Kielar is a Section Editor for Rocket Auto℠, RocketHQ℠, and Rocket Loans® with a focus on personal finance, automotive, and personal loans. She has a B.A. in Professional Writing from Michigan State University.