Airplane Financing: How It Works, Lenders, Rates and Terms.
Everything that decides an airplane loan: how the process runs, who lends, the terms and rates published today, the credit score and down payment lenders expect, and when a lease fits better.
Airplane financing works like other secured lending: a bank, specialist aviation lender or credit union lends against the aircraft, usually after a down payment of 10% to 30%, over terms of up to 20 years for piston aircraft. AOPA Aviation Finance says most lenders look for a credit score of at least 700, and lenders base the loan on the purchase price or appraised value, whichever is lower.
Key takeaways
- Lenders base the loan on the lower of the purchase price or the appraised value, per AOPA Aviation Finance.
- Published piston terms run 5 to 20 years; turbine loans commonly use a 15-year amortization with a 5-year term and a balloon.
- Expect 15% down on most piston aircraft (20% on pre-1960 aircraft, 15% to 30% on twins), and as little as 10% on some turbine aircraft.
- Most lenders look for a 700 credit score, but debt-to-income, liquidity and comparable borrowing history usually matter more.
- Business and commercial use (flight schools, Part 135 charter) changes the terms; tell every lender how the aircraft will fly.
How does airplane financing work?
An airplane loan is a secured loan: the lender records a lien on the aircraft with the FAA and can recover the aircraft if the loan is not repaid. The process usually runs in five steps.
- Pick the aircraft, or narrow it down. AOPA Aviation Finance says the more specific you can be the better, because terms, down payment and rate depend on the airplane. A spec sheet lets the lender check value against guides such as Vref or the Aircraft Bluebook.
- Apply. Lenders typically ask for two years of tax returns, W-2s and a current income statement, and they want to know the intended use: personal, business, leaseback or charter. Businesses add financial statements; see what to prepare before applying.
- Get approved. AOPA Aviation Finance notes airplane loans are not usually approved on the spot; a thorough credit review usually takes a few days.
- Inspect and value the aircraft. Lenders finance against the purchase price or the appraised value, whichever is lower, so a pre-buy inspection and an appraisal can change the loan amount.
- Close. Title search, escrow, FAA registration and recording the lender's lien happen at closing; see how title, liens and escrow work.
Who offers airplane financing?
| Lender type | What they tend to finance | Worth knowing |
|---|---|---|
| Specialist aviation lenders and lending networks | Pistons through jets, personal and business use | Know aircraft values and logbooks; AOPA Aviation Finance and FLYING Finance publish program terms and starting rates |
| Banks | Larger loans, often turbine and jets, often for existing clients | Typically asset-backed with the aircraft as collateral, per AvBuyer; may price on the relationship |
| Credit unions | Smaller personal-use loans, often on piston aircraft | Some publish aircraft rates; limits such as loan size, horsepower or personal use apply |
| Lessors | Finance leases, operating leases and sale-leasebacks | An alternative when you want less cash down or do not want to carry resale risk; see the aircraft leasing hub |
Commercial operators have a narrower field: AvBuyer reports that some lenders will not finance Part 135 charter at all, while others specialize in it. JetFinex is not a lender; it presents an operator's request to lenders and lessors whose criteria fit.
What airplane loan terms can you get?
| Aircraft | Term | Down payment |
|---|---|---|
| Single-engine piston | 5 to 20 years (20 years only on loans of $75,000 and above) | 15% on aircraft newer than 1960; 20% for older aircraft |
| Multi-engine piston | Maximum 10 to 15 years | 15% to 30%, depending on age |
| Turbine and turboprop | 15-year amortization with a 5-year term, as standard | Could be as low as 10%, depending on the aircraft |
When the term is shorter than the amortization, a balloon is due at the end. Older aircraft, high-time engines and commercial use usually mean shorter terms. More in airplane loan terms explained and balloon payments.
What are airplane loan rates right now?
Published starting rates checked on October 19, 2026 included certified piston from 6.52% (FLYING Finance); turboprop and jet from 6.66% (FLYING Finance); single-engine piston at 6.99% to 9.99% (AOPA Aviation Finance). Starting rates go to strong borrowers on newer aircraft with larger down payments, so most quotes land above them. The full table by aircraft type and loan size, with Treasury, SOFR and prime benchmarks, is on aircraft loan rates today, updated monthly.
What credit score do you need to finance an airplane?
AOPA Aviation Finance says most lenders look for a minimum credit score of 700. AOPA describes lenders sorting scores into four bands: under 680, 680 to 699, 700 to 729, and 730 and over. Scores start to affect approval below 700, deals are difficult below 680, and in practice a 730 is as good as an 800.
The score is rarely the deciding factor. AOPA Aviation Finance says it is more often debt-to-income, liquidity and whether you have handled comparable debt before. For rate pricing, it describes the best pricing going to applicants with more than 18 months of liquidity and debt-to-income under 35%. Businesses are judged on cash flow, existing debt service and the revenue the aircraft will produce. If you are borrowing through a company, expect a request for a personal guarantee.
How much down payment do you need for an airplane?
Usually 15% for piston aircraft built after 1960, more for older aircraft and twins, and as little as 10% for some turbine aircraft, per AOPA Aviation Finance. FLYING Finance lists up to 85% loan-to-value on new certified aircraft and 82% on used certified aircraft under 10 years old, which also works out to 15% to 18% down. On aircraft above about $150,000, AOPA Aviation Finance says a larger down payment can also lower the rate. See aircraft loan down payments by aircraft class.
What does an airplane loan cost? A worked example
These numbers are hypothetical and only show the math. Suppose a $250,000 airplane with 15% down ($37,500), financing $212,500.
A shorter term costs about $258 more a month here but saves about $56,000 in interest; a one-point higher rate adds about $132 a month. Try your own numbers in the aircraft loan calculator. Insurance, hangar, maintenance and taxes come on top.
Should you finance or lease the airplane?
Finance when the airplane is core to your flying or business for years and is likely to hold its value; you build equity and, for business use, may be able to depreciate it (ask a tax advisor). Lease when flexibility and cash matter more than ownership, or when you do not want to carry resale risk. A finance lease sits in between: lease paperwork, with ownership at the end. Compare them in the aircraft leasing hub and the lease vs finance calculator.
How is airplane financing different for businesses and operators?
Lenders underwrite a business on the operation, not just the owner. Flight schools are judged on enrollment and hours flown per aircraft; charter operators on contracts and utilization, with AvBuyer reporting shorter terms, higher rates and lower advance rates for Part 135 use; corporate flight departments on the company's financials and how the aircraft will be operated. See the guides for flight schools, charter operators and corporate aviation, and jet financing for business jets.
Airplane financing checklist
- Aircraft spec sheet and logbook summary, or a short list of serial numbers
- Two years of tax returns and a current income statement (businesses: financial statements)
- Your credit report, checked for errors before you apply
- Cash for the down payment plus reserves
- Intended use and expected annual hours
- Insurance quote for the aircraft and use
- Pre-buy inspection plan and timeline
Score yourself with the deal readiness score. This page is general information, not individual advice; lenders set terms case by case. When you are ready to compare real offers, you can start a deal file with JetFinex.
Aircraft loan calculator
Monthly payment, total interest and balloon for any price, down payment, rate and term.
Airplane financing guides
Frequently asked questions
How long can you finance an airplane?
AOPA Aviation Finance lists 5 to 20 year terms for single-engine piston aircraft (20 years only on loans of $75,000 and above), 10 to 15 year maximums for piston twins, and a 15-year amortization with a 5-year term as standard for turbine aircraft.
What credit score do you need for an airplane loan?
AOPA Aviation Finance says most lenders look for a minimum of 700. Scores below 680 make deals difficult, and a 730 is treated about the same as an 800.
How much do you need to put down on an airplane?
Typically 15% on piston aircraft built after 1960, 20% on older aircraft and 15% to 30% on twins, and as little as 10% on some turbine aircraft, per AOPA Aviation Finance.
Is it hard to get financing for an airplane?
Not for a strong borrower buying a common, well-documented aircraft for personal or business use. It gets harder with scores below 680, high debt-to-income, little liquidity, very old or high-time aircraft, project aircraft that are not yet airworthy, or commercial use such as charter.
Can you finance a used airplane?
Yes. Most airplane loans are on used aircraft. Lenders look at age, airframe and engine time, avionics, damage history and records, and finance against the lower of the price or appraised value. See financing a used aircraft.
What are airplane loan rates today?
See aircraft loan rates today for the current table of published rates by aircraft type and loan size, updated monthly with Treasury, SOFR and prime benchmarks.
Sources
- AOPA Aviation Finance, Demystifying the aircraft loan process
- AOPA Aviation Finance, What is the minimum credit score requirement to get a loan on an aircraft I own?
- AOPA, Turbine finance: understanding credit (2022)
- AOPA Aviation Finance, I'm looking to upgrade. What rate is normal for me?
- AOPA Aviation Finance, Piston aircraft financing
- AOPA Aviation Finance, Turbine and turboprop financing
- AOPA Aviation Finance, Does my down payment affect my interest rate?
- FLYING Finance, Aircraft loan rates
- AvBuyer, How does business aircraft finance work?
- AvBuyer, Part 91 and Part 135 operations: aircraft financing differences
JetFinex is not a lender. This page is educational and not an offer, quote or commitment to lend. See our editorial standards and disclosures.
