|
|
|
|
Airplane Financing FAQs
If you don't find your airplane loan or aircraft finance questions answered here please contact us.
Cash Out Loans
| Q: |
I am trying to decide if I should use my HELOC to purchase my plane or take out an airplane loan. Can you give me your opinion on this?
|
| A: |
The advantage of an airplane loan is that it keeps your home equity available for future expenditures such as home improvement, investment opportunities, emergencies or vacation. While it is possible to obtain a cash out loan for an airplane, it is not always the easiest or quickest process and most lenders will only agree to a cash out loan if the proceeds are used towards improving the plane. |
| |
view | print | |
| Q: |
Want to information on the phone about an aircraft refinance cash out loan asap.
Thank you
|
| A: |
Janis, please call Vicki at 888-707-3633 ext 116 for information on a cash out aircraft loan. Thanks |
| |
view | print | |
Creidt Challenged Loans
| Q: |
what's the lowest credit score you'll do?
|
| A: |
Heshy,
Our typical credit score cut off is 640 for airplane loans. |
| |
view | print | |
Entity Purchases
| Q: |
I am purchasing an airplane that is owned in an existing shell entity and the seller has offered to sell me the entity as part of the transaction. Will I be able to get a loan to purchase the plane along with the exisiting entity?
|
| A: |
Although this type of structure for the transaction can be accomodated, we recommend that you utilize an attorney's assistance for your protection. Most lenders are going to require an attorney's opinion letter concerning the viability of the entity prior to closing the loan as well. |
| |
view | print | |
Fixed Rate Loans
| Q: |
I am interested in a fixed rate loan. I could not find interest rates on yor web site. What is your best available fixed rate?
|
| A: |
We do not publish rates on our site because they tend to change quite frequently and often times we can find better rates by understanding your situation in detail. Simply click on the Free Rate Quote banner on our site and we will provide you with a quick and customized rate quote tailored to your specific situation. |
| |
view | print | |
| Q: |
Do you offer fixed rate loans for light sport aircraft?
|
| A: |
Fixed rate loans are available for Light Sport aircraft and typically run about a quarter percent higher than other production aircraft. |
| |
view | print | |
General Questions
| Q: |
Does Beacon Aero Credit participate in trade shows?
|
| A: |
Yes, please plan to visit us at Sun n Fun this April. |
| |
view | print | |
| Q: |
When you do an escrow account for a buyer, the buyer puts the money into the escrow account, does the bill of sale, etc. and the seller provides...what? And when the contract is complete, how is the money transferred to the seller? Isn't it a violation of privacy laws to transmit, by phone or email, one's account number, bank name and routing numbers? How is this done?
|
| A: |
Rebecca,
Generally, Beacon Credit does not act as an escrow agent with respect to loan closings. We disburse against any known liens against the collateral, the remainder of the loan proceeds are remitted to the seller with the borrowers' written permission. If you have any additional questins please contact one of our finance specialists at 888-656-9400. Thank you for contacting us with your airplane finance question. |
| |
view | print | |
| Q: |
If your company granted me a loan for a plane would I be able to take the plane to Europe while I am still paying on the loan?
|
| A: |
Jason,
I wanted to follow up with you regarding your question about taking your plane to Europe. After speaking with all of our aircraft lenders we have determined that only a few lenders will allow your aircraft to be taken to Cananda while you are paying on your loan. No one will allow you to take the plane to Europe. Again thank you for your question on airplane financing.
Jason,
Thank you for contacting Beacon Aero Credit with your airplane loan question. To be honest with you I do not currently know the answer but I will find out for you and get back with you shorthly. In the mean time if you prefer you can contact our Airplane loan specialist Mark Freeman at 888-656-9400 for fuuther assistance. |
| |
view | print | |
| Q: |
I would like to learn more about leaseback and I would like to see a typical contract if you have one... I am looking to purchase a 2006 Cirrus and perhaps a 2004 Piper Arrow and would be looking for financing as well...
Thanks!
|
| A: |
Tom,
I am sorry but we do not offer a leaseback program. |
| |
view | print | |
| Q: |
Greetings,
I am interested in purchasing a late 70s or early 80s Mooney M20C for around 50-65,000. I have 10% to put down. My wife and I are in ministry and over the last few years it has grown very fast. We do a lot of regional travel. My brother is an AMP and will maintain and pilot the aircraft. My credit score is just over 640. By the loan Calculator and adding a couple hundred dollars on top, I can do this. However, I only have proof of my current amount of income for 2007. My wife the Co-signer does not have but $400mo provable income. Total (provable) Monthly income is 3400.00mo, bills are 1800.00mo Total income with other incomes Total: 4,100mo
I could pay cash for this aircraft through our ministry, but could face scurtiny so I have decided to purchase it myself if it is possible.
Is this Possible?
|
| A: |
Douglas,
Thank you for your interest in aircraft financing. I will have one of our loan specialists call you today to discuss your situation in more detail. |
| |
view | print | |
| Q: |
I purchased a 1975 Cessna 180 in August of '07. I purchased the aircraft outright. It's current market value is about 130K. I was wondering if it is still possible to finance a portion of the aircraft, perhaps 50K or so. Regards, Tim, East Haddam, CT
|
| A: |
Tim,
I will have one of our finance specialists call you and discuss you financing needs in more detail. Thanks for contacting us. |
| |
view | print | |
| Q: |
Hi,
i'm looking for an aircraft lender to help. Not showing any income for 06 in order to erase capital gains from 05. 07 returns not filed yet. Lender on my first airplane can't help. Hoping you maybe can.
Noel Hudson
|
| A: |
Noel,
Thank you for contacting us with your airplane loan question. One of our aircraft finance specialists will call you at the number you listed in your e-mail to see if we can help you with your current aircraft financing needs. In the mean time feel free to complete our secure on line loan application at no cost to you. |
| |
view | print | |
| Q: |
my question is do you fund the big jumbo jets? quick quote on loan?
|
| A: |
Monty,
Currently we do not have the funding capabilities to fund Jumbo Jets. |
| |
view | print | |
| Q: |
Hello - we will closing on a 1986 Piper Archer II today. We are paying cash, but want to know our options for taking a loan out to repay ourselves, and have our LLC have a loan on the aircraft. The aircraft quote link was not working for us, as it wanted to know current terms, and monthly payment, etc... The preferred method of contact is email, but call if you need more details.
We would like to finance approx $50,000.00 the aircraft purchase price + tax is approx $82000.00
Thanks for looking into this - Eamon
|
| A: |
Eamon,
Somone will call you shorthly to discuss your loan request. Thanks for contacting us with your question. Thanks. |
| |
view | print | |
Loan Requirements
| Q: |
What documentation and/or verifications should I expect to provide to get qualified for an airplane loan?
|
| A: |
The amount of documentation will depend on the size of the loan request. For loans in excess of $150,000, prepared to provide two years personal and business tax returns (if applicable), current proof of income and liquidity. A complete loan application along with an up to date personal financial statement. Of course, a complete description of the plane you are purchasing is required as well. |
| |
view | print | |
| Q: |
Hello, I have a client interested in purchasing one of our LSA and I would like to know what are your current requirements, rates, terms, etc... Please email me the info as soon as possible.
Thank you,
Christopher Regis
Paradise USA
|
| A: |
Christopher, your client will need to complete an aircraft loan application and submit it along with proof of income and liquidity. |
| |
view | print | |
New Purchases
| Q: |
I am purchasing a helicopter and was wondering if you offered loans to accomplish this?
|
| A: |
Yes, we can finance helicopters. Our program allows for loan terms up to 120 months. |
| |
view | print | |
| Q: |
I am considering purchasing an old taildragger and I was wondering what the maximum age aircraft is that you will finance?
|
| A: |
Most lenders will only finance airplanes dating back to 1960. However, we can offer financing on any age airplane with the appropriate documentation. |
| |
view | print | |
| Q: |
How long does it take to get a credit decision for an aircraft loan?
|
| A: |
For loan amounts up to $500,000, and upon receipt of a complete loan package, we can process your request the same day. Loans over $500,000 can be processed within 72 hours. |
| |
view | print | |
| Q: |
I am purchasing a new airplane and my local bank has approved me for a loan. The only thing is that the loan has a balloon payment in 36 months. Do you offer purchase money loans that do not have balloon payments?
|
| A: |
We offer loans that are fully amortized for up to 25 years. We also offer balloon loans, however, we only recommend them if you plan to own the airplane for a short period of time. Specifically, shorter than the balloon period. |
| |
view | print | |
| Q: |
I am considering buying an LSA (probably an AMD Zenith 601XL) and placing it on leaseback with a local FBO here in Kansas. Do you offer financing and is insurance available for LSA in a rental situation?
Thank you.
|
| A: |
We can finance this aircraft and there should be insurance available but he would need to research that for you. If you are interested in financing with Beacon AeroCredit please contact Mark Freeman at 888-656-9400. Thanks. |
| |
view | print | |
| Q: |
I have considering two different airplanes. Should I apply for my loan now or wait until I decide on which airplane I plan to purchase?
|
| A: |
If you are committed to purchasing an airplane, there is no cost to get pre-qualified for your purchase in advance of deciding on which plane to buy. As a matter of fact, knowing how much you qualify for in advance, can assist in making the purchase experience more efficient and eliminate wasting time. |
| |
view | print | |
| Q: |
What term lengths do offer on new weight shift aircraft purchases?
Chad
|
| A: |
Chad,
Thank you for your interest in Beacon AeroCredit. Unfortunately, we do not offer aircraft financing for this typr of aircraft. If your plans change please contact us for future consideration with your aircraft financing needs. |
| |
view | print | |
| Q: |
Hi,
I am looking at a 1968 310N..It's been owned by an A&P and is in top shape with new pant, interior, and avionics suite. I don't have an issue with qualifiying for a loan...but the major sources don't want to loan on THIS plane because it is older than 1970 and has over 10,000 airframe hours. We are only looking at about a 35K loan...Vref is about 60K..do you have sources for that type loan. Thanks pk
|
| A: |
Paul,
Please contact Vicki at 888-7070-3633 ext 16 for more information on your purchase. Thanks.
P.S. I have confirmed that we can finance plane that are this old. Please call us today. |
| |
view | print | |
No Income Verification
| Q: |
What are your credit score requirements for the NIV aircraft loans, and do any of your lenders accept personal bank statements as proof of income
|
| A: |
David, our NIV, or No-Doc Program as we call it, is available for Aircraft loan transactions up to $250,000. The minimum FICO requirement for both applicant and co-applicant, if there is one, is 720. The beauty of this program is that there is no need to submit any type of income verification or liquidity statments, however, in the event that the lender does require some form of income verification, bank statments reflecting direct depostis are acceptable. Other No-Doc program requirments include a minimum 10 year credit history, maximum loan advance of 90%, maximum debt to income of 40%, the applicant must have comparable credit equal to 50% of the requested airplane loan amount and finally this program is not avaialbe if the airplane is going to be used for leaseback/charter operations. Please let us know if we can assist you with your airplane financing nees by calling us at 888-656-9400 and ask to speak to one of our aircraft loan specialists. |
| |
view | print | |
| Q: |
Do you offer stated income loans and if so what are your parameters?
|
| A: |
Yes, we do offer these type of loans for loan amounts up to $150,000. The criteria varies, but for the most part, we consider your credit score, comparable borrowings and your income level in relation to the loan request. |
| |
view | print | |
| Q: |
Can you tell me what exactly is a no income verification loan?
|
| A: |
A no income verification loan is when a lender uses the income stated on the loan application to process a loan request, instead of the traditional process of collecting two years of tax returns and current paystubs and/or financials. Of course, the lender still evaluates your credit profile and the value of the collateral being financed (in relation to the requested loan amount). |
| |
view | print | |
| Q: |
I recently started my own company and I am considering purchasing a new airplane. I have been a pilot of 17 years with an excellant track record. My question is if I should apply stated income since my company is still new?
|
| A: |
While most lenders offer stated income loans for self employed individuals, they do require that the company be in business for more than 2 years. If you can prepare internal company statments and an updated personal financial statment we can process your new aiplane purchase request. |
| |
view | print | |
| Q: |
I have substantial assets, but a very efficient accountant. I can show limited income in 06, but much more substantial in 07. Trying to get an 02 Saratoga, I already have 100K down, but got turned down due to not having 2 years worth of good income. I need 280K more... can you help?
|
| A: |
Wayne,
There is a chance we may be able to help you with your aircraft loan request. I will have one of our loan specialists give you a call to review your situation in more detail. Thank you for contacting us with your question and we look forward to working with you in the near future. |
| |
view | print | |
Refinancing
| Q: |
I am interested in updating the avionics in plane. Can I refinance my loan and take cash out to accomplish this?
|
| A: |
The short answer is yes. It will depend on the available equity in your plane and the value of the avionics you are considerig. |
| |
view | print | |
| Q: |
My currently airplane is financed through my company with my business partner and I am buying the plane from him. My question is do I have to refinance the loan or can I have the bank modify the existing loan?
|
| A: |
Most lenders are not going to want to release a borrower of an obligation through a modification. The most prudent process for you and the bank is to refinance the loan and qualify in your name alone. |
| |
view | print | |
| Q: |
I recently refinanced my airplane loan with a competitor and not only was the rate higher than quoted they charged me an unexpected fee. I would like to take my business elsewhere. What do you suggest?
|
| A: |
You can certainly refinance your airplane loan again and we will be more than happy to help. Depending upon how long you plan to keep your current airplane will be a big deciding factor and you should confirm that there are no prepayment penalties for early pay off. We offer both fixed and variable rate loans with no prepayment penalties and our closing fees generally will not exceed $500. |
| |
view | print | |
| Q: |
I recently purchased an aircraft at a Government auction. It's a 1969 Piper Navajo. I purchased the aircraft for $27,000. Because I had to pay in cash within 2 days of the auction, I needed a way to get cash quickly. I went to my local bank and was able to get a personal signature loan for $15,000 to come up with the rest of the cash needed to buy the aircraft immediately. The bank loaned me the money with a 60 day term.
I intend to resell the plane eventually but I need to put some work in it first. My original intention was to get a home equity loan to repay the personal signature loan. However, I'd rather not do that if I don't have to.
My question: Is it possible for me to refinance this aircraft with an aircraft lender even though I don't currently have a "aircraft Loan"?
|
| A: |
Drew,
Please contact Mark Freeman at 888-656-9400 to dicsuss in mor detail. |
| |
view | print | |
| Q: |
I am shopping for a re-fi on my plane. I have a low time (engine 500 SFRM) 1956 Cessna 182 that has major upgrades (O-520 engine, Wing-X Wing Extensions, etc) and have been paying 3 years on 7.75% fixed rate...10 year note...balance $55K. I want to add $10K for total of $65K.
What kind of interest rate could I expect for a 9-10 year note?
Thanks,
Bob
|
| A: |
Bob, interest rate have come down recently and you can expect a rate in the low 6 percent range. Thanks for your question on airplane refinancing |
| |
view | print | |
| Q: |
I have one client that paid cash for his plane and now needs cash out. Another wants to purchase a plane. I have several questions. 1. I am a Broker with 44 years of lending experience. Will you do business with us? Can I charge Broker fees What is allowed? Can I email applications to you? What LTV will you go? Wholesale? Retail? Can I use a standdard loan applciation?
thnaks,
Jon
|
| A: |
Jon,
I will have someone contact you tomorrow to see what we can do for you and your clients. |
| |
view | print | |
Home |
Contact Us |
Site Map |
Apply Now |
Free Rate Quote
|
|
|
|
|
