SoFi Personal Loan: Best for HVAC loans
Qualifications:
Key Facts:Qualified borrowers will find few lenders better than SoFi, thanks to zero fees and thoughtful perks like unemployment protection and free financial advising.
Qualifications:- Must be at least 18 years old in most states.
- Must be a U.S. citizen, permanent or non-permanent resident, including DACA recipients and asylum seekers.
- Must be employed, have sufficient income from another source, or have an offer of employment to start within the next 90 days.
- Acceptable income sources: Employment, spouse’s income, retirement, alimony, child support, Social Security payments and disability benefits.
Available Term Lengths:2 to 7 yearsFees:- Origination fee: 0% to 7%.
- Late fee: None.
LightStream: Best for HVAC loans
Qualifications:
Key Facts:LightStream targets strong-credit borrowers with no fees and low rates that vary based on loan purpose. It offers high borrowing amounts for financing costly medical procedures or consolidating medical debts.
Qualifications:- Minimum credit score: 660, but can vary depending on the loan purpose and amount.
- Maximum debt-to-income ratio: 50%.
- Minimum credit history: 3 years.
- Income sources accepted: Employment, retirement, rental income, alimony, child support, Social Security payments and disability benefits.
- Must be a U.S. citizen or permanent resident who is at least 18 years old and has a U.S. bank account.
Available Term Lengths:2 to 7 yearsFees:- Origination fee: None.
- Late fee: None.
LendingClub: Best for HVAC loans
Qualifications:
Key Facts:LendingClub loans have limited term lengths, but you can add a co-borrower to help your chances of qualifying for a lower rate.
Qualifications:- Minimum credit score: 600; average borrower score is above 700.
- Minimum income: None; lender requires proof of income. Borrower average is $100,000 per year.
- Maximum DTI: 40%.
- Minimum credit history: 36 months and two accounts.
Available Term Lengths:2 to 6 yearsFees:- Origination fee: 0%-8%
- Late fee: 5% of payment or $15 after 15-day grace period.
- Insufficient funds: $15.
Upstart: Best for HVAC loans
Qualifications:
Key Facts:Upstart personal loans offer fast funding and may be an option for borrowers with low credit scores or thin credit histories. Upstart is a solid financing choice for large purchases.
Qualifications:- Must be a U.S. citizen or permanent resident living in the U.S.
- Must be at least 18 years old in most states.
- Must have a valid email address and Social Security number.
- Must have a full- or part-time job, a full-time job offer starting within six months or another source of regular income.
- Must have a personal bank account at a U.S. financial institution with a routing number.
- No bankruptcies in the last 12 months.
- No current delinquent accounts on your credit reports.
- Fewer than six hard inquiries on your credit report in the last six months, excluding student, auto and mortgage loans.
- Minimum credit score: None.
- Minimum annual income: $12,000.
Available Term Lengths:3 to 7 yearsFees:- Origination: 0% to 12%.
- Late fee: 5% of the unpaid amount or $15, whichever is greater.
- Insufficient funds fee: $15.
Upgrade: Best for HVAC loans
Qualifications:
Key Facts:Upgrade personal loans offer multiple rate discounts and direct payment to creditors. A low minimum credit score requirement makes the perks stand out even more.Qualifications:- Minimum credit score: 580.
- Minimum number of accounts on credit history: One account.
- Maximum debt-to-income ratio: 75%, including mortgage payments.
- Minimum length of credit history: Two years.
- Minimum income requirement: None. Lender accepts income from alimony, retirement, child support, Social Security, disability benefits and other sources.
Available Term Lengths:2 to 7 yearsFees:- Origination fee: 1.85% to 9.99%.
- Late Fee: $10.
- Failed payment fee: $10.
Universal Credit: Best for HVAC loans
Qualifications:
Key Facts:Universal Credit personal loans have a low minimum credit score requirement, credit-building features and perks for debt consolidation. The lender charges high rates but offers autopay and debt consolidation discounts.
Qualifications:- Minimum credit score: 580.
- Minimum number of accounts on credit history: 1 account.
- Maximum debt-to-income ratio: 75%, including mortgage and the loan you’re applying for.
- Minimum length of credit history: 2 years.
- Minimum income requirement: None. Lender accepts income from alimony, retirement, child support, Social Security and other sources.
Available Term Lengths:3 to 5 yearsFees:- Origination fee: 5.25% to 9.99%.
- Late fee: Up to $10.
- Non-sufficient funds fee: $10.
SoFi Personal Loan: Best for HVAC loans
Qualifications:
Key Facts:Qualified borrowers will find few lenders better than SoFi, thanks to zero fees and thoughtful perks like unemployment protection and free financial advising.
Qualifications:- Must be at least 18 years old in most states.
- Must be a U.S. citizen, permanent or non-permanent resident, including DACA recipients and asylum seekers.
- Must be employed, have sufficient income from another source, or have an offer of employment to start within the next 90 days.
- Acceptable income sources: Employment, spouse’s income, retirement, alimony, child support, Social Security payments and disability benefits.
Available Term Lengths:2 to 7 yearsFees:- Origination fee: 0% to 7%.
- Late fee: None.
LightStream: Best for HVAC loans
Qualifications:
Key Facts:LightStream targets strong-credit borrowers with no fees and low rates that vary based on loan purpose. It offers high borrowing amounts for financing costly medical procedures or consolidating medical debts.
Qualifications:- Minimum credit score: 660, but can vary depending on the loan purpose and amount.
- Maximum debt-to-income ratio: 50%.
- Minimum credit history: 3 years.
- Income sources accepted: Employment, retirement, rental income, alimony, child support, Social Security payments and disability benefits.
- Must be a U.S. citizen or permanent resident who is at least 18 years old and has a U.S. bank account.
Available Term Lengths:2 to 7 yearsFees:- Origination fee: None.
- Late fee: None.
LendingClub: Best for HVAC loans
Qualifications:
Key Facts:LendingClub loans have limited term lengths, but you can add a co-borrower to help your chances of qualifying for a lower rate.
Qualifications:- Minimum credit score: 600; average borrower score is above 700.
- Minimum income: None; lender requires proof of income. Borrower average is $100,000 per year.
- Maximum DTI: 40%.
- Minimum credit history: 36 months and two accounts.
Available Term Lengths:2 to 6 yearsFees:- Origination fee: 0%-8%
- Late fee: 5% of payment or $15 after 15-day grace period.
- Insufficient funds: $15.
Upstart: Best for HVAC loans
Qualifications:
Key Facts:Upstart personal loans offer fast funding and may be an option for borrowers with low credit scores or thin credit histories. Upstart is a solid financing choice for large purchases.
Qualifications:- Must be a U.S. citizen or permanent resident living in the U.S.
- Must be at least 18 years old in most states.
- Must have a valid email address and Social Security number.
- Must have a full- or part-time job, a full-time job offer starting within six months or another source of regular income.
- Must have a personal bank account at a U.S. financial institution with a routing number.
- No bankruptcies in the last 12 months.
- No current delinquent accounts on your credit reports.
- Fewer than six hard inquiries on your credit report in the last six months, excluding student, auto and mortgage loans.
- Minimum credit score: None.
- Minimum annual income: $12,000.
Available Term Lengths:3 to 7 yearsFees:- Origination: 0% to 12%.
- Late fee: 5% of the unpaid amount or $15, whichever is greater.
- Insufficient funds fee: $15.
Upgrade: Best for HVAC loans
Qualifications:
Key Facts:Upgrade personal loans offer multiple rate discounts and direct payment to creditors. A low minimum credit score requirement makes the perks stand out even more.Qualifications:- Minimum credit score: 580.
- Minimum number of accounts on credit history: One account.
- Maximum debt-to-income ratio: 75%, including mortgage payments.
- Minimum length of credit history: Two years.
- Minimum income requirement: None. Lender accepts income from alimony, retirement, child support, Social Security, disability benefits and other sources.
Available Term Lengths:2 to 7 yearsFees:- Origination fee: 1.85% to 9.99%.
- Late Fee: $10.
- Failed payment fee: $10.
Universal Credit: Best for HVAC loans
Qualifications:
Key Facts:Universal Credit personal loans have a low minimum credit score requirement, credit-building features and perks for debt consolidation. The lender charges high rates but offers autopay and debt consolidation discounts.
Qualifications:- Minimum credit score: 580.
- Minimum number of accounts on credit history: 1 account.
- Maximum debt-to-income ratio: 75%, including mortgage and the loan you’re applying for.
- Minimum length of credit history: 2 years.
- Minimum income requirement: None. Lender accepts income from alimony, retirement, child support, Social Security and other sources.
Available Term Lengths:3 to 5 yearsFees:- Origination fee: 5.25% to 9.99%.
- Late fee: Up to $10.
- Non-sufficient funds fee: $10.
What are HVAC loans?
HVAC loans are unsecured personal loans that you use for the purchase or replacement of an HVAC system. Upon approval, you receive the loan in a lump sum and repay it in fixed monthly installments over a period of about two to seven years.
Qualifying for a personal loan primarily depends on your creditworthiness and finances. Qualified borrowers with high credit scores, stable income and little other debt receive the lowest rates and largest loan amounts.
Annual percentage rates on personal loans typically range from 6% to 36%, and loan amounts are $1,000 to $100,000. Many online lenders allow you to pre-qualify and see your personal loan rate and term before formally applying. Pre-qualifying doesn't affect your credit score.
» MORE: Pre-qualify on NerdWallet
HVAC loan example
For an excellent-credit borrower, a $7,000 loan with a two-year repayment term and 11.2% APR would require monthly payments of $327 and cost $7,846 including interest, according to NerdWallet’s home improvement loan calculator.
HVAC loan considerations
As with any home improvement purchase, it's good to compare multiple financing options. Here are things to consider about personal loans.
Loan amount: Personal loans are best for large, one-time purchases. You may not find a personal loan small enough to cover a repair that costs a few hundred dollars. Unlike with a line of credit, you borrow the funds all at once, so try to have a solid estimate on the HVAC system's cost before you sign a loan agreement.
APR and fees: APR, which is the loan's interest rate plus any fees the lender charges, is the best way to compare total costs of different loans. The loan with the lowest APR is the cheapest. Some lenders charge origination fees from 1% to 10% of the loan amount and deduct the charge from your loan before depositing the money into your account.
Repayment term: A longer repayment term on a personal loan means lower monthly payments, but you’ll pay more overall interest. Factor monthly payments into your budget to determine what amount you can manage over the loan's term.
Funding time: Pre-qualifying for a personal loan with an online lender can take minutes, and some lenders will fund a loan the same day you’re approved or the following business day.
HVAC financing alternatives
Emergency fund: While not technically a financing option, your emergency fund is made for expenses like a new HVAC system. Especially if temperatures outside are extreme, a broken AC or heating unit constitutes an emergency.
HVAC company financing: Some companies that sell and install HVAC systems also offer financing through third-party lenders, like Greensky or Ally. Rates and terms vary across contractors. Rolling your installation and payment plan together can be a convenient option if it's also the most affordable one.
0% interest credit card: Consumers with good or excellent credit (690 or higher FICO scores) may qualify for a credit card with a zero-interest promotional period. Be sure to pay off the balance during the interest-free term — usually 15 to 21 months — to avoid paying the card’s regular interest rate.
Government help: You may qualify for an FHA Title 1 loan, which can be used to make your home “basically more livable and useful,” according to the Department of Housing and Urban Development. Another option is refinancing your existing mortgage with an FHA 203(k) loan. These programs each have their own requirements and may prolong your installation’s timeline, but they could save you money.
Last updated on September 5, 2023
Frequently asked questions
Some companies that sell and install HVAC systems offer financing through a third-party lender. Rates and terms vary across contractors. Compare an HVAC company’s financing option with alternatives, like a personal loan or 0% APR credit card, to find the least expensive one.
The credit score you need for HVAC financing depends on the lender. In general, borrowers with good or excellent credit (690 or higher) are likely to qualify for financing through an HVAC company, a personal loan or a 0% APR credit card. Some lenders offer personal loans for bad credit (629 or lower FICO), but consumers with low credit scores combined with low income and high debt are unlikely to qualify. Lenders also consider information like your income and debt when deciding if you qualify.
How we chose the best personal loans
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Lenders reviewed
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Categories assessed
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Data points analyzed
Star rating categories
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Overall score
NerdWallet's HVAC Loans: Finance Your New HVAC System
- SoFi Personal Loan: Best for HVAC loans
- LightStream: Best for HVAC loans
- LendingClub: Best for HVAC loans
- Upstart: Best for HVAC loans
- Upgrade: Best for HVAC loans
- Universal Credit: Best for HVAC loans
