HVAC systems are crucial to keeping your home comfortable, especially during the heat of summer. Not only does your HVAC system control the temperature, but it also helps control your home’s humidity levels.

While a functioning HVAC system is non-negotiable, it’s important to acknowledge they can often come with a significant price tag. The cost of installing a new heating and cooling system can average $6,000 but get as high as $9,500, so it’s important to understand your options for HVAC financing.

HVAC loans are typically unsecured personal loans from a bank, but you may find other options from the manufacturer or government. Lenders base your loan amount, interest rate, and loan terms on your credit score and debt-to-income ratio. Your credit score shows how well you manage your liabilities, and your DTI measures your total monthly debts to your monthly income.

We’ve compiled a list of different options to help with the cost of a new HVAC system to help you make an informed decision.

Top Rated Companies Offering HVAC Financing in Wilmington, NC

Now that we’ve touched on how crucial it is to have dependable HVAC services in Wilmington, let’s take a closer look at the top-rated HVAC companies offering financing in your area. Half the battle when it comes to finding great financing options is finding a reputable company that will complete the work with little to no issues. The following companies are known for their trustworthiness and reliability: 

1) ARS/Rescue Rooter

• MyHomePros TrustScore™: 10/10 (Exceptional)
• Google Rating: 4.8/5
• Years in Business: 50
• Services Offered: AC Repair, AC Installation, Heating System Repair, Heating System Installation, Indoor Air Quality, HVAC Maintenance
• Hours of Operation: 7 Days/Week, 24 Hours/Day
• Address: 200 N. Green Meadows Drive, Ste. A Wilmington, North Carolina 28405

2) James & Son Heating & Cooling, Inc.

• MyHomePros TrustScore™: 9.5/10 (Exceptional)
• Google Rating: 5/5
• Years in Business: 25
• Services Offered: AC Service, AC Repair, AC Installation, Heating Service, Heating Repair, Heating Installation, HVAC Installation, HVAC Replacement, HVAC Repair, Commercial HVAC Services, HVAC Maintenance
• Hours of Operation: M-F, 08:00AM – 05:00PM | Sat – Sun, Closed
• Address: 5310 Carolina Beach Rd., Wilmington, NC 28412

3) Anderson Air

• MyHomePros TrustScore™: 9.3/10 (Exceptional)
• Google Rating: 4.8/5
• Years in Business: 11
• Services Offered: AC Services, AC Repair, AC Installation, Heating Services, Heating Repair, Heating Installation, HVAC Installation, HVAC Replacement, HVAC Repair, HVAC Maintenance
• Hours of Operation: M-F, 07:30AM – 05:00PM | Sat – Sun, Closed
• Address: 419 Raleigh St. D, Wilmington, NC 28412

T-4) Efficient Air Heating & Cooling

• MyHomePros TrustScore™: 9/10 (Exceptional)
• Google Rating: 5/5
• Years in Business: 8
• Services Offered: AC Services, AC Repair, AC Installation, Heating Services, Heating Repair, Heating Installation, HVAC Installation, HVAC Replacement, HVAC Repair, HVAC Maintenance, Duct Cleaning, Ductwork
• Hours of Operation: M-F, 07:00AM – 05:00PM | Sat – Sun, 08:00AM – 05:00PM
• Address: 6726 Netherlands Dr #800, Wilmington, NC 28405

T-4) Green Dot Heating & Air

• MyHomePros TrustScore™: 9/10 (Exceptional)
• Google Rating: 4.8/5
• Years in Business: 20
• Services Offered: AC Services, AC Repair, AC Installation, Heating Services, Heating Repair, Heating Installation, HVAC Installation, HVAC Replacement, HVAC Repair, HVAC Maintenance, Furnace Repair, Furnace Installation, Heat Pump Repair, Heat Pump Replacement, AC Maintenance, Indoor Air Quality, Ductless Mini Splits, Smart Thermostats, Ductwork
• Hours of Operation: 7 Days/Week, 06:00AM – 09:00PM
• Address: 204 Antilles Court, Wilmington, NC 28405

6) Salt Air Inc.

• MyHomePros TrustScore™: 8.8/10 (Very Good)
• Google Rating: 4.8/5
• Years in Business: 13
• Services Offered: AC Services, AC Repair, AC Installation, Heating Services, Heating Repair, Heating Installation, HVAC Installation, HVAC Replacement, HVAC Repair, HVAC Maintenance, Air Duct Cleaning, Dryer Vent Cleaning, Ductless AC Installation
• Hours of Operation: 24 Hours/Day, 7 Days/Week
• Address: 3306 Kitty Hawk Rd #100, Wilmington, NC 28405

7) Michael & Son Services

• MyHomePros TrustScore™: 8.5/10 (Very Good)
• Google Rating: 4.7/5
• Years in Business: 45
• Services Offered: AC Services, AC Repair, AC Installation, Heat Pump Services, Heat Pump Repair, Heat Pump Installation, HVAC Installation, HVAC Replacement, HVAC Repair, Furnace Repair, Furnace Replacement, Furnace Installation, HVAC Maintenance, Ductless AC Installation
• Hours of Operation: 24 Hours/Day, 7 Days/Week
• Address: 813 S 16th St, Wilmington, NC 28401

8) Fulford Heating & Cooling

• MyHomePros TrustScore™: 8/10 (Very Good)
• Google Rating: 4.8/5
• Years in Business: 50
• Services Offered: AC Services, AC Repair, AC Installation, Heat Pump Services, Heat Pump Repair, Heat Pump Installation, HVAC Installation, HVAC Replacement, HVAC Repair, Furnace Repair, Furnace Replacement, Furnace Installation, HVAC Maintenance, Indoor Air Quality, Home Automation, Attic Insulation, Crawl Space Encapsulation, Coil Coating
• Hours of Operation: 24 Hours/Day, 7 Days/Week
• Address: 7225 Market St, Wilmington, NC 28411

9) Brian Williamson’s Heating and Cooling

• MyHomePros TrustScore™: 7.5/10
• Google Rating: 5/5
• Years in Business: 21
• Services Offered: AC Services, AC Repair, AC Installation, Heating Services, Heating Repair, Heating Installation, HVAC Installation, HVAC Replacement, HVAC Repair, HVAC Maintenance, Furnace Repair, Furnace Installation, Heat Pump Repair, Heat Pump Replacement, AC Maintenance, Indoor Air Quality, Smart Thermostats
• Hours of Operation: 24 Hours/Day, 7 Days/Week
• Address: Wilmington, NC

T-10) Aire Serv Coastal Carolina

• MyHomePros TrustScore™: 7/10
• Google Rating: 4.8/5
• Years in Business: 35
• Services Offered: AC Services, AC Repair, AC Installation, Heating Services, Heating Repair, Heating Installation, HVAC Installation, HVAC Replacement, HVAC Repair, HVAC Maintenance, Furnace Repair, Furnace Installation, Heat Pump Repair, Heat Pump Replacement, AC Maintenance, Indoor Air Quality, Ductless Mini Splits, Smart Thermostats, Ductwork, Dehumidifier Repair and Replacement
• Hours of Operation: M-F, 08:00AM – 05:00PM | Sat – Sun, Closed
• Address: 5041 New Centre Dr Suite 213, Wilmington, NC 28403

T-10) Phillips Air Care Heating and Cooling

• MyHomePros TrustScore™: 7/10
• Google Rating: 4.9/5
• Years in Business: 50
• Services Offered: AC Repair, AC Installation, Heating System Repair, Heating System Installation, Indoor Air Quality, HVAC Maintenance
• Hours of Operation: 7 Days/Week, 07:30AM – 08:00PM
• Address: 113 Portwatch Way # 104, Wilmington, NC 28412

Pros and Cons of HVAC Financing

All financial decisions have pros and cons, including HVAC financing. Understanding the benefits and drawbacks of financing your HVAC system can help you choose the best option for your needs. 

Pros of HVAC Financing 

Reduces or eliminates the upfront capital needed: Financing to purchase an air conditioner or furnace can provide funds you don’t have. Even if you have savings, you can leave the funds for other emergencies, such as future HVAC repairs or home maintenance needs.

Inreased purchase power for energy-efficient units: Energy-efficient systems have a higher SEER rating (Seasonal Energy Efficiency Ratio). This means they use less energy over time, which may save you money. Financing your HVAC system may allow you to afford a unit with a higher SEER, saving you money on energy bills that you can use to cover the interest on the loan.

Pro tip: To ensure your unit is energy efficient, look for the ENERGY STAR label from the US EPA.

Cons of HVAC Financing 

Interest costs: When you borrow a loan, the lender charges interest, increasing your system’s total cost. For example, if you borrow $5,000 at 8% interest for 36 months, you’ll pay $156.68 per month and a total of $640.55 in interest, increasing your system’s cost by $640.55.

Locked into a monthly payment: Personal and home equity loans require a fixed monthly payment, which increases your monthly liabilities.

Types of HVAC Financing

Homeowners have several options when financing a new heating and air conditioning system. Here’s how the different options compare:

1. Traditional Loans

A personal loan is an unsecured loan from a lender. You may find opportunities at your local bank, or you can find online lenders who have more flexible guidelines. These loans offer funds in one lump sum, and you can use the funds for any purpose, including updating your HVAC system.

Personal loans have a fixed interest rate and payment. They usually have terms between one and seven years, depending on your qualifying factors. Some lenders let you repay the loan early without paying a penalty, so always read the fine print to see if this is possible. If allowed without a penalty, you can pay more than required if you have the money available. This may save you money on interest by paying the balance down faster.

2. Manufacturer or Retail Financing

Some manufacturers or retailers offer financing options to help with the cost of installing a new air conditioner or furnace. For example, Home Depot offers a Home Depot Consumer Credit Card or Home Depot Project Loan with financing for up to 120 months.

Some manufacturers like Lennox, Trane, and Carrier also offer financing or they work with HVAC financing companies. Each company offers different terms and incentives. Compare your options to see which has the most affordable monthly payment and the lowest overall cost.

Home Equity Loans or HELOCs

If you have equity in your home, you may be able to use it to purchase a new HVAC unit. Home equity loans are lump-sum loans that use your house as collateral. If you don’t make your payments, the lender could begin foreclosure.

A HELOC (home equity line of credit) is also a loan that uses your home’s equity, but instead of receiving the funds in one lump sum, you get a line of credit. You can draw the funds as needed and use them for purchases. During the draw period (ten years), you can use the funds as needed, making interest-only payments if desired. At the end of the draw period, you repay the principal (the amount borrowed) with interest to repay any remaining funds withdrawn.

Government Loans

The government offers many incentives to make your home more energy efficient, including installing HVAC systems with high SEER ratings. These options aren’t typically loans but incentives or rebates. Check with your state energy office first to determine your eligibility for grants or programs before applying for a loan.

The federal government also offers income tax credits of up to $3,200 to increase your home’s energy efficiency. When you file your taxes, you claim the tax credit and can use the refund to pay off any loans you took to cover the cost.

If purchasing or refinancing a home, you may also qualify for the Freddie Mac GreenCHOICE mortgage. This loan allows financing up to 15% of the home’s after-repaired value (with modifications completed) for energy-efficient HVAC systems or other energy-saving upgrades.

How To Get HVAC Financing for Bad Credit

If concerns about securing financing arise due to past financial challenges and credit issues, rest assured that there are options available. As with any financial decision, it’s crucial to assess the available options thoroughly and consider the overall cost. 

Some options include:

A no-interest loan from a utility company: Check with your local utility company to see if they offer 0% financing on energy-efficient systems.

Secured loan: A secured loan uses collateral the lender can repossess if you don’t pay. This often compensates for a lower credit score and may increase your chances of approval. Examples include a home equity loan and a personal loan with your car or another asset as collateral.

Payday alternative loan: Approval for a payday alternative loan from a local credit union isn’t based on credit score but on your relationship with the financial institution. They usually have a 6-month repayment term. However, payday alternative loan amounts are somewhat low and are best suited for HVAC repairs, not replacement.

Lease-to-purchase: If you don’t qualify for financing or don’t want to pay the high APYs, look for companies offering lease-to-purchase options. Local HVAC companies and some third parties may offer this option, but read the fine print to determine if they charge interest or fees.

Factors to Consider When Choosing HVAC Financing

Choosing the best HVAC financing can be an overwhelming process. Here are the key factors to consider: 

Loan Amount: A new HVAC unit can cost as much as $9,500 or more, so it’s important to find a loan that will cover the cost or the difference between the amount you have to put down and the purchase price.

Interest Rates and Fees: Consider a lender’s interest rate plus any fees charged. The APR is an annualized cost that includes interest and fees and is a good way to compare loans. The loan with the lowest APR is usually the best option. 

Credit Requirements: Each loan has different credit requirements. Check your credit for free, then compare your qualifications to what lenders require to choose the best HVAC financing option.  

Terms: The loan term determines your monthly payment and total interest paid. The longer you borrow money, the higher your overall costs. Choose a term with a payment you can afford while minimizing your interest costs.

Conclusion

In conclusion, the realm of HVAC financing offers an array of choices tailored to various needs. Whether you prioritize flexibility, affordability, or accessibility, there’s an option suited best for you. 

By evaluating factors such as interest rates, repayment terms, and eligibility criteria, you can make an informed decision that aligns with your financial goals. As you embark on your journey to upgrade your HVAC system, explore all of your options to ensure both comfort and financial stability in the long run.

FAQs

What credit score do you need to finance an HVAC system?

The credit score required for an HVAC system depends on the type of loan you want. Personal loan lenders often require good credit, but many have options for borrowers with scores between 560 – 660. Credit cards and home equity loans typically require 660+ credit scores, but other financing options, like payday alternative loans, don’t focus on a credit score.

How does financing work with HVAC?

HVAC financing differs by loan type. Unsecured personal loans provide funds in a lump sum, and you make regular monthly payments that include interest to repay it. Mortgage loans add the cost of the HVAC financing into the mortgage, and retail or manufacturer financing works like personal loans with fixed monthly payments with interest.

Is it better to finance or pay cash for a furnace?

If you have the capital to pay for a furnace upfront, you’ll avoid paying interest charges. However, if you can find 0% APR financing, you can spread out the payments and not increase your total costs. If not, financing a furnace is viable; just be aware of the interest rates and fees.

What is the average cost to run a furnace?

In North Carolina, the average monthly gas bill is $63. This cost may increase during colder months but averages $63 per month over 12 months.

Is it cheaper to finance through a bank?

Banks sometimes have attractive financing options, but you may find more incentives and lower APRs on retail or manufacturer financing. You may also be eligible for specific tax credits that lower out-of-pocket costs.

Sources:

• Experian
• Forbes
• Energy Star
• Nerd Wallet
• Lending Tree

Additional HVAC Resources Near Wilmington, NC

• Top Furnace Repair Companies in Wilmington, NC
• HVAC Filter Replacement in Wilmington, NC
• HVAC Maintenance Guide for Wilmington, NC