As a homeowner, heating and cooling systems aren’t luxury items that you can choose not to invest in if you don’t want to. They’re necessary for the function, comfort, and safety of your home, after all. Unfortunately, if you need to replace one of your HVAC units, it can come at quite a substantial cost.
Fortunately, there are a number of ways that you can obtain financing so that you aren’t on the hook for thousands of dollars upfront. The following are a few ways that you can procure HVAC financing:
- Obtain a loan from the seller – Many sellers of HVAC units provide financing. However, be wary of some of the home improvement retailers out there as they do charge exorbitantly high-interest rates – sometimes as much as 28 percent. We do offer to finance here at Air, Plumbing & Heating Solutions as well.
- Obtain financing via the manufacturer – Some manufacturers do provide financing options for their HVAC systems. Most of these manufacturers will provide you with a special credit card that you can use to pay for your HVAC system and which you must pay down every month.
- Use your home equity – You can borrow against the equity you have in your loan. You’ll be provided with either a home equity loan or a home equity line of credit. The loan is a one-time sum of money, whereas the line of credit is like a credit card. You can borrow upwards of 75 to 80 percent of your equity. While interest rates are often lower than manufacturer financing, you do run the risk of losing your home to foreclosure if you can’t keep up with your repayment schedule.
- Obtain a home improvement loan – If you have home equity, you may be able to take out a home improvement loan via the Federal Housing Administration (FHA). The FHA boasts a PowerSaver loan program that allows you to borrow upwards of $7,500 to put towards your HVAC system without having to put your property up as collateral, which means that if you can qualify, it’s much less risky than borrowing against your equity.
These are a few ways that you can obtain HVAC financing to help with the cost of replacing your HVAC units. For information about our financing program and the terms that we offer, be sure to contact us at Air, Plumbing & Heating Solutions today.