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Typical Ranges
Most lenders look for 10–25% down depending on collateral, appraisal, and borrower strength. A higher down payment reduces LTV and may improve pricing while lowering your periodic payment.
What Drives LTV
- Aircraft type/age/liquidity; see LTV & Appraisals.
- Borrower credit/liquidity/experience; see Underwriting.
- Usage (Part 91 vs 135), documentation, and maintenance programs.
Down Payment Strategy
- Optimize for approval and pricing: a slightly higher down often sharpens terms.
- Balance liquidity: ensure reserves for insurance, hangar, and maintenance.
- Consider balloon structures to manage payments without over‑concentrating cash.
Use the Calculator
Switch between percent and dollar down‑payment modes in our calculator to see how LTV changes payment and total interest. Test extra principal and balloons to tailor cash flow.
FAQs
Does a larger down payment always reduce APR?
Not always, but it can improve pricing and approval odds by lowering risk (LTV). Compare total cost across scenarios.
Can I use trade‑in as down payment?
Often yes—apply net proceeds to reduce principal; confirm with lender and escrow.
What if the appraisal is low?
Be prepared to add cash, renegotiate price, or adjust structure; see Appraisal guide.