Last updated:
Set Your Budget
Start with a payment and reserve number that feels safe. Use our aircraft loan calculator to test purchase price, down payment, APR, frequency, and a balloon. Overlay total cost of ownership (TCO) from our guides: Piston, Turboprop, Jet.
Documents Checklist
- 2 years personal returns (and business returns if applicable); recent pay stubs or financials.
- Personal financial statement; bank/brokerage statements showing liquidity.
- Pilot resume and hours; training/endorsements; insurance quote/binder.
- Purchase agreement/LOI; aircraft specs; logs summary and photos.
- Entity docs (LLC/Trust) if not closing personally.
Process Timeline
- Pre‑approval: Share income/liquidity and target aircraft; get a term sheet.
- Offer & LOI: Negotiate price and contingencies; place deposit into escrow.
- Prebuy: Schedule inspection, review logs, resolve squawks.
- Underwriting: Provide documents; title search; appraisal as required.
- Closing: Bind insurance, execute documents, fund, and record.
Underwriting Basics
Lenders evaluate credit strength, liquidity/reserves, income stability, and collateral quality. Reducing LTV with a larger down payment and choosing liquid models improves odds and pricing. Read What Lenders Look For and LTV & Appraisals.
Prebuy & Insurance
Choose reputable shops for prebuy; verify AD/SB compliance and corrosion. Get an insurance quote early to avoid closing delays. See Prebuy Checklist and Insurance Requirements.
Title, Escrow & Closing
Open escrow and order a title search; confirm registration details at the FAA registry. Coordinate payoff letters for any liens. See Title, Liens, Escrow & Closing and Purchase Timeline.
FAQs
How much down payment do I need?
10–25% is common depending on type/age and borrower strength. See Down Payments.
Can first‑time buyers get approved?
Yes. Strong credit, documented income, adequate reserves, and training plans help. Choosing a liquid, well‑maintained aircraft improves underwriting comfort.
What about a balloon to lower payment?
Balloons lower periodic payments but add a lump sum at maturity; pair with a clear exit plan. See Balloon Payments.