The Cherokee featured in this video is owned by Karl's channel👇🏾 Can you finance the purchase of an airplane? the simple answer is yes. Financing an aircraft is possible. Financing an experimental aircraft is also possible. They just may have a different loan process.
To finance a complete airplane, you simply find a good lender and depending on your income and credit, the lender can borrow you up to 80% of the purchase price, with you putting down the other 20%. Interest rate on the loan will depend on the amount being borrowed, term of the loan and how good your credit is. Keep in mind that you’ll also be required to submit at least 2 years tax returns and income statements.
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To finance an experimental airplane, the process is a bit different. One option is to get a line of credit agains and asset that you already own. Use the line of credit to fund the purchase of the kit and build of the airplane. Then once you have a complete airplane, you now go to a lender to refinance. Again the lender will borrow you up to 80% of the value of the plane. Once you pull that money out, you can go ahead and pay off your line of credit that you initially borrowed.
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