Aircraft Financing Company Recomendations

Huckster79

Huckster79

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Huckster79
I possibly am going to be in need of, more accurately "want of" some aircraft financing. No lectures please on not financing toys, I could buy it outright but would rather not at least right away....

Looking for about a 70k loan or so.

I put in a request to talk to someone at AOPA financing, any other suggestions besides just googling it.... I am going to talk to my local personal or biz banker as well. Any other places I should check out or avoid?
 
Lightstream.com will give an unsecured loans for aircraft if your credit is good. Don’t even have to talk to a person.
 
I used Currency Aviation Financing. Call Kathy Mayotte 959.444.0625
I was very pleased and got a great rate in the fall of ‘22.
 
Dorr aviation is excellent. that being said - not sure what their minimum size aviation loan is...
 
Huckster79 said:
I possibly am going to be in need of, more accurately "want of" some aircraft financing. No lectures please on not financing toys, I could buy it outright but would rather not at least right away....

Looking for about a 70k loan or so.

I put in a request to talk to someone at AOPA financing, any other suggestions besides just googling it.... I am going to talk to my local personal or biz banker as well. Any other places I should check out or avoid?
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I would suggest Red River State Bank. Very knowledgeable folks.
 
Clip4 said:
I would talk to your own bank or credit union.
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If you are a member of a Credit Union that would certainly be the first place to check on rates/terms. Currency is a mortgage broker and ended up finding the best rate with a credit union. It was a simple matter to qualify as a member to be able to obtain the loan. Currency made it easy.
 
For $70k, Lighstream is the way. Pretty short online application, nearly instant approval (even on a Saturday), no questions about the airplane, no lien on the airplane, and they ACH/wire funds into your bank account same day or next.

The traditional aircraft lenders will make you jump through a LOT of hoops; lengthy applications, info about the plane, appraisals, escrow, etc. It'll take time and energy. Not worth it for a smaller balance loan like you're asking about.
 
schmookeeg said:
Been awhile since I was down this road, but good results/service from Dorr Aviation then.
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Another shout out of Dorr. They handled mine with a minimum of fuss and time.

My experience is from last spring - summer, so current.
 
bradg33 said:
For $70k, Lighstream is the way. Pretty short online application, nearly instant approval (even on a Saturday), no questions about the airplane, no lien on the airplane, and they ACH/wire funds into your bank account same day or next.

The traditional aircraft lenders will make you jump through a LOT of hoops; lengthy applications, info about the plane, appraisals, escrow, etc. It'll take time and energy. Not worth it for a smaller balance loan like you're asking about.
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Uuh, not really. I had to give them a list of equipment so they could determine the value. No appraisal. I wanted an escrow company to handle the transaction. And they also did a title search, did the registration paperwork (including the extension due to the FAA backlog).

They emailed me some paperwork, I printed, signed, scanned and mailed it back. It took 1 - 2 days to be approved.

And at a MUCH lower interest rate that Lightstream
 
"What are you buying?" is the more important question.
 
Pinecone said:
Another shout out of Dorr. They handled mine with a minimum of fuss and time.

My experience is from last spring - summer, so current.
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im in communication with them…

texasclouds said:
Buying a 170?
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. No… add a “2”… though a 170 isn’t off the table. If I get the Skyhawk I’m going to work towards keeping the 140 too. Don’t want to forget how to use my feet!

EdFred said:
"What are you buying?" is the more important question.
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thinking of a Skyhawk, we have a 6&7 yr old besides the big kids but the big ones don’t hang w us anymore- I need a machine to take the 4 of us and there’s a number of years they’ll be small enough that all 4 seats would be doable in a 172. With only two seats in the bird we have to not fly when we have them. I have the club plane but it’s a hassle to go from 6d6 to grr to get it.
 
You should get a Bonanza instead.
 
And I can recommend AeroSpace reports of escrow, title search, transferring registration.
 
I have used Dorr aviation they were a pleasure to work with. I even got to meet mr. Dorr personally,way back when. The last time I used AOPA broker and the loan ended up with BOFA. For small loans there are plenty of banks but the interest rate will be higher.
 
I went the AOPA route. It felt more like a mortgage in complexity and seemed to be one size fits all, whether you're buying a 120 or a Citation. In the end, it worked out ok for me; I'm glad I bought the plane with OPM and kept my powder dry for the first few years of ownership.
 
GeorgeC said:
I went the AOPA route. It felt more like a mortgage in complexity and seemed to be one size fits all, whether you're buying a 120 or a Citation. In the end, it worked out ok for me; I'm glad I bought the plane with OPM and kept my powder dry for the first few years of ownership.
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thats exactly why I’m doing it this way this time- rather have my funds at my disposal…
 
Huckster79 said:
im in communication with them…

. No… add a “2”… though a 170 isn’t off the table. If I get the Skyhawk I’m going to work towards keeping the 140 too. Don’t want to forget how to use my feet!



thinking of a Skyhawk, we have a 6&7 yr old besides the big kids but the big ones don’t hang w us anymore- I need a machine to take the 4 of us and there’s a number of years they’ll be small enough that all 4 seats would be doable in a 172. With only two seats in the bird we have to not fly when we have them. I have the club plane but it’s a hassle to go from 6d6 to grr to get it.
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Finally getting a twin, huh! a nice 370! (added two to the first digit)
 
TCABM said:
Why in the world would somebody want to take a 401K loan for an airplane.
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Well if you did it at the beginning of 2022, you would repay that amount which is way more than what it is now. I closed out my 401k right before the dotcom bust to use for a house purchase. Came out waaaaaaay ahead.
 
EdFred said:
Well if you did it at the beginning of 2022, you would repay that amount which is way more than what it is now. I closed out my 401k right before the dotcom bust to use for a house purchase. Came out waaaaaaay ahead.
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Nice anecdote, but it doesn’t answer the question.

Why would you, today, take a 401K loan to buy an airplane?
 
sourdough44 said:
Combo of home equity loan & a 401k loan??
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Not terrible options but I’d rather not.

I bought my c140 on a heloc, and paid it off rather quick and it worked well… but that was 20k and I’m squeamish to heloc for any more than that… there was once in my life (long ago now luckily) that I fell flat on my face- all the way… went out of biz, bankruptcy and lost my home. Throw in the divorce and I lived a classic country song for a year or two! :). And tho I did it once for a smaller amount before I’d rather not encumber my home again.

I don’t have much in 401k, I was only an employee for 7 years of my adult life- my investments now are primarily just in an investment stock account so I can access it at anytime without the restrictions of 401k, and I just don’t want to ding that fund this hard yet.

But for some folks the heloc may be a great option
 
TCABM said:
Nice anecdote, but it doesn’t answer the question.

Why would you, today, take a 401K loan to buy an airplane?
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Same reason. Market gonna go boom here in a bit. I'd come out ahead - if I wanted another airplane.
 
EdFred said:
Same reason. Market gonna go boom here in a bit. I'd come out ahead - if I wanted another airplane.
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im waiting, as I’m ready to run in while others run out as my non-stuffed shirt investment guy puts it…!

A clearance sale on stocks? This part Dutch boy will be all sorts a geeked . It’s one of the reasons I want to use opm on the bird and keep my powder dry :)
 
I used lightstream as well. No questions asked. Great rate, paid it off in less than a year. Was super simple.
 
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