Is it hard to get airplane financing?
At a minimum, you’ll need a 15-20% down payment, plus 18 months of payments in liquid assets and a credit score of no less than 700 to be considered. Just like buying a house, set your budget according to what works with your financial situation before you get your heart set on a particular aircraft.
Can I get a loan to buy a plane?
You have the option of either traditional banks or specialty lenders to finance your plane. Larger banks don’t usually have aviation-specific loans. However, they do offer HELOCs, mortgages, and unsecured loans to finance your bird. Specialty lenders finance loans as well as other aspects of aviation.
Where can I finance a plane?
Comparison of 10 Aircraft Financing Lenders
| Lender | Amount | APR |
|---|---|---|
| PNC Aviation Finance | Flexible | Varies |
| Air Fleet Capital | $65,000 – $100,000 | Varies |
| TD Bank Aviation Finance | Flexible | Varies |
| National Aircraft Finance Company (NAFCO) | Flexible | Competitive |
How does aircraft financing work?
In a basic secured loan structure, a lender makes a loan to an airline or leasing company to purchase an aircraft from a manufacturer (if new) or seller (if used). The loan is secured by a mortgage or other security interest over the aircraft. The airline or leasing company owns the aircraft from the outset.
How much is a downpayment on an aircraft?
10 percent to 20 percent
When financing an aircraft, a down payment is required. Most common is a down payment ranging from 10 percent to 20 percent. The amount of the down payment can affect rates, terms and amortization.
How many years can I finance an airplane?
20 years
How many years can you finance an airplane? Usually, the longest financing term is 20 years. Older aircraft may have a limit of 10 to 20 years. You can also arrange a 20-year amortization on a five-year balloon payment purchase.
How do you finance a private plane?
Escape Commercial Flight: Three Ways to Finance Your Private Aircraft
- Traditional Loans. No different than your smaller purchases – like houses, cars and boats – your traditional aircraft loan can be a fixed rate or a floating rate.
- Asset-Based Loans.
- Aircraft Leases.
How many years can you finance an aircraft?
How much do you need down for an aircraft loan?
15 percent to 20 percent
Down payment: When financing an aircraft, a down payment is required. Most common is a down payment ranging from 15 percent to 20 percent. If you have exceptional credit, you may be able to provide a 10-percent down payment. There are no zero-down payments in aviation.
How many years can you finance an airplane?
What is a typical aircraft loan term?
Up to 20 years. <4.00-5.00% Helicopters. 20-30% Up to 10 years.
What is a typical aircraft loan?
In a typical aircraft loan, the amortization period is not always the same length as the term. Balloon payments can be available, such as 20-year term with a balloon payment due after five years. Aircraft built from 2010 have terms up to 20 years. Older ones have terms between 10 and 15 years maximum.
What is the competitive aircraft financing program?
Our competitive aircraft financing program offers many aviation industry exclusives including reduced customized down payment options for qualified applicants. Are you ready to purchase an aircraft for your business or for personal use and now you just need to secure financing?
Why choose US aircraft finance?
US Aircraft Finance, through its subsidiary US Aircraft Insurance, combines our knowledgeable team of aviation insurance professionals with the industry’s most respected aviation insurance underwriting companies.
What kind of aircraft loans do we offer?
We specialize in aircraft loans for late model, standard category, and general aviation aircraft operated and based within the United States. Our competitive aircraft financing program offers many aviation industry exclusives including reduced customized down payment options for qualified applicants.
How many aircraft financing loans has USAF closed?
USAF has closed well over $250 million in aircraft financing loans and is staffed by industry professionals with over 50 years of combined experience in both banking and flying.