How to Finance an Airplane in 2026: Step‑by‑Step Guide

What is aircraft financing?

Aircraft financing is a loan or lease arrangement that provides the borrower with funds to purchase, refinance, or lease a fixed‑wing or rotor‑wing aircraft.

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Why aircraft financing matters in 2026

The aviation asset market rebounded in 2024‑2025, with total aircraft loan originations rising 7% year‑over‑year, according to the Equipment Leasing and Finance Association (ELFA). Lenders are offering tighter spreads, but the demand for private‑jet and flight‑school financing remains strong.

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Aircraft loan pre‑qualification 2026

Credit score – Minimum 680 for conventional loans; 720+ for the best rates.

Debt‑to‑income (DTI) – Preferred DTI ≤ 35% of gross income.

Down payment – 10‑20% for new aircraft; 20‑30% for used.

Collateral – The aircraft itself, sometimes supplemented by personal or business assets.

Documentation – Tax returns (2 years), pilot qualifications, aircraft appraisal, and a detailed business plan for flight‑school borrowers.

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Step‑by‑step guide to securing an aircraft loan in 2026

1. Assess your financing need – Determine purchase price, down‑payment amount, and desired loan term.
2. Gather financial docs – Recent tax returns, balance sheets, cash‑flow statements, and personal financial statements.
3. Get a professional appraisal – Required by most lenders to establish loan‑to‑value (LTV).
4. Choose a lender type – Traditional bank, specialty aviation lender, or SBA program.
5. Submit a pre‑qualification package – Include the appraisal, pilot’s license, and aircraft specifications.
6. Review offers – Compare interest rates, fees, amortization schedules, and prepayment penalties.
7. Select a loan and lock the rate – Fixed‑rate loans are common; variable rates may be available for shorter terms.
8. Finalize documentation – Sign loan agreement, provide insurance certificates, and complete the UCC filing.
9. Close and fund the loan – Funds are wired to the seller; you take title and insurance.

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Fixed‑wing aircraft lender comparison

Lender	Avg. Rate 2026*	Max LTV	Typical Term	Notable Feature
Big Bank (e.g., JPMorgan)	4.75%	85%	5‑12 yrs	SBA 7(a) partnership
Specialty Aviation Lender (e.g., Aviation Capital Group)	5.10%	90%	5‑10 yrs	Faster approval for used jets
Credit Union (e.g., Navy Federal)	5.30%	80%	5‑15 yrs	Lower fees for military members
SBA 504	5.25%	80%	10‑20 yrs	Low down‑payment for qualifying businesses
*Average rates from Q2 2026 data reported by ELFA.

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How to finance a used aircraft

Can I finance a used aircraft? Yes. Lenders treat qualified used aircraft similarly to new ones, though LTV ratios are typically 70‑80% and rates may be 0.25‑0.5% higher. An up‑to‑date FAA aircraft valuation is essential.

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Aircraft refinancing options 2026

Refinancing can reduce your APR by 0.5‑1.0% and extend the term for lower monthly payments. Many lenders offer cash‑out refinancing up to 75% of current market value, useful for upgrading to a newer model.

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Pros and cons of SBA aviation loans

Pros

• Lower down‑payment requirements (as low as 10%).
• Longest terms (up to 20 years) for equipment.
• Competitive rates for qualified borrowers.

Cons

• Lengthy application process (45‑60 days).
• Strict documentation and collateral requirements.
• Limits on loan size (max $5 million for 7(a), $5‑$6 million for 504).

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Bottom line

Securing an aircraft loan in 2026 hinges on solid credit, a clear business plan, and understanding lender-specific requirements. By following the step‑by‑step process and comparing rates, high‑net‑worth individuals and flight‑school owners can lock in financing that matches their operational goals.

Ready to see your personalized rates? Check your eligibility now.

Disclosures

This content is for educational purposes only and is not financial advice. airpost.digital may receive compensation from partner lenders, which may influence which products are featured. Rates, terms, and availability vary by lender and applicant qualifications.