Hangar financing?

AX-O · #1 04-28-2009, 05:21 PM

Guys,
just wondering how you financed your hangar. We don?t have hangar space at our local airport. The waiting list is from 3 to 6 years. I am lucky that I can sub-lease a hangar for my C-140 from a gentleman that totaled his plane. He has not purchased another plane yet. My RV will need to go to the airport in a few months (I hope). I don?t know when he will purchase another plane and if I can keep using the current T-hangar, I will not have enough space to work on the RV.

I checked with my local credit union and they said that the only way to finance the hangar would be if I take out a personal loan. Currently at 11.25 to 12% APR. That is outrageous in this economy. Especially when you can get a mortgage loan for less than 5%. Any help or guidance with this matter is appreciated.

Mel · #2 04-28-2009, 05:44 PM

Just a guess, but they probably won't accept the hangar as collateral because, if the hangar is not on land owned by you, they would have no "hold" on it.

rleffler · #3 04-28-2009, 05:45 PM

I know quite a few folks that used home equity loans to get a better rate.

gbrasch · #4 04-28-2009, 08:51 PM

Ditto to the home equity loan, which you can still deduct the interest on your taxes.

plehrke · #5 04-29-2009, 04:38 AM

Home Equity loan only way to get good rate and tax deductiable interest.

larryj · #6 04-29-2009, 04:10 PM

Some commercial lenders will work with financing a hangar also. Ask around your airport and hopefully someone else has had experience with a local banker that has put one of those deals together. Most lenders don't have any experience with something like a hangar but if you can find one that has done it they won't be so skeptical. Commercial loans typically require a higher down payment and run a little higher interest rate. Probably the least expensive way currently would be to refinance your home; giving you a better interest rate and the option of a 30 year term. Remember when working with any lender / banker; everything is negotiable.

pierre smith · #7 04-30-2009, 05:48 AM

.....should at least listen to your request. Mine has both my hangar and Air Tractor paper, now in the low 7% or less. PM me for my banker's telephone #'s if yours will consider it. My hangar has doubled in value in the 11 years I've had it, so it really is its own collateral.

Regards,

prkaye · #8 04-30-2009, 10:14 AM

I built mine with a 50% partner. Our total was about 60K CAD. For my half, I got a "secured line of credit" (line of credit secured by my house). It's variable rate, but right now that rate is 3.25%. I also put the engine purchase on it (and I'm consequently loving today's low interest rates).

DBone · #9 04-30-2009, 11:12 AM

Just a few months ago I tried to get a loan for hangar purchase. Commercial was the only way I could get a loan done. In the end, they wanted 50% down and the terms were 5 yr balloon amortized over 15 years at 7% with a 1% origination fee plus a $2k "commercial" appraisal. I told them to take a hike!

Aviator168 · #10 04-30-2009, 12:23 PM

Quote:

Originally Posted by prkaye

I built mine with a 50% partner. Our total was about 60K CAD. For my half, I got a "secured line of credit" (line of credit secured by my house). It's variable rate, but right now that rate is 3.25%. I also put the engine purchase on it (and I'm consequently loving today's low interest rates).

60K for a hangar?

You can almost build another plane with that money.