[AX-O]

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]

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]

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

 

[gbrasch]

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

 

[plehrke]

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

 

[larryj]

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]

Your local banker.......

.....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]

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]

i tried...

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]

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.

 

[prkaye]

60K Canadian. This is a 50'x50' hangar with 14' walls (wood frame, steel clad). The concrete slab alone (slab on grade) including the excavation (the ground was really wet last year and we had to bring in a bunch of dry fill) was close to 20K. And steel wasn't cheap either.
But it's a huge space for 2 RVs. Lots of room to build an insulated/heated workshop/office area in the back or up on a mezzanine (a project for another year). In the meantime (neither my partner nor I are finished building our planes yet) we're renting it out for 500CAD/Month, which much more than covers taxes, land lease and interest on our loans.