How to Finance an Aircraft Purchase
Lenders, loan terms, down payments, and how to get approved for aircraft financing.
Aircraft Loan Basics
Aircraft loans typically require 15–20% down, have terms of 10–20 years, and carry interest rates of 7–9% (2026 rates). Unlike car loans, aircraft loans require the aircraft to have a current annual inspection and adequate insurance. Most lenders require hull coverage naming them as lienholder.
Top Aircraft Lenders
AOPA Aviation Finance (most popular, competitive rates), Dorr Aviation Credit, First National Bank of Omaha (aircraft division), and NBKC Bank. Credit unions sometimes offer aircraft loans at lower rates. Shop at least 3 lenders — rates can vary by 1–2% which saves thousands over the loan term.
What You Need to Qualify
Good credit (700+ preferred, 650+ possible). Proof of income. Pilot certificate and medical. The aircraft must be certified and in annual. Most lenders want a minimum loan of $30,000–$50,000. Some won't finance aircraft over 30–40 years old without extra scrutiny.
Cash vs. Financing
If you can pay cash, you avoid interest and have simpler transactions. But financing preserves your liquidity — having $100K in the market earning returns while paying 7.5% on a loan is a math problem, not a clear win either way. One strong argument for financing: it forces you to maintain insurance, which protects your investment.