The HVAC system is important in every home. It helps improve the air quality inside your home, making it breathable for humans and providing comfort. Having an HVAC system will also help you improve your home’s energy efficiency and have fewer repairs.
You must also remember to upgrade your HVAC system every 10-15 years. It would be best if you changed your old HVAC before it started to break down. However, many individuals couldn’t upgrade their HVAC due to insufficient funding. It is one of the vital upgrades you need to perform to ensure that you will continue living comfortably in your home.
If you are one of those individuals who need to upgrade their HVAC system but are short on funds, here are some suggestions on how to acquire additional money to start the upgrade as soon as possible.
Apply for a Reverse Mortgage
The first option you can do is to get a reverse mortgage to fund any HVAC projects like repairs and upgrades. However, this option only applies if you own your home or any other properties and only if you are 62 years old and above. It is also the best option for retired individuals who want to upgrade their HVAC system but have limited budgets.
Check out with your local bank and see if they offer such an option for you. For example, suppose you live in Australia. In that case, you can contact Gateway Bank to learn more about reverse mortgages, as they are one of the financial institutions offering this funding option.
To better understand what a reverse mortgage is, it is a type of loan designed for homeowners at the age of 62 and above who have already fully paid their mortgage. This loan allows the homeowner to borrow a portion of their property’s equity.
Acquire a Personal Loan
Another loan you can get to finance your HVAC system upgrade is a personal loan. A personal loan can be acquired for whatever purpose, including an HVAC system upgrade. There are two types of personal loans that you can get to help you finance your HVAC upgrade, which will depend on your finances and creditworthiness.
The first option you have is the unsecured personal loans that are best for individuals with a good credit score and a stable source of income. Meanwhile, the unsecured personal loan option is the best you can get if you have a low credit score. However, the lender will require you to offer collateral that acts as a security for the lender in case you default.
Check Out Some Loan Programs
You can also use loan programs like the Federal Housing Administration’s (FHA) loan program, where you can borrow up to $7,500. You don’t also need to make your home collateral.
Instead, you must have home equity to become eligible for the said loan program.
Aside from the FHA loan, you can also check some state-level programs. For example, each state offers its respective energy tax credit program. This program aims to help homeowners fund their HVAC upgrade or even install a new one, especially those who plan to convert their HVAC system to renewable energy.
Contractor Financing
When choosing an HVAC contractor, you should ask first if they offer contractor financing. Some contractors offer to finance their customers who need extra funds to do a complete HVAC upgrade. These contractors will arrange the financing with certain lenders they are in connection with. In this set-up, you as the homeowner, the contractor, and the lender will benefit from this arrangement.
This can be a great option if you already have a contractor that you have worked with before. But if you still haven’t found a trustworthy contractor to work on your HVAC upgrade, you should do your research by reading all the prints and the contract before signing it to avoid being scammed.
It would be best if you also discussed this arrangement with the contractor before agreeing to hire them. It will save you time searching for an excellent financing solution for your HVAC funding needs.
Check Out Manufacturing Financing
Aside from contractor financing, you might also want to consider checking for manufacturer financing. Manufacturers want to sell their products. It is why some of them would be happy to offer an installment basis of their HVAC equipment for homeowners like you who have a limited budget.
Manufacturer financing can be carried out with the use of a credit card. Doing so can help you acquire the most affordable monthly payment for purchasing the new HVAC system. It would be best if you talked to your local HVAC manufacturer to learn more about this offer to start deciding whether it is the best financing option for you or not.
Start Upgrading Your HVAC Now!
With all the funding options we suggested in this article, you will surely find the best way to fund your HVAC system upgrade without any problems. So, don’t hesitate to start planning the upgrade of your HVAC system by starting to pick the best funding solution for your HVAC upgrade needs.
