FLYING Finance — Updated June 2026

How Aircraft Financing Works

Everything you need to know — from loan requirements and current rates to the full closing process. Loans from $50,000 to $5 million for every category of general aviation.

$50K–$5M
Loan range
20 yr
Max term
10–21
Days to close
Soft pull
To pre-qualify

Buying an aircraft is closer to buying real estate than buying a car. There is a title search, a lien filed with the FAA, an independent pre-purchase inspection, an escrow company coordinating the closing, and a lender who wants to understand not just your finances but the specific aircraft you are buying and how you plan to use it. The financing process has its own vocabulary and its own timeline, and it moves faster than most first-time buyers expect when you have the right people involved.

FLYING Finance arranges aircraft loans from $50,000 to $5 million across every segment of general aviation in the continental United States. First-time buyers financing a used Cessna 172, high-net-worth individuals who prefer the strategic advantages of financing, business owners adding an aircraft to the company, flight schools building out a training fleet, and charter operators expanding a Part 135 certificate. We work across all of it, and the underwriting approach is different for each. This guide walks through the whole picture.

For editorial coverage on the aircraft themselves, the team at FLYING Magazine has covered the GA fleet more thoroughly than anyone. AvBuyer and AircraftForSale.com are where most aircraft searches begin. Plane & Pilot and Kitplanes cover the light sport and experimental side well. This guide picks up where those resources leave off, at the financing step.

You are buying your first aircraft, or the one you have been working toward for years.

Most retail buyers are financing $75,000 to $600,000 on certified piston aircraft: a Cessna 172, Piper Archer, Cirrus SR22, or Beechcraft Bonanza. The loan is a fixed-rate, fixed-term installment loan with the aircraft as collateral. You do not need a corporation or a commercial certificate. You need verifiable income, a credit score above 680, a down payment, and clarity on how you will use the airplane. FLYING Finance handles lender selection, document coordination, and the connection to title and escrow so you can focus on the aircraft.

Loan range
$50K–$750K
Down payment
10–15%
Credit score
680+
Max term
20 years
Start your application

You have the liquidity to pay cash. Financing is a strategic decision, not a necessity.

High-net-worth buyers frequently finance aircraft to preserve liquidity, maintain investment positions, or optimize the tax year of acquisition. Loan sizes of $500,000 to $5 million are common in this segment covering late-model Cirrus SR22Ts, Pilatus PC-12s, TBMs, King Airs, and light jets. Documentation programs for borrowers with strong net worth relative to loan size exist, and they trade some documentation depth for speed and simplicity. The aircraft selection carries more underwriting nuance at this level. A factory-equipped, single-owner airframe with current avionics and an engine on program is a materially different collateral story than the same model with deferred maintenance.

Loan range
$500K–$5M
Down payment
15–20%
Programs
Low-doc available
Max term
20 years
Talk to a specialist

The company needs a plane, or the owner does and the business is part of the financial picture.

Business aircraft financing covers two scenarios that look similar but underwrite differently. In the first, the aircraft is a genuine operational tool for client travel, site visits, or time-sensitive logistics. In the second, a successful business owner wants to own an aircraft personally and the business supports the financial profile. Both are legitimate and both are common. Lenders evaluate entity structure, documented use, and the financial profile of the principals. The question of whether to hold the aircraft personally, in an LLC, or in the operating company has real tax and liability implications. Consult your CPA and aviation attorney before the loan closes. FLYING Finance does not provide tax or legal advice.

Loan range
$100K–$5M
Down payment
15–20%
Structure
LLC common
Use
Part 91 business
Business aircraft financing

You are running a flight school, charter certificate, or other aircraft-centric operation.

Commercial operators represent a specialized underwriting category. Lenders evaluate revenue-generating capacity, certificate history, and fleet maintenance programs alongside the standard financial picture. Higher utilization accelerates depreciation, which affects loan-to-value terms, and Part 135 operations typically require 20% or more down. FLYING Finance has dedicated programs for flight school fleet financing and preferred OEM relationships with Sling, Tecnam, and Bristell. If you are scaling a training fleet, the interaction between your financing structure, GI Bill enrollment, and 529 student funding also affects how you build your student pipeline. The flight school financing page covers all of it.

Loan range
$75K–$5M
Down payment
20%+
Use types
Pt. 141 / Pt. 135
Fleet programs
Available
Flight school financing
Amelia
FLYING Finance AI Specialist
Permanent member of the FLYING Finance team

"From pre-approval to keys, I can walk you through every step — what lenders look for, how long it takes, what the documents are, and what happens between signing a purchase agreement and getting the wire confirmation."

What is the first step in aircraft financing?
How long does aircraft financing take?
What documents do I need for an aircraft loan?
What credit score do I need?
What is LTV in aircraft financing?
A
Ask me anything about the aircraft financing process — from pre-approval to closing, documentation, timelines, or what a lender is actually looking at when they review your file.

What Is Aircraft Financing and How Is It Different?


An aircraft loan is a secured installment loan. The lender provides the capital, records a lien against the aircraft at the FAA Civil Aviation Registry in Oklahoma City, and you repay in fixed monthly installments over the agreed term. When the loan is paid off, the lien is released. Simple in principle, specific in practice.

FLYING Finance operates as a broker, not a direct lender. Rather than being limited to one institution's guidelines and rate sheet, we present your aircraft financing application to the lender in our network best suited to your aircraft type, loan size, credit profile, and intended use. That means competitive terms without having to apply to multiple places yourself and absorb the credit impact of each inquiry.

The distinction from traditional consumer lending is real. Most banks and credit unions that handle auto and mortgage loans do not have the internal expertise to evaluate an aircraft properly. They may not know how to value a factory Garmin G3X installation, how Part 91 versus Part 135 use changes lender risk, or what a pre-purchase inspection report tells them about the asset's true condition. Aviation specialty lenders understand all of that, and the ones FLYING Finance works with do this every day.

Why the aircraft itself matters as much as your credit A car depreciates on a predictable schedule. Aircraft values depend on total airframe time, engine time since overhaul, avionics configuration, annual inspection status, and maintenance history. A Cirrus SR22 with a fresh engine, current Garmin Perspective+, and a clean logbook is a fundamentally different collateral story than the same model year with 1,800 hours and deferred maintenance. Lenders price that difference, which means the aircraft you choose directly affects your loan terms beyond just the purchase price.

For the editorial perspective on which aircraft might be right for your mission, FLYING Magazine has covered nearly every production aircraft in the fleet. The FLYING Finance Aircraft Buyer's Guide and the Aircraft Comparison Engine let you compare airframes side by side with real-world numbers before the financing conversation begins. The Ownership Planning Tool models true cost of ownership so the monthly number you are underwriting makes sense in full context.

Aircraft Loan Requirements


Aircraft financing underwriting evaluates three things simultaneously: the borrower, the financials, and the aircraft. All three need to work. A strong borrower profile cannot rescue a poor collateral story, and a pristine aircraft does not compensate for a thin financial file. Here is how each element breaks down in practice.

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Credit Score
Most aviation lenders start at 680. Preferred-tier pricing kicks in at 720 and above. Below 680 is not automatic disqualification. Down payment size, liquid reserves, income strength, and the aircraft itself can all compensate. Specialty programs exist for profiles outside conventional guidelines.
Preferred: 720+
💰
Debt-to-Income
Lenders want your total monthly debt obligations, including the new aircraft payment, to stay below 46% of gross monthly income. This is the standard for personal loan underwriting. Real estate investors and business owners with significant asset or cash flow profiles may be underwritten on a debt service coverage ratio basis rather than personal DTI. Strong liquid reserves can offset a higher DTI in some programs.
Maximum: 46% DTI
🏦
Liquidity
Lenders want to see that you can cover the down payment and still have meaningful reserves. Three to six months of debt service post-close is a common benchmark. For high-net-worth borrowers, a detailed net worth statement often carries more weight than a W-2 in the underwriting conversation.
3–6 months reserves
✈️
The Aircraft
Age, total airframe time, engine hours since overhaul, avionics configuration, and annual inspection currency all factor into lender appetite and LTV limits. Late-model composite aircraft with factory avionics are the most lender-friendly. Older aircraft with incomplete logs or deferred maintenance require more conversation.
Desktop appraisal

Loan-to-Value by Aircraft Category

LTV is the percentage of the aircraft's appraised value a lender will finance — one of the most important variables in any aircraft financing transaction. It varies by aircraft type, intended use, and borrower profile. A higher down payment almost always produces better rate terms, and the difference between 80% and 85% LTV can be meaningful across a 20-year loan.

What Documents You Will Need

The documentation package for aircraft financing scales with loan size and borrower complexity. Submitting everything at once is the fastest path to approval. Incomplete files are the most common cause of delays.

Individual / W-2 Borrower +
  • Three years of personal federal tax returns (all pages, including K-1s)
  • Three years of W-2s
  • Two most recent pay stubs
  • Three months of bank statements
  • Personal financial statement or net worth summary
  • Aircraft spec sheet or listing link
  • Signed purchase agreement when available

W-2 borrowers without business ownership typically see the fastest approvals, often same or next business day on a complete file.

Self-Employed / Business Owner +
  • Three years of personal federal tax returns (all pages, including K-1s)
  • Three years of business federal tax returns
  • Year-to-date profit and loss statement
  • Three months of business bank statements
  • Three months of personal bank statements
  • Personal financial statement
  • Business entity documentation (operating agreement, EIN)
  • Aircraft spec sheet and purchase agreement

Business owners should expect 3 to 5 business days for a credit decision due to entity review. Full approval follows once the aircraft is identified and appraised.

High Net Worth / Low-Doc Program +
  • Personal financial statement with full asset and liability detail
  • Two or more years of personal tax returns depending on program
  • Three months of bank or investment account statements
  • Rent roll if applicable
  • Aircraft spec sheet and purchase details

Low-doc programs are available for qualifying borrowers and trade some documentation depth for speed. Ask FLYING Finance whether your profile qualifies.

Commercial / Flight School / Charter Operator +
  • Three years of business federal tax returns
  • Year-to-date profit and loss statement and balance sheet
  • Three months of business bank statements
  • Operating certificate (Part 141, Part 135 as applicable)
  • Fleet maintenance program summary
  • Personal tax returns and financial statements for principals
  • Aircraft spec sheet, purchase agreement, and intended use detail

Commercial underwriting includes evaluation of the operator's certificate history and revenue profile. New operators without an established track record may face additional scrutiny. FLYING Finance can advise on how to position the application for the best outcome.

A note on pre-purchase inspections Most aircraft financing lenders require a pre-purchase inspection conducted by an independent A&P mechanic or IA not affiliated with the seller before funding. The inspection report becomes part of the underwriting file. Significant deferred maintenance may require remediation before closing, or it may be reflected in an adjusted appraised value. Budget $500 to $2,500 depending on aircraft complexity and whether the inspector needs to travel to the aircraft. On turboprops and anything with a FADEC-controlled engine, spend on a thorough inspection.

Once your documentation is ready, you can submit through the FLYING Finance secure document upload portal or start with the Aircraft Specification Form to give us the details on what you are buying.

Aircraft Loan Rates and Terms


Aircraft financing rates in mid-2026 start in the low-to-mid 6% range for well-qualified borrowers on certified piston and turboprop aircraft. Light sport, MOSAIC, and experimental aircraft begin slightly higher depending on lender and aircraft type. Your specific rate is a function of the benchmark rate environment, your credit profile, the aircraft, the loan size, and the term selected. For live benchmark rates — the 1-Month T-Bill, SOFR, and WSJ Prime that aviation lenders use to price their spread — the live rates page tracks those in real time.

Aircraft Category Rates Starting At Typical Down Max Term
Certified PistonC172, Piper Archer, Bonanza, Piper Lance, Mooney 6.50% 10–15% 20 years
High Performance & Glass CockpitCirrus SR22/SR22T, Diamond DA40/DA42, Cirrus SR20 6.50% 10–15% 20 years
TurbopropPC-12, TBM series, King Air, Piper M600, Caravan 6.35% 15–20% 20 years
Light JetPhenom 100/300, Citation M2/CJ, Vision Jet SF50 6.00% 15–20% 15–20 years
MOSAIC / Light SportSling TSi/LSA, Tecnam, Bristell Classic/B23 6.75% 15–20% 20 years
Experimental / KitbuiltVan's RV series, Zenith, Sonex, Kitfox 7.00% 20%+ 15 years
Flight School / CommercialPart 141, Part 135, leaseback configurations 6.75% 20%+ 15–20 years

Rates shown are starting points for qualified borrowers as of mid-2026 and are subject to change with market conditions. Aircraft financing rates improve with automatic payment enrollment, larger loan sizes, and strong borrower profiles. Your actual aircraft financing rate is quoted after pre-qualification based on your specific file and aircraft.

Fixed vs. Variable Rate

The overwhelming majority of aircraft financing loans are fixed-rate. Your payment and rate are locked in for the life of the loan regardless of what benchmark rates do over a 15 or 20-year term. That predictability has real value, especially for long holds.

However, variable-rate programs are worth a look if your intended hold period is short. For example, if you plan to sell the aircraft or refinance within three to five years, a variable rate that starts lower may work in your favor, particularly if rates are expected to trend down over that window. The tradeoff is payment uncertainty if rates move against you. Most FLYING Finance clients on longer hold strategies choose fixed-rate for budget certainty, but the variable option is a legitimate consideration for buyers with a defined exit horizon.

How Loan Term Affects Your Payment

Shorter term
10
years
Higher monthly payment, significantly less total interest paid. Common for buyers with strong cash flow who plan to upgrade or sell within a decade.
Standard
15
years
The most common term for certified piston and turbine aircraft. Balances payment size against total interest cost over the loan life.
Extended
20
years
Lowest monthly payment. Available on certified piston, turboprop, and MOSAIC aircraft. Maximizes monthly cash flow flexibility.
The retractable gear question A retractable-gear aircraft costs more to insure and more to maintain than a fixed-gear equivalent. Lenders do not penalize retractable gear. In fact, well-maintained retractable-gear aircraft like a Piper Arrow or Beechcraft Bonanza often hold value better than their fixed-gear counterparts. But your insurance premium and annual inspection budget will be higher. Whether the extra knots and ramp presence are worth it depends entirely on your mission. Run the numbers through the Ownership Planning Tool before the complexity of a retractable makes its way into your financing conversation.
Estimate Your Monthly Payment
Adjust any input to see how loan amount, rate, and term interact.
$2,163
estimated monthly payment
Loan amount: $297,500 Down payment: $52,500 Total interest: ~$221,000
Full calculator
This estimate is for illustration only and does not constitute a loan offer or commitment to lend. Actual rates and terms depend on your credit profile, the specific aircraft, and lender guidelines at the time of application. A soft credit pull is required for a real pre-qualification quote.

The full aircraft finance calculator lets you compare multiple scenarios side by side and model the full ownership cost breakdown. If you already know what you want to buy, the application takes about 10 minutes and starts with a soft credit pull only.

The Aircraft Financing Process


From a complete application submission to funding, most aircraft financing transactions close in 10 to 21 business days. The variables are how quickly your documentation comes together, how fast the pre-buy inspection is scheduled, and whether the title search comes back clean. FLYING Finance manages the coordination across all of these moving parts so you are not chasing the lender, the title company, and your insurance agent at the same time.

Pre-approval
1–2 days
Credit decision from a complete file
Full approval
3–5 days
Lender review of aircraft and docs
Pre-buy + title
5–10 days
Inspection, title search, insurance
Closing
1–3 days
Documents signed, funds wired
1
Establish Your Budget and MissionBefore you apply
The aircraft determines the loan, so the aircraft financing conversation starts with what you plan to fly and why. A $150,000 Cessna 172 for weekend trips underwrites very differently than a $400,000 Cirrus SR22T for IFR business travel or a $1.2M Piper M600 for a growing company. Beyond purchase price, work through hangar costs, insurance, fuel burns, and annual inspection estimates before locking in on a payment. The Ownership Planning Tool models total cost of ownership. The Finance Calculator lets you pressure-test what the monthly payment looks like at different loan sizes and terms before you apply for anything. Most lenders want your total DTI, including the new aircraft payment, below 46% of gross monthly income.
2
Apply for Pre-Approval1–2 business days
Pre-approval is the first formal step in the aircraft financing process and starts with a soft credit pull with no impact to your score. Submit your income documentation and a description of the aircraft category you are targeting. You do not need a specific aircraft identified yet. FLYING Finance presents your profile to the lender best suited to your situation and returns a pre-approval letter with rate and term parameters. Your rate locks for 30 days and you have 90 days to find the aircraft, which means you can make offers as a real buyer rather than a shopper with a rough estimate. Start your application here. W-2 borrowers without business entities typically get the fastest decisions, sometimes same business day on a complete file.
3
Find the Aircraft and Sign a Purchase AgreementYour timeline
With pre-approval in hand, you are a buyer. AircraftForSale.com and AvBuyer are the two primary pre-owned aircraft marketplaces. For new MOSAIC and LSA aircraft, manufacturer dealers for Sling, Tecnam, and Bristell are the contacts. Once you find the aircraft, the purchase and sale agreement is a binding legal document. Have someone familiar with aviation transactions review it before signing. It sets price, conditions of sale, deposit handling, how the pre-buy is managed, and the closing timeline. A balanced purchase agreement protects your deposit if the pre-buy turns up significant issues. Do not just sign whatever the seller provides.
4
Schedule the Pre-Purchase Inspection3–7 days to schedule
The pre-buy inspection is non-negotiable for your protection and the lender's. An independent A&P mechanic or IA not affiliated with the seller or selling dealer inspects the aircraft, reviews the logbooks, checks for open Airworthiness Directives, and produces a written report. The lender reviews this as part of underwriting. Significant deferred maintenance may require remediation before funding, or it may reduce the appraised value. Budget $500 to $2,500 depending on aircraft type and whether the inspector needs to travel to the aircraft. On turboprops and anything with a FADEC-controlled engine, spend on a thorough inspection. The buyer typically pays for the pre-buy. The seller typically addresses airworthiness items uncovered. That needs to be agreed in the purchase contract, not assumed after the fact.
5
Decide on Ownership StructureBefore closing
How the aircraft is titled affects liability exposure, insurance, and tax treatment — and it is a decision that must be made before the aircraft financing closes. Many buyers hold aircraft in a single-purpose LLC for liability separation and estate planning simplicity. Business buyers may hold it in the operating company or a separate entity depending on their tax situation. Whatever you choose needs to be finalized before closing because the loan documents and FAA registration paperwork will be prepared in the name of the titled owner. FLYING Finance does not provide legal or tax advice. Consult your CPA and aviation attorney before finalizing ownership structure. The decision has real financial and liability consequences that vary by state and situation. If you are buying for business use and considering Section 179 or bonus depreciation, structure and timing of the purchase matter significantly. Get tax counsel involved before the loan closes.
6
Set Up Insurance, Title, and EscrowConcurrent with steps 4 and 5
Lenders require proof of hull and liability insurance before they will fund — in addition to the signed loan documents, the insurance binder is one of the final items needed to release funds. The policy needs to be in force at closing and must name the lender as lienholder. Get your insurance quote in parallel with the pre-buy, not after. Aircraft insurance premiums vary based on hull value, pilot experience, ratings, and intended use. A 250-hour private pilot insuring a $400,000 Cirrus SR22 will pay materially more than a 1,500-hour instrument-rated pilot insuring the same aircraft.

Title and escrow are handled by an aviation title and escrow company. They conduct the FAA title search, clear any existing liens, prepare the closing documents, and file the new lien with the FAA Civil Aviation Registry after closing. FLYING Finance regularly works with AIC Title Service and AeroSpace Reports, both of which have deep experience in general aviation transactions and know how to move a closing efficiently without unnecessary delays. A title search occasionally turns up unresolved liens from previous owners or mechanics that were never properly released. This is why the title search happens before funds move, not after.
7
Full Lender Approval and Loan Documents3–5 days after aircraft identified
Once the aircraft is identified and the pre-buy is complete, the lender conducts a desktop appraisal using Vref or Aircraft Bluebook and issues full credit approval. Aircraft financing loan documents are prepared and sent to you for review and signature. Read them carefully. Pay particular attention to prepayment provisions (most aviation loans allow prepayment without penalty), lien terms, and insurance requirements. The lender will not fund until all documents are executed, returned, and the insurance binder is confirmed.
8
Close and Take Delivery1–3 days from final docs
Closing is simultaneous: the escrow company confirms all documents are in order, the lender wires funds to escrow, escrow disburses to the seller, and the FAA paperwork including the new lien filing is submitted. You receive the aircraft logbooks, keys, and a closing confirmation from escrow. The FAA registration takes several weeks to process and the escrow company provides a temporary operating certificate in the meantime. First payment is typically due 30 days after closing. Then go fly. Plan your first flight after closing is complete. If you want to evaluate how the aircraft flies before committing, that is a pre-purchase demo flight conversation with the seller, a separate arrangement made before the purchase agreement is signed.
What causes aircraft financing closing delays The most common issues: documentation submitted incomplete or piecemeal (submit everything at once), pre-buy squawks that require seller negotiation, title searches that turn up liens requiring releases from previous owners, and insurance that is not bound before the funding deadline. As a result, FLYING Finance flags potential issues early so they do not derail your timeline. The full loan process overview walks through each milestone in detail.

Financing by Aircraft Type


The aircraft shapes the loan as much as your financial profile does. Here is how underwriting differs across the major categories, and where to go for model-specific detail.

🛩
Certified Piston
Cessna 172/182/206, Piper Archer/Cherokee, Beechcraft Sundowner, Grumman AA series
The largest segment of the GA market and the most lender-friendly. Fixed-gear certified pistons from established manufacturers have well-documented value histories and strong lender familiarity. Engine time since overhaul and annual inspection currency are the primary underwriting considerations alongside credit and income.
High Performance & Glass Cockpit
Cirrus SR20/SR22/SR22T, Diamond DA40/DA42, Beechcraft Bonanza G36, Mooney M20 series, Piper Saratoga/Lance
Glass cockpit aircraft and high-performance retractables carry strong residual values, particularly Cirrus and Diamond composite airframes with factory avionics. A Garmin Perspective+ or G1000 NXi installation tells a meaningfully different collateral story than an older panel. Insurance is higher for lower-time pilots, and retractable-gear aircraft carry more annual inspection complexity. Whether the extra speed is worth the premium depends on your mission and hours flown per year.
🏔
Turboprop and Light Jet
Pilatus PC-12, TBM 850/900/940, King Air series, Piper M600, Citation M2/CJ, Phenom 100/300
Turbine aircraft require more documentation and higher down payments, but strong institutional lender support exists for this asset class. Powerplant programs — ESP Gold, Pratt MSP, King Air Jet Care — factor heavily into collateral valuation because an engine on program is worth more to a lender than one that is not. FADEC-equipped aircraft provide engine monitoring data that lenders appreciate. The Piston to Turbine Transition Guide covers the full financial picture of moving up.
🌱
MOSAIC and Light Sport
Sling TSi/LSA, Tecnam P-Twenty One, Bristell Classic/B23/B23 Turbo, Flight Design
The FAA MOSAIC rule expansion lifted the 1,320-pound LSA weight ceiling and brought a new generation of capable aircraft into the light sport category. FLYING Finance has preferred OEM financing programs with Sling, Tecnam, and Bristell with pre-negotiated rates, lenders already familiar with these airframes, and up to 20-year terms. Monthly payments on a $150,000 Sling can be lower than a new SUV payment.
🔧
Experimental and Kitbuilt
Van's RV series, Zenith STOL, Sonex, Kitfox, completed amateur-built aircraft
Experimental aircraft financing is available but more limited. Values are harder to establish and resale markets are thinner than certified aircraft. Professionally completed kits with clean build documentation, quality avionics installations, and reputable maintenance history are the most financeable. Builder logbooks and the original airworthiness inspection record matter to lenders. Kitplanes is the primary editorial resource for the experimental community.
🏫
Flight School and Fleet
Part 141 training fleets, leaseback aircraft, Part 135 charter additions
Fleet financing for flight schools and commercial operators evaluates revenue capacity, certificate history, and maintenance programs alongside standard financials. FLYING Finance has dedicated fleet programs and preferred OEM relationships with Sling, Tecnam, and Bristell. The 529 college savings fund and GI Bill enrollment dynamics add another strategic planning layer to fleet capitalization and student pipeline development.

Business Aircraft Financing


Aircraft financing for business use introduces a second layer of underwriting. Lenders evaluate entity structure, documented use, and the financial profile of the principals alongside the standard borrower analysis. Moreover, business buyers frequently have stronger overall financial profiles and more flexibility in how the loan is structured.

Business Owners Adding an Aircraft

The most common scenario: a successful owner of a non-aviation business who wants an aircraft for personal and business travel. The loan may be in the individual's name, the business's name, or a holding LLC, but regardless of entity, lenders want personal financial statements and tax returns from the principals. The business's revenue stability matters because personal income is often tied directly to it.

For business buyers, the depreciation conversation with a CPA is worth having before the aircraft financing loan closes. Bonus depreciation on aircraft has been in flux, and the tax treatment of business aircraft purchases depends on use percentage, entity type, and current tax law. Consequently, FLYING Finance does not provide tax or legal advice. Consult your CPA and aviation attorney. The bonus depreciation overview provides background context on how the provision has worked for aviation buyers.

Charter Operators and Part 135 Certificates

Part 135 operations are commercial. The aircraft generates revenue, which both supports and complicates the loan. Lenders apply higher down payment requirements, typically 20% or more, because commercial utilization accelerates depreciation. Charter operators need to demonstrate revenue history and a valid operating certificate in good standing. New certificate holders without an established track record face additional scrutiny, and FLYING Finance can advise on how to position the application for the best possible outcome.

Section 179 and bonus depreciation Aircraft used primarily for business may qualify for accelerated depreciation under Section 179 or bonus depreciation provisions, potentially allowing a significant deduction in the year of acquisition. The rules change frequently and depend on business use percentage, entity type, and current tax legislation. The One Big Beautiful Bill Act moving through Congress as of mid-2026 proposes restoring 100% bonus depreciation. Consult your CPA before structuring the purchase. Timing and entity choice can meaningfully affect your net cost of ownership. This is not tax advice.

For a full breakdown of business aircraft underwriting, see the business aircraft financing page. For the share-back, leaseback, and dry lease structures available to business operators, see the dry lease and wet lease guide.

Low-Doc Programs


Not every borrower fits the standard documentation model for aircraft financing. High-net-worth buyers with complex income structures, recent business owners whose returns do not yet reflect current earnings, and buyers with liquidity concentrated in investable assets may find that low-documentation programs are a better fit than conventional underwriting. In contrast to full-doc programs, low-doc structures rely more heavily on net worth and the aircraft as collateral.

Standard Full-Doc vs. Low-Doc Program
Standard Full-Doc
Three years personal tax returns
W-2s or business returns
Pay stubs and bank statements
Best available rates
Lowest down payment — 10–15%
Loans from $50,000
Low-Doc Program
Personal financial statement
Bank and investment statements
~Two or more years of tax returns
~Rate or down payment slightly higher
Available for loans $250,000 or below
Rent roll if applicable

Low-doc aircraft financing programs trade some documentation depth for speed and simplicity. The lender is relying more heavily on the net worth statement and the aircraft as collateral, and they price that accordingly. Ask FLYING Finance directly whether your profile suggests a low-doc approach makes sense for your situation.

Desktop appraisals using Vref or Aircraft Bluebook are standard for loans under $1 million and are included in the underwriting process. On-site appraisals may be required for larger loans, unusual aircraft configurations, or significant modifications not reflected in standard valuation guides. Appraisal costs are typically passed to the borrower and run $500 to $2,000 depending on aircraft type. The Beyond the Barriers page covers specialty programs for borrowers outside conventional guidelines.

Frequently Asked Questions


How does aircraft financing work?+

Aircraft financing is a secured installment loan where the aircraft serves as collateral. A lender provides capital to purchase the aircraft, records a lien at the FAA Civil Aviation Registry, and you repay in fixed monthly installments over the agreed term. FLYING Finance works as a broker, matching your application to the lender in our network best positioned to offer competitive terms for your specific aircraft, credit profile, and intended use. Most transactions close in 10 to 21 business days from a complete application submission.

What credit score do I need to finance an aircraft?+

Most aviation lenders start at 680. Preferred-tier pricing kicks in at 720 and above. Below 680 is not an automatic disqualification. Down payment size, liquid reserves, income documentation, and the aircraft itself all factor into the underwriting decision. FLYING Finance also works with specialty lenders for profiles outside conventional guidelines. See the Beyond the Barriers page for more.

How much down payment do I need for an aircraft loan?+

Standard down payments range from 10 to 15% for certified piston aircraft on a full-doc program, 15 to 20% for turboprop and turbine aircraft, and 20% or more for experimental aircraft, commercial use configurations, and flight school or leaseback situations. A larger down payment almost always produces better rate and term outcomes. Use the Finance Calculator to compare payment impact at different down payment percentages before you apply.

How long does aircraft loan approval take?+

Pre-approval typically takes 1 to 2 business days from a complete file. Full approval after an aircraft is identified and the pre-buy inspection is complete takes another 3 to 5 business days. Closing runs 1 to 3 days once loan documents are executed and insurance is confirmed. Total from application to funding: 10 to 21 business days for most transactions.

Can I finance a used or vintage aircraft?+

Yes. The majority of aircraft loans FLYING Finance arranges are for pre-owned aircraft. Most lenders finance aircraft manufactured from the 1970s onward. Vintage and antique airframes may require specialty programs. Aircraft age, total airframe time, engine time since overhaul, avionics configuration, and annual inspection currency all factor into lender appetite. A well-maintained, properly documented older aircraft is often more financeable than a newer airframe with deferred maintenance and an incomplete logbook.

What are the minimum and maximum loan amounts?+

FLYING Finance arranges aircraft loans from $50,000 to $5 million. Most aviation lenders have a practical minimum around $25,000 to $35,000. Purchases below that range may be better served by personal installment loans. Low-doc programs are available for loans of $250,000 or below for qualifying borrowers.

Does applying affect my credit score?+

Pre-qualification uses a soft pull with no credit impact. A hard inquiry is only initiated when the application is formally submitted to a lender, and because FLYING Finance submits to one targeted lender rather than multiple simultaneously, the impact is a single inquiry. Multiple hard inquiries for the same loan type within 30 days are typically treated as a single inquiry by the major scoring models.

Can I refinance my aircraft loan if rates improve?+

Yes. Aircraft refinancing works similarly to mortgage refinancing. It generally makes sense when you can reduce your rate by 0.75% or more and have enough remaining loan balance to recover closing costs within 24 to 36 months. FLYING Finance handles aircraft refinances with the same speed as purchase financing. See the refinancing and upgrades page for details.

What is a desktop appraisal and when is an on-site appraisal required?+

A desktop appraisal uses industry valuation databases, primarily Vref and Aircraft Bluebook, to establish the aircraft's market value without a physical inspection. This is standard for most aircraft loans under $1 million. An on-site appraisal may be required for loans above $1 million, aircraft with unusual configurations or significant modifications, or when the desktop value is unclear due to thin comparable sales data.

Proof of reach

We have closed aircraft loans in your state.

272 transactions across 41 states. Click the map to see closed and funded aircraft loans by state — transaction count, total volume, and aircraft category breakdown for your market.

272
Transactions
41
States
$87M+
Loan Volume
$321K
Avg Loan
See Aircraft Loans by State →

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