If the time has come to replace your air conditioner or furnace, you might be wondering how to cover the cost. While planning ahead and saving money can ease the burden, many homeowners still need to finance part—or all—of the cost of a new HVAC system.

Let’s explore the options available for financing an air conditioner, furnace, or full HVAC system replacement and the factors to consider.

Factors to Consider for HVAC Financing

1. Should You Pay Cash or Finance?
If you have the cash, paying upfront may seem like the simplest choice. However, consider whether doing so will leave you with a depleted emergency fund. Another approach is to finance the installation and place your cash in a high-yield savings account or CD to earn interest while making monthly payments. Evaluate the pros and cons of both methods to find the best option for your situation.

2. Credit Requirements
The credit score needed to finance an HVAC system varies depending on the type of financing. Some lenders require good to excellent credit, while others may work with those who have less-than-perfect scores. Be sure to check your credit score before applying.

3. Total System Costs
Understanding the total cost of an HVAC system is crucial. Ensure your contract includes the cost of equipment, labor, disposal fees, and other associated expenses. Detailed pricing information can help you avoid surprises down the line.

4. Compare Financing Options
Different financing options come with varying interest rates, terms, and fees. We’ll break down these options below to help you make an informed decision.

5. Financial Implications
Always review the fine print before committing to any financing plan. Understand the interest rates, repayment terms, and total payment requirements. Avoid unexpected costs by reading all terms carefully.

Take Advantage of Rebates and Tax Credits

Energy-efficient HVAC systems often qualify for utility rebates and federal tax credits. These incentives can significantly reduce the overall cost of your system.

Eligible tax credits include:

Heat Pump Tax Credit: Up to $2,000
Ductless System Tax Credit: Up to $2,000
Furnace Tax Credit: Up to $600
Air Conditioner Tax Credit: Up to $600

These credits apply to qualifying units purchased and installed through 2032. Additionally, utility companies may offer rebates specific to your area. Check out our rebates, savings, and offers page for more details.

Looking to save even more? Many Missouri utility providers offer rebates when you upgrade to qualifying high-efficiency HVAC systems. Programs vary by provider, but customers served by Springfield City Utilities, White River Valley Electric Cooperative, Spire Energy, Webster Electric Cooperative, Ozark Electric, and Liberty may be eligible for rebates that can significantly reduce the upfront cost. Be sure to check with your local utility company or visit our Rebates & Offers page for the latest details.

Rebate and Tax Credit Disclaimer: Rebate amounts and availability vary by utility provider and system eligibility. Federal tax credits apply only to qualifying HVAC systems installed in a primary residence and must be claimed using IRS Form 5695. Please consult your utility provider or a tax professional to confirm eligibility and current program guidelines.

HVAC Financing Options

Here are four common ways to finance your HVAC system replacement:

1. Personal Loans

Personal loans are available from banks, credit unions, and online lenders. Interest rates and loan terms vary based on credit score, loan amount, and lender policies.

Pros: No collateral required, quick approval.
Cons: Higher interest rates than secured loans; may include fees.

2. Home Equity Loan

A home equity loan uses the value of your home as collateral. This option typically offers a fixed interest rate and is best for those with substantial home equity.

Things to Watch For:

Competitive rates from different lenders
Closing costs and fees
The risk of foreclosure if payments are missed

3. HELOC (Home Equity Line of Credit)

Similar to a home equity loan, a HELOC allows you to borrow against your home’s value but works like a revolving line of credit.

Things to Watch For:

Adjustable interest rates
Real estate market fluctuations
Potential foreclosure risks

4. Financing Through SS&B Heating & Cooling

We offer convenient financing options through our trusted lending partner.
To see current promotions, estimated monthly payments, and full disclosure terms, visit our HVAC Financing page or give us a call at 417-580-9905

Disclaimer: Financing is subject to credit approval and provided through our lending partner. Terms, rates, and monthly payment estimates may vary. For current offers, full disclosures, and example payment schedules, please visit our HVAC Financing page or contact us directly.

Additional Considerations

Replacing both an air conditioner and furnace with a matched system improves energy efficiency and can lower utility bills, making your investment even more valuable over time.

At SS&B Heating & Cooling, we’ve proudly served homeowners for over 55 years. Contact us today to learn more about our financing options and energy-efficient Trane systems. We're here to help you stay comfortable year-round! ~ The SS&B Team