š¦ 1. Retailer or Manufacturer Financing
Many HVAC retailers (like The Furnace Outlet) and brands such as Goodman or MRCOOL offer in-house financing through partners like Affirm, Synchrony, or Wells Fargo.
Key Features:
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0%ā9.99% APR offers for qualified buyers
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Buy Now, Pay Later (BNPL) flexibility
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Soft credit check in some cases
š Synchrony Financial: HVAC Financing Overview
š 2. Utility Company Rebates & On-Bill Financing
Local utility providers often offer rebates for installing energy-efficient electric furnaces and on-bill financingāwhere you pay off the system through your monthly power bill.
Examples:
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Dominion Energy, Duke Energy, and PG&E offer programs
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Incentives vary by ZIP and AFUE rating
š DSIRE: Database of State Incentives for Renewables & Efficiency
šµ 3. Home Improvement Loans (Unsecured)
You can also apply for a personal loan to cover the furnace and installation, especially if you prefer flexibility in vendor selection.
Pros:
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No home equity required
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Quick approvals
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Fixed monthly payments
Cons:
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Higher interest rates (6%ā18% typical)
š NerdWallet: Best Personal Loans for HVAC
š§¾ 4. Tax Credits for Energy-Efficient Systems
Under the Inflation Reduction Act (IRA), homeowners may qualify for:
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Up to $600 in tax credits for ENERGY STAR-certified electric furnaces
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Even more if part of a heat pump hybrid system
š ENERGY STAR: 25C Tax Credit Guide (2025)
š ļø 5. FHA Title I Home Improvement Loans
Backed by the federal government, FHA Title I loans help homeowners pay for upgrades like furnace replacements without refinancing their mortgage.
Terms:
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Up to $7,500 unsecured (or $25,000 with property lien)
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Fixed interest
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No minimum credit score (though lender discretion applies)
š§® Which Option Is Best for You?
| Financing Type | Credit Required | Interest Rate | Max Amount | Ideal For |
|---|---|---|---|---|
| In-house Retail Financing | ā MediumāGood | LowāMed (0ā9.99%) | Varies | Fast approval, easy checkout |
| Utility Rebates | ā No | N/A | $50ā$2,000+ | Lower upfront costs |
| Personal Loan | ā Good | 6%ā18% | Up to $50,000 | High flexibility |
| Tax Credits | ā No | N/A | $600ā$2,000 | Income-qualified homeowners |
| FHA Title I | ā FairāGood | Fixed (5ā10%) | $7.5Kā$25K | Long-term structured payments |
š Start With a Quote
Explore our full Electric Furnace Collection and reach out to learn about financing options we support through Affirm and Synchrony.
In the next topc you will read about: Electric Furnace Product Reviews & Testimonials (2025 Update)
