IAQ Works

HVAC Financing for IAQ Upgrades

Many homeowners are looking to invest in indoor air quality upgrades, but require HVAC financing to do so. So, how does it work?

Table of Contents

If you’re looking to replace your existing HVAC system or various parts in order to improve indoor air quality, you’re not alone. Upgrading (or starting from square one) is a daunting process, but totally worth it! One of the most important questions homeowners ask is “How much should a new HVAC system cost?” Today, we are going to answer that question! We will also address several other frequently asked questions such as, “How does HVAC financing work?” Let’s get started. 

HVAC System: Whether you’re in the process of upgrading, or you’ve already upgraded your HVAC system, don’t forget about maintenance! Check out this article for helpful tips and tricks →

How Much Should a New HVAC System Cost? 

So, you’re replacing your old HVAC system and you’d like to know how much everything is going to cost. You’ve come to the right place! You’ll find a plethora of prices scattered across the Internet if you decide to research the topic. Fortunately, we’ve done the research and we’ve narrowed down the answers. 

When looking at the whole picture, you’ll find that replacing your HVAC system costs anywhere from $5,000 to $10,000. These figures include removal, disposal and installation. And, they may vary dependending on brand, size of the unit and size of the home. Yes, the cost of replacing your HVAC system will vary depending on the size of your home. In other words, the cost of installation for a two-story home with five bedrooms will exceed the cost for a one-story home with three bedrooms. This is a result of the cost of installation per square foot.

Perhaps you don’t need to replace your HVAC system, but you’d like to replace one or more parts to achieve better indoor air quality. As an example, let’s review the cost of replacing a furnace. 

According to Home Advisor, replacing a gas furnace costs anywhere from $3,800 to $10,000. Whereas installing a geothermal furnace costs anywhere from $12,000 to $30,000, according to Earth River Geothermal. While replacing a gas furnace is significantly more affordable for most homeowners, going the extra mile will provide you with better indoor air quality. 

You’ll find that installing new equipment that benefits indoor air quality is generally more expensive than replacing old equipment that contributes to poor indoor air quality. That’s the cost of doing business! 

Do Hvac Systems Go on Sale? 

Many homeowners want to know when they should replace their HVAC system. One word, “off-season”. Why should homeowners replace their HVAC system (or various parts) during the off-season? HVAC companies are more likely to offer deals during this time. And, you won’t be inconvenienced by weeks of waiting for parts to arrive and installation to be completed. 

Generally speaking, the weather is less severe during the spring and fall. Thus, homeowners rely on their air conditioning and heating units less frequently. When business is slow, as it is during these months, HVAC companies don’t sell as many units or parts. And, they don’t perform repairs or maintenance at the same rate that they do during winter and summer. That being said, the cost of equipment and installation is lower during the spring and fall. HVAC companies want to sell products quickly so that they don’t sit on the shelf. And the best way to do that is to offer deals. 

Purchasing an HVAC system during the winter or summer will surely result in higher costs. And, it may result in longer wait times. HVAC technicians are most needed during these months, meaning you’ll have to wait an unusual amount of time for repairs to be made or installation to be completed. Meanwhile, you’ll be subject to the sweltering sun or the freezing snow. 

How Does HVAC Financing Work?

Now that we’ve discussed the cost of units and parts, as well as the best time to buy them, you’re probably wondering how HVAC financing works. Well, there are a few ways to go about financing including HVAC company financing options, government assistance as well as tax credits and rebates. 

HVAC Company Financing Options

The company you are purchasing a unit or parts from may or may not offer HVAC financing options. If they do, you will receive a loan from a third-party lender pending approval. Examples of third-party lenders include Greensky and Ally. 

Government Assistance

There are two loans that homeowners may qualify for when seeking HVAC financing options: an Federal Housing Administration (FHA) Title 1 loan and an FHA 203(k) loan. According to LendingTree, an FHA Title 1 loan helps “low- to moderate-income homeowners finance critical home improvements if they don’t otherwise qualify for a traditional home equity loan.” On the other hand, an FHA 203(k) loan helps homeowners finance the purchase and rehabilitation of a home with a single mortgage.” 

Tax Credits And Rebates

Through ENERGY STAR, homeowners may receive tax credits for heat pumps, air conditioners, gas powered boilers, gas and oil furnaces, gas water heaters, biomass stoves and advanced main air circulating fans. These are known as the Nonbusiness Energy Property Tax Credits. 

In order to qualify for these tax credits, this equipment “must be placed in service in an existing home which is your principal residence by December 31, 2021.” It’s important to note that new construction and rentals do not apply. The tax credit for each piece of equipment varies from “10% of cost up to $500 or a specific amount from $50-$300.” 

With regard to rebates, homeowners should research manufacturer rebates. Visit the manufacturer’s website and select the unit or parts you’d like to purchase. Oftentimes, rebates can be combined with other deals. This makes for great savings! 

HVAC Loans

We briefly mentioned loans when discussing HVAC financing, now it’s time to dive deeper. Homeowners wondering what HVAC loans are, you’re not alone! HVAC loans are hardly different from any other type of loan. They exist to help you purchase a unit or parts with minimal financial stress. It’s important to note that a HVAC loan is a personal loan, and most personal loans are unsecured. (Unsecured loans do not require collateral.) In order to receive a HVAC loan, you must qualify. Qualification is based on your credit score, income and debt. Essentially your financial history. 

Once you qualify for the loan, you will receive all of the money at once. Thus, it is important to know how much money you’ll actually need. You’ll have to repay the loan over time with fixed monthly installments. Annual percentage rates (APRs) and fees may apply, and these figures vary greatly depending on the loaner and the loanee. When considering your options, you’ll want to find the lowest APR possible, as it’s the cheapest option. 


You qualify for an HVAC loan of $1,000 at a 1% interest rate over a one year term. Your monthly payment would be $84 and you would pay $5 in total interest over the life of this loan. 

HVAC Financing Made Easy

Homeowners shouldn’t have to struggle to understand how HVAC financing works. That’s why IAQ.Works created this comprehensive guide for homeowners looking to finance indoor air quality upgrades. Improving indoor air quality on a budget shouldn’t be difficult! Knowing the who, what, when, where, why and how of HVAC financing will save you time, energy and money in the long run.

Sensibo Elements

Smart Indoor Air Quality Monitor

Sensibo Elements detects harmful airborne contaminants in your air.

Talk to a Qualified Local IAQ Professional
Contact Information