AC Unit Financing: How to Pay for a New HVAC System in 2025

Replacing or installing a new HVAC system is a major expense—often ranging from $10,000 to $15,000 depending on your location and home setup. And while it’s not a small purchase, you don’t have to cover the full cost upfront. Whether you’re upgrading an old unit or dealing with a sudden breakdown, there are financing options that can make the process more manageable.

This guide breaks down how AC unit financing works, who it’s best for, and how to compare your options with confidence.

Table of Contents

1. Unsecured personal loans
2. Secured personal loans
3. Home equity lines of credit (HELOC)
4. The best AC unit financing options 
   1. Credible
   2. SoFi
   3. Figure
   4. LightStream
5. How to qualify for an AC loan
6. Other options to finance a new AC unit 
   1. Federal grant
   2. Credit cards
   3. Retail financing
   4. Peer-to-peer financing

Can you finance a new AC unit?

Yes, you can finance a new AC unit. Because it typically requires a full HVAC system installation, the total cost can be significant—but there are several financing options available.

What are the best ways to finance a new AC unit?

There are several ways to finance a new AC unit, each with considerations to know.

Unsecured personal loans

Personal loans are a popular way to finance a new AC unit, especially if you need funds quickly. They’re widely available, relatively simple to apply for, and don’t usually require any collateral.

Typically, personal loans are unsecured, meaning they don’t require you to put up an asset like your home or car as collateral. They typically come with:

• Faster funding: You can often receive the money within a few days—ideal if your AC unit needs immediate replacement.
• Higher interest rates: Because they’re unsecured, interest rates are typically higher than with a HELOC or secured loan.
• Fixed repayment terms: You’ll have set monthly payments over a defined loan term, which helps with budgeting.

This can be a great option for homeowners who want speed and simplicity and are comfortable paying a bit more in interest in exchange for convenience.

Secured personal loans

If you’re looking for lower interest rates and are willing to offer up collateral, secured personal loans are another option. You could use high-value assets such as:

• Savings accounts
• Investment accounts
• Jewelry
• Art
• Automobiles
• Real estate

However, remember, if you default, the lender could seize the collateral asset.

Home equity lines of credit (HELOC)

HELOCs are a good option if you own your home and have sufficient home equity. They typically come with:

• Lower interest rates than unsecured personal loans
• Higher borrowing limits

However, they do take longer to set up. The lender may require a home appraisal, which adds to the timeline. Still, for homeowners, this can be one of the most cost-effective ways to finance a major HVAC upgrade.

The best AC unit financing options 

We like the following lenders because they have lower interest rates than their competitors and the application process is an overall smoother, faster experience.

Credible

Best Personal Loan Marketplace

5.0 _/5

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Why it’s a good AC unit financing option

As a leading online loan marketplace, Credible offers borrowers a platform to compare prequalified personalized loan offers from multiple lenders. This approach saves time and ensures borrowers can find the most competitive rates and terms without lowering their credit score.

The platform’s user-friendly interface and transparent comparison tools make it easy for homeowners to navigate financing options. With Credible, applicants can prequalify for multiple loan offers by completing a single application. 

This is advantageous if you’re looking to finance an AC unit because you can assess your options and make informed decisions without the hassle of rate shopping with individual lenders.

• Marketplace includes a diverse range of lenders
• No hidden fees or costs throughout prequalification and loan comparison process
• See prequalified rates based on your credit profile

SoFi

Best Personal Loan for Good Credit

5.0 _/5

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Why it’s a good AC unit financing option

SoFi is our top choice for borrowers with good credit shopping for AC unit financing. With loan amounts that start on the low end and competitive interest rates, you can lower your rate further if you sign up for autopay, which offers a 0.25% discount.

SoFi also allows you to check your rates without a hard credit inquiry so it won’t harm your credit. It also offers member benefits such as financial advising.

• Easy application gets decisions in minutes
• No fees required
• Loan amounts: $5,000 – $100,000

Figure

Best Overall HELOC

4.9 _/5

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Why it’s a good AC unit financing option

Figure is a digital-first lender that streamlines the HELOC approval and funding phases with artificial intelligence and blockchain technology. You’ll appreciate the expedited process, which contrasts with the lengthy timelines associated with traditional lenders.

Figure requires borrowers to draw 100% of the funds at the time of credit origination. But as you repay your balance, you can redraw funds. 

Because of this feature, we think a Figure HELOC is best for homeowners looking to finance significant purchases or projects, including installing a new air conditioning system, and who may have ongoing or future financing needs.

Borrowers also report a seamless and user-friendly experience, from application to funding, and helpful customer support. This blend makes Figure an excellent choice for homeowners seeking to invest in their comfort with a new AC unit without the hassle of traditional lending processes.

• You must draw 100% of funds at the line of credit origination, with the ability to redraw as you pay off the balance
• Use of AI and blockchain makes approval and funding fast
• Fixed rates (unique from many HELOC lenders)

Upgrade

Best Personal Loan for Fair Credit

4.9 _/5

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Why it’s a good AC unit financing option

Upgrade is a solid option for borrowers with bad or fair credit looking for HVAC financing. If you need a loan for an AC unit or system in the lower range, Upgrade provides loans of as little as $1,000. Plus, you can check your rates and loan amounts without a credit check. 

You can likely expect a higher interest rate if your credit score is less than stellar, but Upgrade won’t assess a prepayment penalty if you pay off your loan early. Plus, it offers a 15-day grace period before the late fee kicks in.

Beyond personal loans, Upgrade offers free credit monitoring and online educational tools. Once you accept your loan offer, you could get loan proceeds the next day.

• Credit health tool to monitor your credit score and get personalized recommendations
• Loan amounts: $1,000 – $50,000
• 15-day grace period before late fee is assessed

Aven

Best Small HELOC

4.8 _/5

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Why it’s a good AC unit financing option

AvenCash, Aven’s new HELOC product, is a top choice for financing your AC unit, especially if you’re looking for a smaller line of credit. AvenCash combines fast approval times with flexible repayment options, making it an ideal option for homeowners who want a quick and easy way to finance their AC installation.

AvenCash offers fixed interest rates from the start, providing stability in your monthly payments. Although you’re required to draw the full HELOC amount at origination, you can redraw funds as you pay down the balance over a 5-year draw period—perfect for ongoing or future projects.

Aven stands out with its fully digital process, from application to automated appraisals, and funding in as little as three days after signing. This streamlined approach, along with its debt protection program and lowest rate guarantee, ensures a smooth and reliable experience.

• Fast approval and funding in as little as 3 days
• Fixed interest rates for predictability
• Great for small HELOCs, with loan amounts from $5,000 – $400,000
• Excellent customer reviews and seamless digital experience

LightStream

Best Personal Loan for Excellent Credit

4.8 _/5

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Why it’s a good AC unit financing option

LightStream offers personal loans with a streamlined application process. With personal loan amounts starting at $5,000 and repayment terms that begin at two years and can stretch out to 12 years, it makes for an easy lender for AC financing.

Lightstream also offers a robust 0.50% discount if you opt for autopay. Further, it doesn’t assess prepayment penalties, so if you pay off your loan early, you can save on interest fees.

LightStream offers competitive rates, no origination fees, and a program that will beat any competitor’s rate if the borrower meets certain conditions. 

Because LightStream doesn’t allow borrowers to prequalify with a soft credit check—which doesn’t affect your credit—it’s best for those confident they’ll be approved for the lowest rates due to their excellent credit.

• Rate Beat program will beat a competitor’s offer by 0.10% APR if approved for a lower rate elsewhere
• Borrowers not satisfied with their loan experience can get a $100 refund
• Loan amounts: $5,000 – $100,000

How to qualify for an AC loan

Depending on if you choose a personal loan or HELOC for a new AC unit, here is what to expect when applying.

Applying for a personal loan for AC unit financing

A personal loan is a straightforward option when financing an AC unit. Unlike loans for houses or cars, personal loans are typically unsecured, meaning the loan isn’t tied to the item you’re purchasing. This makes the application process relatively quick.

Here’s how to take out a personal loan:

• Check your credit score: Lenders look at your credit score to determine if you qualify for a personal loan and what interest rate you’ll receive.
• Compare lenders: You can apply through banks, credit unions, or online lenders. Look for competitive rates and terms that suit your needs.
• Submit an application: Most lenders require basic information, such as your income, employment status, and loan amount.
• Get approved and receive funds: If approved, you can often receive the loan within a few days, making this a faster option if you need the money quickly.

Using a HELOC to finance an AC unit

If you have enough equity in your home, a HELOC may be another option for financing. HELOCs allow you to borrow against the equity in your home, and you can typically borrow up to 80% of that equity.

Here’s how to apply for a HELOC:

• Assess your home’s equity: Start by calculating your home’s equity—this is the difference between what your home is worth and what you still owe on it.
• Apply with a lender: Banks and credit unions commonly offer HELOCs. The lender will evaluate your credit and home equity to determine your loan limit.
• Home appraisal: One key step in the process is having your home appraised to confirm its current value, which can extend the application timeline.
• Receive a credit line: Once approved, you’ll receive a revolving line of credit, similar to a credit card, where you only pay interest on what you borrow. This makes it a flexible option if you plan to pay for the AC unit in stages.

While HELOCs often offer lower interest rates than personal loans, the process takes longer due to the need for an appraisal. If you’re short on time, a personal loan might be a quicker solution.

AC unit financing with bad credit

Having bad credit doesn’t automatically disqualify you from financing a new AC unit—but it can make the process more challenging. Some lenders specialize in working with borrowers who have low credit scores, though you may face higher interest rates or be asked to provide collateral.

Here are some ways to improve your chances:

• Apply with a cosigner: A co-signer with good credit can help you qualify for a loan and potentially secure a lower interest rate.
• Offer collateral: If you’re open to a secured personal loan, putting up an asset—like a savings account or car—can make approval more likely.
• Explore credit unions: Credit unions often have more flexible lending criteria than traditional banks and may be more willing to work with you.
• Consider HVAC financing through the installer: Some HVAC companies partner with lenders to offer financing directly, and they may have options for borrowers with less-than-perfect credit.

Before applying, check your credit report for errors and consider taking a few weeks to pay down existing debt or bring past-due accounts current. Even small improvements in your credit profile can make a meaningful difference in loan terms.

Other options to finance a new AC unit 

Getting a personal loan to cover the cost of a new AC unit isn’t your only option. You may also want to consider pursuing federal grants, specialized credit cards, peer-to-peer lenders, and HVAC companies that offer financing themselves. 

Each option, however, has its share of drawbacks you’ll want to consider before deciding.   

Federal grant

The United States government offers grants to help with heating and cooling. For example, the Weatherization Assistance Program helps cover the costs of weatherizing a home and replacing boilers, furnaces, and air conditioners. Applicants must meet eligibility requirements, and money is limited. 

This is a highly competitive option because the money from a federal grant does not have to be repaid; there is only a set amount each year nationwide. Of course, there is no harm in trying, but you’ll want to have a backup plan in case your application is denied. 

Pros

• Money does not need to be repaid

Cons

• Grants are highly competitive

• Must meet eligibility requirements

• Application processing time can take longer than other methods

Credit cards

Depending on the cost of purchasing your new AC unit, using a credit card to pay for the expense may be a good option. The best option would be to use a card with a 0% intro APR—because some cards offer 0% for over a year. 

The catch is that you need a strong credit score to qualify, and the card credit limit may not be enough to cover the entire cost. If you don’t pay off the balance within the intro APR period, the interest rate will likely jump to somewhere between the high and low thirties. 

Pros

• Make minimum payments during the intro period for 0% intro APR cards

• Don’t need collateral to secure the card

Cons

• Need a strong credit score to qualify

• Credit limit may not be enough to cover the entire AC unit cost

• Higher interest rate than personal loans

Retail financing

Some HVAC companies offer financing options, meaning the company itself offers a loan, and you make monthly payments to them instead of to a lender. The biggest advantage to going this route is that it’s fast and easy, and you know you’ll get the exact amount you need for your AC unit. 

There are drawbacks to retail financing. The biggest is that there are often a lot of unnecessary fees, and the interest rate is likely to be higher than it would be with institutional lenders.

Pros

• Fast and convenient

• Loan amount is the exact amount needed

Cons

• May have high interest rates

• May have unnecessary fees

• Still need to have a strong credit score to qualify

Peer-to-peer financing

Peer-to-peer (P2P) financing is similar to going to an online lender. You apply for a loan, and, if you’re approved, the money is deposited directly into your bank account. The eligibility requirements are often much easier to meet.

But the catch is that the interest rates are typically higher than other loan products and often a few fees are involved. For subprime borrowers, however, P2P loans can be one of the better options on the market.

Pros

• Easier qualifications than other loan products

• Fast processing time

Cons

• May have higher interest rates

• May have more fees than standard lenders

How we rated the best AC finance options

Since 2018, LendEDU has evaluated home equity companies to help readers find the best home equity loans and HELOCs. Our latest analysis reviewed 850 data points from 34 lenders and financial institutions, with 25 data points collected from each.

Since 2017, LendEDU has evaluated personal loan companies to help readers find the best personal loans. Our latest analysis reviewed 1,029 data points from 49 lenders and financial institutions, with 21 data points collected from each.

This information is gathered from company websites, online applications, public disclosures, customer reviews, and direct communication with company representatives. These star ratings help us determine which companies are best for different situations. We don’t believe two companies can be the best for the same purpose, so we only show each best-for designation once.

Recap of the best AC unit financing options