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How to Finance a Furnace: What You Need to Know

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Replacing your home’s furnace is a significant investment, often costing thousands of dollars. For many homeowners, paying for a new furnace upfront is not feasible. Fortunately, furnace financing options are available to make your HVAC unit more affordable. Instead of paying the full amount upfront, financing allows you to spread the cost over time, typically through fixed monthly payments. HVAC financing can be obtained through your installation company, a bank, a credit union, or a specialized lender. This article breaks down how to approach HVAC system loan options to guide your financing decision.

Why Finance Your Furnace?

For many homeowners, the upfront cost of replacing a furnace can be a financial burden, leading them to put off this important system replacement. Financing your furnace installation has several compelling advantages that can make it a smart choice for your home and budget. Here are some key reasons why financing your furnace might be the right for you.

  • Spreads out the cost: Financing allows you to get the furnace you need now while spreading the cost over time into manageable fixed monthly payments.
  • Preserve savings: Through financing, you can keep more money in your savings account for other expenses or emergencies rather than depleting it to pay for the HVAC unit. 
  • May be tax deductible: In some cases, the interest on your furnace financing may be tax deductible if it’s considered a home improvement loan. Consult a tax professional to see if you qualify.
  • Allows purchasing a higher-quality unit: Financing can enable you to invest in a higher-efficiency, better-quality furnace that will save money on energy bills and last longer.

The Financing Process

Financing your furnace may seem daunting, but it can be broken down into a few straightforward steps. By understanding what’s involved in securing financing, you can confidently navigate the process and make well-informed decisions about your HVAC system replacement:

  1. Getting estimates: Obtain written estimates from reputable HVAC companies for your furnace replacement. The estimates should be all encompassing of the equipment, labor, any additional costs (e.g. ductwork, removal of old unit), and projected energy savings of the new HVAC unit.
  2. Checking financing options: Ask HVAC companies if they offer financing directly or have lenders they partner with. Compare these options to furnace loans from your bank, credit union, or online lenders. Compare interest rates, loan terms, fees, and qualifying requirements.
  3. Applying for financing: Once you’ve chosen a financing option, complete a loan application and provide documentation such as proof of income, ID, and home ownership. Many lenders have online applications for convenience.
  4. Loan decision and furnace installation: The lender will review your application and make a loan decision. Upon approval and finalization of the loan paperwork, your loan funds will either be disbursed to you to pay the HVAC company or paid directly to the company. The company will then schedule your furnace installation.

Types of Loans

Several types of loans are available to homeowners looking for funding solutions for their furnace replacement. Logan Services offers various financing options to suit your home, comfort requirements, and budget. Let’s explore some of the most common types of loans used for HVAC financing:

  • Wells Fargo financing: For more than a decade, we’ve been offering customers special financing options, with approved credit, from Wells Fargo on new Trane heating and cooling systems. With a variety of options available, we strive to utilize all of the best options in order to fit your budget. It only takes a few minutes for our comfort consultant to help you apply for a line of credit, which can be done in your home during the estimate. Applications are secure, and you will know if you have been approved before we leave your home.
  • Wright-Patt Credit Union: Enjoy easy, quick, and convenient financing options from Wright-Patt Credit Union. WPCU has been around for 90 years, helping people in the community with their financial needs. They offer a quick and easy application process, competitive rates, flexible terms, local loan decisions, and outstanding service and support.
  • Synchrony financing: With budget-friendly financing solutions, Synchrony can help you with unexpected home comfort crises. They offer convenient monthly payments, exclusive promotional financing offers, and a simple, hassle-free application process with fast credit decisions.
  • GoodLeap financing: GoodLeap offers flexible payment options for sustainable home upgrades. You can apply in minutes and get approval in seconds, making the process easy and accessible.

When considering financing options for your furnace replacement, evaluate your individual needs, financial situation, and qualifications. Compare interest rates, loan terms, fees, and eligibility requirements to determine which type of loan best fits your circumstances. Don’t hesitate to consult with our Comfort Consultants, who can explain the different companies and options available to help you make an informed decision.

Advantages and Disadvantages of Furnace Financing

Before deciding between loan options, weigh the pros and cons of pursuing financing for your furnace funding solution. By understanding the advantages and disadvantages of financing, you can determine whether it’s the right path for you and your household. Let’s take a closer look:


  • Makes a furnace immediately accessible and affordable by spreading the cost over time.
  • Fixed monthly payments help with budgeting.
  • No down payment is usually required.
  • Fast loan approvals and funding.
  • Builds your credit with on-time payments.
  • Often there is no penalty for paying off the system early


  • You may pay more over time for the furnace due to interest charges.
  • Missing payments can damage your credit score.
  • Some loans may have origination fees or prepayment penalties.
  • Loan approval and interest rates depend on your credit, meaning low credit applicants may pay high-interest rates.

Choosing Between Financing Options

Because several furnace financing options are available, compare them carefully to find the best fit to save you money and provide a comfortable repayment experience. Here are some aspects to consider when choosing between HVAC system loan options:

  • Annual Percentage Rate (APR): The APR represents the total yearly cost of borrowing, including the interest rate and fees. The lower the APR, the less you will pay over time. 
  • Loan term: A longer loan term will have lower monthly payments but high interest rates. A shorter term means higher monthly payments but less interest paid. Choose a term with payments that fit comfortably in your budget.
  • Fees: Some loans have origination fees, application fees, or prepayment penalties (a fee for paying off the loan early). Factor these into your cost comparisons.
  • Customer service and reputation: Read reviews of lenders you’re considering. Choose one with good customer service and a track record of treating borrowers fairly. 
  • Special promotions: Some HVAC companies offer promotional financing for set periods. Be sure you understand all the terms and can pay off the balance in the promotional period to avoid retroactive interest charges.

Replacing an HVAC unit is a big investment, but financing options put a new, efficient heating system within reach for many homeowners. By understanding how furnace financing works, comparing funding solutions carefully, and choosing an affordable loan that fits your budget, you can enjoy a warm, comfortable home while responsibly managing the cost. Be sure to make payments on time to keep your financing costs low and your credit strong.

The Logan Difference

As a family-owned and operated business, Logan Services understands the importance of treating our customers like family. That’s why we go above and beyond to ensure that every installation is done right the first time so our customers are completely satisfied with our work.

Our commitment to quality starts with our rigorous training program that all of our installers must complete. Our installers are equipped with the skills and expertise needed to handle any HVAC installation, no matter how complex. We have a checklist that our installers must complete for every job, which is signed off on by one of our experienced install managers.

At Logan Services, our job isn’t finished until our customers are completely satisfied. After the installation is complete, we take the time to do a thorough walkthrough with each customer. We show them how to set up and troubleshoot their new system, and we make sure that all warranty information is valid and up-to-date.

When you choose Logan Services for your HVAC needs, you can trust that you’re getting the best. We’re dedicated to providing top-quality installations, exceptional customer service, and a commitment to our community that sets us apart from the rest. That’s the Logan Difference.

Frequently Asked Questions

What credit score is needed to finance a furnace?

Credit requirements vary by lender, but in general, a higher credit score will result in a loan with competitive interest rates. Some lenders specialize in HVAC financing for borrowers with lower scores, but these come with high-interest rates.

Are there government programs to help with furnace financing?

Some state and local governments offer assistance programs to help low-income homeowners finance energy-efficient upgrades like new furnaces. Contact your local community action agency or state energy office to see what programs you may qualify for.

How long can you finance a furnace for?

Furnace financing terms typically range from 12 to 120 months, which equates to 1-10 years. Short-term loans have higher monthly payments but cost less in the long run. Long-term loans have lower monthly payments but cost more due to the interest paid over time. The most common furnace loan terms are 3-7 years.

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