Aircraft Financing Guide
Everything you need to know about financing your aircraft purchase
Understanding Aircraft Loans
Types of Aircraft Loans
Secured Aircraft Loans
The aircraft serves as collateral. Typically have lower interest rates and longer terms (10-20 years).
Unsecured Aircraft Loans
No collateral required. Higher interest rates with shorter terms (3-10 years).
Fractional Ownership Loans
Specialized financing for purchasing shares in aircraft partnerships.
Key Financing Terms
Loan-to-Value (LTV)
The percentage of aircraft value the lender will finance. Most loans are 75-80% LTV.
Interest Rate
Can be fixed providing predictability or variable with potential changes.
Term Length
Duration of the loan, typically 3 to 20 years for aircraft.
Down Payment
Usually 20-25% of the aircraft purchase price.
Financing Requirements
- ✓Good credit score (typically 650+)
- ✓Proof of income and employment
- ✓Personal financial statements
- ✓Valid pilot license
- ✓Aircraft appraisal
The Application Process
Application
Complete loan application with your information
Pre-Qualification
Lender reviews creditworthiness and finances
Aircraft Appraisal
Professional appraisal determines market value
Pre-Buy Inspection
Independent inspection evaluates condition
Loan Approval
Conditional approval based on inspection results
Final Approval
Final credit review and underwriting clearance
Closing
Sign documents and receive funds for purchase
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