Financing a Replacement Furnace or AC System



The number of options to finance home improvement projects, including HVAC replacement, have never been greater, and affordability is a key component in achieving emergency or energy efficiency improvements for many homeowners.

The National Association of Home Builders (NAHB) says that, on average, a furnace or air conditioning unit lasts 15 to 25 years. According to Home Advisor, the cost for a replacement HVAC unit can range from $3,000-7,000 for single item replacement, if your ducts function well, to more than $10,000 depending on the installation requirements. Getting a home equity line of credit or a short term loan can help a homeowner manage the required investment for what is often an emergency situation. A few places to look for financing include traditional banking channels, dealer financing programs like the one we offer through Wells Fargo Financial National Bank, an Equal Housing Lender, and other energy efficiency loan programs.

HVAC Dealer Financing Programs

We offer a program through Wells Fargo Financial National Bank where, after an application process, a credit card is issued with a 6 or 12-month financing period. Obtaining financing through this program can expedite an application and avoid some of the delays and challenges associated with traditional bank loans. The card that is issued is limited to the purchase you are making from us for a new Bryant Furnace, Aprilaire or other HVAC product. Find out more info on our Financing Page on our website.

Home Equity Line of Credit

Another financing option is  a home equity line of credit or HELOC from your bank. You can borrow against the difference between your home’s value and what you owe on it with a home equity loan or home equity line of credit. A home equity loan is a one-time draw, while a home equity line of credit works like a credit card. Your loan is limited to 75 percent to 80 percent of the equity. If you have $10,000 in the home, you can use up to $7,500 to $8,000 to buy the system. You pay less interest with loans against your home than dealer or store-connected credit cards. It takes time to set up a HELOC and you often have to pay initiation fees and meet certain requirements like appraisal minimums.

Other Programs

Some people quality for a home improvement loan backed by the Federal Housing Administration. According to Energy Star, your HVAC replacement is a home improvement for which you can get FHA financing. The federal government has rolled out a pilot PowerSaver program targeting those who choose energy-efficient HVAC units, typically those with the Energy Star label. Both the traditional Federal Housing Administration and the pilot programs let you borrow up to $7,500 without putting up your home as collateral, but you must have home equity to participate in the PowerSaver program.

Check out DSIRE for more energy efficiency programs and options in our area.

For more information about financing or to talk one of expert furnace installers in Madison, please visit our Contact Us page or call us at 608-233-1001.


Recent Posts