Question: What is the impact of bankruptcy when applying for a loan?
Answer: Bankruptcy is generally a problem with most lenders. There are instances where a lender can get passed a bankruptcy, however, they will want to ask the following questions:
• What caused the bankruptcy?
• What type of bankruptcy? Chapter 11/13 vs Chapter 7?
• What has your credit history been and how long has it been since the bankruptcy was finalized?
The lender will need to see evidence of good credit history since the bankruptcy and feel comfortable that it was a one-time event. If they are able to provide an approval you should expect a higher interest rate, more money down, as well as a shorter loan term.
Question: When I am ready to take the plunge, what documentation would I need to provide in order to apply for an aircraft loan from AOPA? I assume the usual stuff like bank docs?
Answer: Aircraft lending is a bit different than most other loan products you are likely used to. The process and documentation is like that of a mortgage. Along with our signed credit application, our lenders require two years of personal tax returns and W2s. A current paystub would also be required. If you are self-employed or a business owner, additional business financials will be needed. A comprehensive list of required documentation based on your income situation can be found on our website.
Have questions for Adam? He is happy to answer them. Submit your questions here.
Great rates. Great terms. Helpful and responsive reps. Three good reasons to turn to AOPA Aviation Finance when you are buying an airplane. If you need a dependable source of financing with people who are on your side, just call 800.62.PLANE (75263) or click here to request a quote.
Have a specific aviation finance question you would like to see in future articles? Submit it here, and it may be highlighted in an upcoming content piece.