Borrowing money to buy E/AB
- Thread starter Tom-D
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Ravioli
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Unwanted Guest - Perma-ban Pending
I know builders who've used HELOC to finance the build. I also know a couple people who financed their purchase of flying RV's. I'd have to ask about where they got their loans.
I paid cash for mine.
I paid cash for mine.
Tom-D
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Tom-D
I've never been there either, was just asking. I know our Credit Union won't.
EppyGA
Touchdown! Greaser!
EAA works with a group that will finance an E/AB
Tom-D
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I kmew the EAA would, but will your bank?
catmandu
Pattern Altitude
Met a guy with my same non-surname on a chairlift a few years ago, worked for First Pryority Bank and said "send your EAB friends my way." Might give them a shout.
kyleb
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Drake the Outlaw
Depends on you and your bank. My bank would probably give me a signature loan to buy hookers and blow. I have pretty good credit and they like having my/our business. ;-)
Clip4
Final Approach
There is no registration to attach a lien so I doubt any bank would allow it to be used as collateral. If your credit is worthy, I am sure some one would extend an unsecured loan at a higher interest rate.
In general, it depends. I believe the EAA maintains a list of the financial entities who do and the models they approve. Not all E/ABs can be used but its dependent on the bank.
Kenny Phillips
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Why isn't there a registration? There should be ... same as a certificated airplane.
Tom-D
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Tom-D
When the aircraft is completed and it has a N number there must be a registration. buying a kit, maybe not.
Checkout_my_Six
Touchdown! Greaser!
forgetaboutit...... 
Clip4
Final Approach
Please substitute if for the word when. Completion rates for kit planes are not good.
Tom-D
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Clip4
Final Approach
Not if you were asking me to loan you the money for a set of plans and a pile of aluminum.
Lachlan
En-Route
If I ever build a really cool airplane from a set of plans and a pile of aluminum, will you loan me the money to do it? How’s that?
Tom-D
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Tom-D
There ya go, I wasn't
RTFQ
Clip4
Final Approach
If I roll up with a truck full lumber you’ll issue me a mortgage. Loaning unsecured and secured funds is the issue.
Mooney Fan
Line Up and Wait
and hangars are full of them thus adding to the shortage of hangars available for flying A/C
Lachlan
En-Route
Sure- just sign right here...
wsuffa
Touchdown! Greaser!
Well, there are construction and bridge loans for houses, those are refinanced as mortgages when construction is done.
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N1431A
A guy in the Airpark (Not me) put mortgage on his home to buy a plane.
Zeldman
Touchdown! Greaser!
So youse wants to entertain a loan to buy an experimental airplane.?? Step into my office.....
MtPJimB
Pre-takeoff checklist
I work for a bank. Two issues: purpose of the loan; collateral for the loan. Most banks won’t balk at doing a loan for the purpose of purchasing an airplane (experimental or certified), as long as you meet their credit standards. However, a much smaller set of banks would be willing to do a loan secured by an airplane as the process of perfecting a lien is much more complex than other type of collateral and the process to repossess, if needed, could be more challenging for smaller banks with limited resources. That pool shrinks even further if you start talking about an experimental. So you might have better luck with your local bank using something else as collateral (such as equity in your home).
