Can I Finance a New HVAC System? Yes!

Can I Finance a New HVAC System

Investing in a new heating and air conditioning system is for many people, an unplanned expense. Fox Family Heating and Air Conditioning has several choices if you need to finance a new HVAC system.

When you choose to finance your HVAC system replacement using one of Fox Family Heating and Air Conditioning lenders, you will get a superior product, quality installation, and unmatched warranties, at a reasonable monthly payment that fits your budget.

Synchrony Bank

Our most popular choice to finance a new HVAC system is traditional financing through Synchrony Bank. Synchrony allows you to choose the interest rate and payment term you prefer from four different options, including an option for interest-free financing for 18 months. The application process is quick and easy, with instant credit decisions.

The process involves two steps. First, you will walk through a simple credit application with the technician, and once approved, Synchrony will email you a financing agreement with the payment terms you choose, for your acknowledgment. This is all handled electronically, and the entire process takes as little as ten minutes.

There is no minimum requirement for credit, so this option is not limited to new systems – it can also be used to finance those unexpected HVAC repairs.

SMUD Financing

As a registered SMUD contractor, we can assist with your application for a secured, home performance installment loan through SMUD. They offer 6.99% APR for a 10-year loan to finance your new HVAC system. In order to apply for SMUD financing, you must be a current SMUD customer with a clean payment history and have no bankruptcy or foreclosures in the past 36 months.


This program allows you to make energy-efficient improvements to your home using PACE (Property Assessed Clean Energy) financing.  PACE pays 100% of your project’s costs.  You repay these over a term of up to 20 years via an assessment on your property tax bill.   Approval is not based on your credit score, but rather the equity in your home. The requirements are a minimum of 15% equity in your home, no bankruptcy or foreclosures in the past 36 months, and you must be current on your mortgage and property tax. In some cases, you can get payment deferment for up to 18 months with this program.   The minimum purchase amount is $5,000.

Contact Fox Family today to get started!

The HVAC Industry Continues to Experience the Effects of COVID-19

HVAC and covid 19 Featured image

HVAC Supply Pricing Continuing To Rise

Folks who purchased their new AC system at the beginning of the year should be singing their praises.  The industry continues to see rising costs of materials combined with a shortage of workers.  

A colleague of mine said, “When something like COVID interrupts any part of the supply chain system, including how those parts get shipped from there to here. We’re experiencing a weird dynamic right now with worldwide stress, but also with a high demand for our products and services. Also, considering the low numbers of employees working in these factories, the only thing to expect is chaos. The scenario is creating an almost panic for our industry to perform.”

Halfway through the summer of 2021, things haven’t gotten any better.  We continue to be frustrated.  Selling equipment is tough enough, but to get the okay from a customer and potentially not have their equipment is challenging.  It’s the toughest thing I’ve had to deal with since becoming a contractor in 2015.

What happens is, when we order our equipment online in the past, we could see the inventory levels of our distributor.  We would look up a particular furnace that matches up with a condenser and evaporator coil and see that they had 20 of those furnaces.  Now when we win a job, we have to submit the order and wait for the distributor to get back to us and let us know if they have the equipment to fill that order.  If they don’t, we have to call the customer back and let them know.

On a few occasions this year, we have had to offer the customer an entirely different brand than Trane, which has always been our equipment of choice.  This has worked out for those customers, and we appreciate them being flexible enough to understand.  

Every HVAC contractor in the United States is dealing with this equipment situation.  Manufacturers say they can’t get equipment out fast enough for the rising demand for new equipment.  This has created the highest rate of price increase we’ve seen in a very long time.  Each year, we typically see a 4% to 6% increase in the cost of equipment.  

attic furnace unit

This year we’ve already seen a 21% increase in that same equipment. This has resulted in your basic $10,000 HVAC system increasing by $2,000 in just one year.  Higher-end equipment has grown exponentially.

With a few to several more months of rapid inflation in the world’s economy, we continue to brace for whatever price increases we may see. These price increases ultimately get passed along to our customers. 

So, like we said this time last year, as we’re getting close to the end of the hottest time of the year, local suppliers should have an easier time restocking their shelves as demand goes down.  Winter months are relatively mild around the Sacramento Valley, so that we won’t get that high intensity of equipment change-outs experienced in other areas of the world with longer, colder winters.

Let’s keep our fingers crossed America get’s back to normal soon.  People need heating and air conditioning. It’s not a luxury for some people.  With continued demand and lower inventory of equipment and the parts that make that equipment up, inflation continues, stressing this contractor out.  

Stay safe and follow CDC guidelines so we can get through this sooner than later. Thanks so much for stopping by, and we’ll see you next time.

Our Financing Options That Work – Fox Family Heating & Air

Financing Options - Fox Family Heating & Air Conditioning

Purchasing a new HVAC system is one of the most significant investments you’ll make for your home.  But I wanted to let you know that we offer some great for financing options here at Fox Family Heating and Air.  So, what follows is a few different financing solutions for our customers to help ease the financial burden.

At the end of telling you what we do offer, I wanted to tell you WHY we don’t offer PACE financing as an financing option for our customers.  So, I hope you’ll stick around to hear that.

We use two solutions for financing — Synchrony Bank and GoGreen Financing by PG&E.

SynchronySynchrony Bank Financing

Synchrony is our most popular form of financing.  It offers an unsecured revolving credit line (like a credit card), specifically for home improvements like your upcoming HVAC system.  They have no liens attached to your HVAC equipment either.

Here are 5 reasons we partner with Synchrony3 finance.

    Synchrony allows our customers to select a payment plan that works best for their budget.  Customers can choose one of the following options.

    • 25 months at 0.00%
    • 37 months at 5.99%
    • 61 months at 7.99%
    • 132 months at 9.99%
    • The credit application is short and simple and can be done over the phone with our office staff – or we can email a link directly to the customer to complete. Please email us at to get started with the process.
    • Upon completion of the application, the credit decision is instant. Once approved, Synchrony emails a financing agreement to the customer for electronic signature.
    • The entire process with Synchrony is done electronically. This means faster processing and no postage or wasted paper.
  5. There’s NO MINIMUM
    • Customers can apply for financing for smaller repairs, too. For any financed amount under $2,500, Synchrony offers a payment plan of 6 months at 0.00%.

GoGreen Financing

GoGreen Financing through PG&E

Again, this program is available to PG&E customers only. Meaning, at my house, we get our natural gas from West Coast Gas and our electricity from SMUD. So, we wouldn’t be able to use GoGreen financing.

Customers can choose from several different lenders affiliated with this program.  The rates range from 5.99% to 9.99%, and they also have options available for customers with lower credit scores.

This is an unsecured loan, so there is no lien placed on the equipment.

Customers can apply for this loan by going to   The customer works directly with the lender for the application and financing documents.  This process, from application to system installation, typically takes about 5-7 days.

Once all required paperwork is in place, GoGreen will provide us with an authorization to proceed with the system installation.

Why We Do Not Use Pace

You may have heard about PACE, YGRENE.  A PACE loan might be a viable option for funding. It makes it easy for you to qualify for relatively affordable long-term loans, but there are pros and cons of going this route.

The Pros are typical – easy approval, no down payment, the assessment stays with the property, very flexible terms, extended payoff times (10-20 years, for example), and the interest rates might be tax-deductible.

But because of the Cons – we don’t offer it. Don’t get me wrong; some companies do a ton of PACE financing. But something rubs me wrong about it, so we don’t.  And here’s why:

  • Some contractors push PACE financing options to serve their own interests. Contractors receive additional referral fees from a lender if they arrange the project’s funding, so the potential for conflicts of interest is real.
  • Most people think of payments as a monthly routine. Payments for the PACE loans are due in large chunks once or twice a year.  So, you have to save monthly for when it’s time to make those bulky payments, or else you’re going to get a surprise expense when it’s time to make those inflated payments.

Granted, If your mortgage loan servicer pays your property taxes through an escrow or impound account, you should be able to make your PACE payments in monthly installments as well.

  • PACE financing, while relatively simple, isn’t cheap. There are significant closing costs, and the interest rates can be higher than traditional home equity loans or a line of credit.
  • Realtors hate PACE financing because it makes it difficult to sell the house until the loan is fully paid off. And if you suddenly decide to pay the loan off early so that you can sell the house easier and you didn’t check that little box when you signed up for the loan, you get stuck paying the loan’s interest anyway.

Salespeople will tell you the loan stays with the property and not the owner.  So when you’re ready to sell your home, it just passes on to the new owner.  But no buyer wants to incur those payments, trust me.

  • Finally, PACE borrowing is secured by your home, so it’s possible to lose your home in foreclosure if you don’t make the payments. And because the PACE lien is generally in “first position”—meaning, in front of your mortgage lender—you risk foreclosure even if you make your regular mortgage payments as agreed.

Also, according to the Federal Housing Financing Authority, homes with a PACE lien are not eligible for a mortgage financed by Fannie Mae, Freddie Mac, or the Federal Home Loan Banks. That could make it impossible to sell the property to someone whose mortgage was obtained through a federal lending program.

Okay, I didn’t mean to go off on a tangent there, but I feel strongly about transparency.  As the owner of Fox Family, I’m privy to all of these details, but it’s hard to get this info to all of my techs and make it sink in by the time they get to your kitchen table to sell you a system.  For that reason, all of these little details, which can ultimately end up with someone losing their home, aren’t worth it to us just to sell a system.

Our 2 Financing Options

So, these are our financing options.  Hopefully, this eases the burden of your HVAC project so you can break it down into smaller payments.  Our 0% for 25 months option through Synchrony is a great way to go.  You can pay it off early, but you have to make at least minimum payments every month.

If you have any questions about this, shoot me an email at