Aircraft financing company recommendations

[BigAirHarper]

So 2016 is the year of the Mooney for me:) I'm just curious what finance companies any of you have used in the past or currently and have had good luck with. I've been looking at working with AOPA but any feedback is greatly appreciated!

[M016576]

5 minutes ago, BigAirHarper said:

So 2016 is the year of the Mooney for me:) I'm just curious what finance companies any of you have used in the past or currently and have had good luck with. I've been looking at working with AOPA but any feedback is greatly appreciated!

I used aopa (BofA) in the past, and now am using USAF.  USAF is about 1.5% apr cheaper with the same service.  I certainly recommend them for their rates and service.

[carusoam]

I used the same, AOPA/BofA...

They did a great job of handling all the details that are specific to plane ownership.  They were easy to talk to make sure I had all the details to protect me from the unknown.

After I owned the plane for a year. Refinancing it made sense with the change of interest rates.  I did this locally.

interest rates are incredibly low now.  A 30yr fixed home loan is under 4% according to CNBC today.  Plane mortgages will be higher...

Best regards,

-a-

[Hank]

I used my local Credit Union. Membership was open to,anyone who lived or worked in the area. Very low interest rates. They had several loans at my home field.

[amillet]

USAF. 3.99% 20 year loan last month to finance new engine & avionics

[M20F]

Wings Financial 

https://www.wingsfinancial.com/loanrates

 

[Yetti]

Finance it yourself.  Get a margin account put some stock in it. Write a big check, The interest is now deductible as investment expense.  Just make sure the stock does not go down or you will get margin called and have to come up with some cash.   Not an accountant, not a lawyer, did not sleep at a Holiday Inn last night

[jetdriven]

"Just make sure the stock doesn't go down."

 

[MitchS]

I used these guys - http://afreedomloan.com/ they were awesome when I bought my Mooney, and great with the refinance I did this year for Avionics Upgrades too.

[BigAirHarper]

Thanks for all the recommendations! I'll be contacting them to see what rates they offer. Anything around 4% would be amazing. 

[Bolter]

Am I the only one who used Airfleet Capital?  They are at several aviation events, so I thought they were quite well known.  I was treated well during my purchase, and for years later, still remembered if I called for something (like refinancing questions) or saw someone at an event.  I have no problem endorsing them for being professional and well as personable.

http://www.airfleetcapital.com/

-dan

[LevelWing]

I went through NAFCO. They were really helpful and very patient with as I went through several pre-buys.

On a side note, and this may be a little dumb on my part, but I didn't realize you could re-finance an aircraft loan. It makes sense, though. I'm going to look into this and see what it looks like. 

[carqwik]

I used Airfleet Capital...Jim Blessing...they are loan brokers so they can shop for the best deals I presume...

[anthonydesmet]

I used Dorr Aviation in 2014.  Their rates were a 1.5% lower than AOPA/BOA.  In July 2014 I received 5% for 15 years with 15% down.

 They were outstanding and if you are going to finance you plane in an LLC, they will walk you through it.  

With all the refi talk I think I may look into it also plus I have a tank reseal coming up.

[kpaul]

+1 for Dorr Aviation.  I just closed using their services in December.  They were great to work with, I will use them if I need a refinance in the future.

[carusoam]

Be sure to Always read every line of the documents.  It is possible that an aviation loan may have some things that preclude refinancing. The Things that make home loans friendly are there because the government wanted people to own their own homes.

The same government is not so helpful when it comes to airplanes.

Don't get surprised,

-a-

[Oldguy]

I used AOPA/BofA for my J, but they had a limit of 30 year-old planes when I did. Since mine was 29, it was okay, but they did say nothing over 30. Don't know if they have changed or if you would be buying something newer than 30.

John

[BigAirHarper]

15 hours ago, anthonydesmet said:

I used Dorr Aviation in 2014.  Their rates were a 1.5% lower than AOPA/BOA.  In July 2014 I received 5% for 15 years with 15% down.

 They were outstanding and if you are going to finance you plane in an LLC, they will walk you through it.  

With all the refi talk I think I may look into it also plus I have a tank reseal coming up.

Might be a topic for a new thread but do most of you guys have the plane in an LLC? 

[flight2000]

34 minutes ago, Oldguy said:

I used AOPA/BofA for my J, but they had a limit of 30 year-old planes when I did. Since mine was 29, it was okay, but they did say nothing over 30. Don't know if they have changed or if you would be buying something newer than 30.

John

What was the time frame for your loan?  I used AOPA/BoA back in 2009 and mine was over 30 at the time (it was 42 years young at that point).

Cheers,

Brian

[FlyWalt]

After their participation in the 2008 mortgage fraud scandals I have made a point of NEVER doing business with Bank of America. Why AOPA lines up with them I do not know. It is a very competitive market though.

[cnoe]

7 minutes ago, FlyWalt said:

After their participation in the 2008 mortgage fraud scandals I have made a point of NEVER doing business with Bank of America. Why AOPA lines up with them I do not know. It is a very competitive market though.

AOPA set up my loan at the end of 2013 with Pilot Bank and NOT Bank of America. I couldn't be happier. After being a long-time BOA customer I recently closed all our accounts and moved on due to their policies.

My J is a '78 and there was no issue with the plane's age. The rate was favorable on a 20 year loan.

[jonhop]

I used AOPA, who referred me to NAFCO. My loan is now owned by Pilot Bank and so far so good. Rates were 5.25%, 15 or 20yr, and 15 to 20% down up to $125k. The loan fee was $640.00. I had the cash to buy outright but that would've left me with no reserve in case of expensive repairs/issues. Hope to pay it off in two years... Some things to be aware of if using NAFCO/Pilot Bank. They will require a pre-buy inspection signed by a third party A&P. A pre-buy inspection should go without saying but them needing a signed copy delayed my financing because my A&P went on vacation to England for two weeks. I had to wait for him to return to get his signature. They will also require an auto-draft of the loan amount from a checking account or the rate will go up by 1%. They were fast in delivering the money and performed a title search, so that was a bonus...

Good luck on your purchase!

[druidjaidan]

I went through NAFCO who brokered the loan through Pilot Bank.  I'm very happy with them, everything from their side was well handled, prompt, clear, and helpful.  The only SNAFU at all we had was they sent me one copy of a document they wanted two copies of back (one for myself and one for my wife).  They where "very strict" on paperwork as the broker would have put it.  There were some very minor clerical title issues with the plane and they held firm to the broker trying to get them to agree to finance it as it was.  It was actually a good thing from my perspective because now I have a plane with a pristine clear title instead of having to fight the broker about hard to fix ancient title issues from the 70's.

[kpaul]

I initially applied through AOPA and they sent me a quote through Pilot Bank.  After nearly a week of no reply's to questions I had (both AOPA & the Bank) I contacted Dorr.  Not only did they respond to every email, but also were very friendly during phone conservations.  They drew up papers 3 different times (1st plane crashed before closing, 2nd failed pre buy). 

I highly recommend contacting Bob Howe (Dorr President) he even calculated the values of over 10 aircraft for me during my search which help me get a good deal on my aircraft.  Dorr, actually Heidi (loan coordinator) took care of everything and always overnighted any documents.  She also coordinated with Aerospace Reports for escrow/title services.  The sale was easy for both the buyer and seller

http://www.dorraviation.com/Home.aspx

[jetdriven]

This was 5 years ago but at that time, Dorr had a 75k loan amount minimum.  Is this still the case?