Here is what actually happens between application and closing, and where HPA fits in.

Why aircraft loans work differently

Most banks that finance cars, boats, or homes do not touch airplanes, so you are typically working with lenders who specialize in general aviation or turbine financing. Because the collateral can be hard to repossess and resell, and values can move quickly, lenders tend to be more conservative than you might expect.

Common loan structures

• Fixed-rate term loans. The most common for owner-flown piston and light turbine aircraft, typically amortized over 10 to 20 years.
• Variable-rate loans. More common on larger or higher-value aircraft, sometimes tied to an index.
• Balloon structures. Lower monthly payments with a larger payment at term end, occasionally used on higher-value aircraft.

What lenders look at

On the borrower side, expect scrutiny similar to a jumbo mortgage: credit history, income and asset verification, debt-to-income, and sometimes pilot experience, especially for higher-performance or turbine aircraft. On the aircraft side, lenders look at make, model, year, total time, engine and prop time, damage history, and market demand.

Down payment and loan terms

Plan on a meaningful down payment, generally more than you would put down on a home. Terms are usually shorter than a mortgage, often 10 to 20 years, with shorter terms on older airframes. Rates depend on your credit profile, the aircraft’s age and type, and the lending environment.

Getting pre-approved before you shop

Getting pre-approved before you seriously look tells you your real budget, speeds up the process once you find the right aircraft, and signals to a seller that your offer is credible. Financing itself typically takes about two weeks with most lenders once you are under contract, though the full transaction usually runs two to four months.

How HPA helps

HPA has transacted well over 100 aircraft on behalf of clients from our base at Conroe-North Houston Regional Airport (KCXO). We do not lend money ourselves. What we do is connect you with the right lender: HPA has multiple lending resources we can refer clients to, matched to your aircraft and situation rather than a single default option. Brandon Ray, HPA’s founder, is an ATP, CFI, CFII, MEI, and A&P, a seven-time Master Instructor, with a Wharton MBA and multiple PIC jet type ratings, and a team behind him handles research, valuation, and technical evaluation on every file.