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Why Financing Is Different
Thin markets, unique maintenance, and limited comps complicate valuation and underwriting. Some lenders avoid this segment; others lend with lower LTV and tighter covenants.
Underwriting Emphasis
- Documentation quality, provenance, and expert inspections.
- Pilot experience and insurance feasibility.
- Hangar and preservation practices; parts availability.
Structures
- LTV 40–65%; terms 5–10 years typical.
- Preference for fixed rates and modest balloons.
Process Tips
- Engage specialist appraisers and inspectors early.
- Confirm insurability and training standards; see insurance requirements.
- Model conservative resale scenarios in the calculator.
Related Articles
External references: FAA Registry · Appraisal Foundation · NBAA