Airplane Financing for non-US Citizens

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fukhar

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Fukhar
Hello - do you people know of any options for airplane finaning (single engine piston land, anywhere from $25,000 to $130,000, airplane based in the USA) for persons in the USA on a non-immigrant visa, who are not citizens of the USA?

thank you.
 
fukhar said:
Hello - do you people know of any options for airplane finaning (single engine piston land, anywhere from $25,000 to $130,000, airplane based in the USA) for persons in the USA on a non-immigrant visa, who are not citizens of the USA?

thank you.
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OK...you're going to have some problems there...

First off, a non-citizen on a non-immigrant visa (which one? I used to be an L1 myself...until I became an immigrant on April 30) cannot directly own an "N" registered aircraft.

They can (I was) be members of partnerships. However, if non-citizen/non-LPRs (for the purposes of the rest of this discussion I'll just use citizen to mean citizens and Permanent Residents) own more than (I think) 1/3 of the stock, then the corporation (LLCs are also corporations) must file a report every 6 months showing that the aircraft is in the US for at least 1/2 the period.

Alternatively you can set up really complex trust arrangements...but for a small plane, just not worth it.

The big issue the bank will have is your non-permanent status...if you lose your job, you have to leave the country for example, and an aircraft is eminently mobile and can be taken out of the jurisdiction of the bank's foreclosure courts with very little effort.

Just out of curiosity, what's you non-immigrant status?
 
Thanks for your reply! I'm in the US on an F1 VISA.
the airplane will be based in the US full time so no problem setting up corporation.

It will be ideal if I could work with a financer who will own the plane for me until the full amount is paid.. Any ideas will be very helpful!
 
F1 could be very difficult. It's not a classification that permits "dual intent", so you're telling USCIS that you will leave the US at the end of your studies. From a financing perspective, that make you a very high risk! H-1b, L-1, E-1 or O-1 would be easier.
 
thank you.

what about so called management groups? i would be happy for someone else to own my airplane during the financing period, and also during that time since they are the owners it poses no risk to them..

maybe something like http://planesmart.com, but that will allow me more airplane options and that will allow me to relocate the airplane to my home base..
 
Even US citizens are having a tough time getting someone to finance things like planes and boats, it's pretty tough to get loans these days, unless you have a really good job and plenty of savings.

You'll probably have better luck from family or friends, people who know you personally than going through banks or lenders.

Another way might be through an equipment leasing company, but expect to pay a high interest rate, and you will need to prove a solid source of income.

John
 
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