financing EAB vs E-LSA

[dbhill916]

Hi folks,

I just ran into an interesting road block. I've applied for a loan through NAFCO and was just told that since I'm planning on registering as E-LSA, they can't register the aircraft (in order to put on a lien) until everything is purchased from Van's. I can't purchase everything (today) from Van's without the loan. They will consider the loan if I go EAB.

Has anyone else run into this?

 

[kritsher]

I used First Pryority Bank in Pryor, OK. They finance a lot of experimentals and had no issues financing ELSA.

 

[uuacallis]

While I have yet to get to that point yet, I suspect that you can "escalate" it with them. Ask them to give you the approval with funding contingent on you filing the registration as soon as you legally can with their lien on it. I have had other loans (non aviation related ) with normal banks and have found that they can be willing to do it.

I hope this works out because my cash reserves for my airplane will run out after the fuse kit. So at that point I a, looking for a loan to buy the remaining kits.

 

[bhassel]

I have gone (am going through) NAFCO for my RV12 ELSA loan. I've had the feeling that I was one of their first customers for the RV12 ELSA.

They want a 'Affidavit of Ownership' from Van's to file with the FAA. Van's can't issue one until the engine is ordered. The form wants the engine serial number. I've tried to explain to them (NAFCO) as we've gone along the 12 is a different animal from just about anything else in the experimental world. Every time I get an email mentioning the 'Affidavit' I explain that it can't be issued until the engine is ordered.

I'm not sure where my NAFCO process is at currently. Van's has their money for what I've ordered, I have my emp/tailcone (which I bought previously) and a few weeks ago my wing, fuse and finish kits arrived. I expect to order the engine and avionics after the first of the year or as soon as my fuse kit is finished. (I can't believe how fast these go together and how much head I'm not scratching).

I'm not sure what will happen and even though the remaining kits will be ordered a few months down the road, the boss and CFO has everything laid out for those target dates. We really needed that breathing room.

I also used the emp/tailcone kit that I bought as part of the down payment along with a couple of grand, for the remaining kits. That really helped get me into the 12 kit and the building fun. Without these timings between the kits, etc. I could not have done this.

Also, << NOTE >> you will need an N number. Apply for it now, on line. Make sure that if you are going to finance and your spouse/partner are part of the loan that they are also on the N number application form (on-line) as well as the registration. I didn't realize the N number issue, and the FAA was 4 or 6 weeks behind in processing the applications. That took some downtime while we all waited (including NAFCO).

Except for the issues that are unique to the 12, NAFCO has been very helpful. I've never done anything like this before and its a lot like buying a house.

I've relied on them to help me through the process. I hope a way is figured out for people to use this service to get into RV-12's. I've waited most of my life to do something like this and now the dream is coming true. I hope yours does too.

Bob