 About Service Network |
|
|
Products and Services:
|
|
Get airborne with an affordable loan from Alaska USA. Financing is available for all conventional aircraft. What kind of financing does Alaska USA offer for aircraft? Alaska USA offers several financing options for personal use aircraft and commercial aircraft. The information included here provides details about consumer loans for aircraft that are intended for personal use only. For more information on loans for commercial aircraft, please ask about business and commercial loan options. How much financing can I get for an aircraft? For new aircraft, usually 70% of the purchase price. For used, typically 70% of the lesser amount of the purchase price or the value determined by an accepted appraisal and confirmed by the Aircraft Blue Book. For qualified applicants, 100% financing is available. What kind of terms are available? Depending on the amount of your loan, your term can be up to 180 months. For larger loan amounts, you can keep your monthly payments even lower by qualifying for a 20-year amortization with a balloon loan payment option. Do I need to get an appraisal on the aircraft? Yes, on a used aircraft. In conjunction with the appraisal, the credit union also uses public market information, the Aircraft Blue Book, and the purchase price to determine the current market value. The appraisal must disclose detailed information on any deficiencies and list all recommended repairs. Multiple photographs are also required. You may obtain an appraisal from a disinterested aircraft dealer or FAA qualified appraiser. Can I use the aircraft commercially? No. With an Alaska USA consumer loan, you can use your aircraft for personal use only. It is acceptable for members to use their aircraft for business if they are not charging for its use. If there are charges for charters, flight seeing, or leasing, for example, the aircraft is not eligible as collateral. (Ask about separate financing for commercial aircraft if you intend to use the aircraft to generate business income.) Are there other limitations to financing? The credit union can only provide financing for aircraft on which it can become the first lien holder. Any previous liens listed on the title, other than those that the credit union will be paying off as part of the loan transaction, must be cleared prior to loan closing. In addition, the aircraft must be certified for flight. What kind of fees can I expect to pay? You'll need to pay fees for lien filing and title search; these can be added to your loan amount. What about title approval? Once the aircraft has been selected and the loan approved, Alaska USA will obtain a title search to confirm ownership and lien status. What about documentation? You'll need the following:
All documentation presented to the FAA must be originals signed in ink. Alaska USA will provide all the necessary forms for registering the aircraft and perfect the lien with the FAA. The credit union also files a UCC-1 form with the appropriate state(s). What insurance is necessary? Insurance requirements include proof of in-flight and ground hull coverage equal to the amount of the loan with a breach-of-warranty endorsement. The maximum deductible allowed is $2,500 or 1% of the actual value of the aircraft (whichever is greater). Documentation of insurance coverage must be presented at or before the loan closing. How do I apply? Apply online anytime or by phone! Just log on to www.alaskausa.org or call the Member Service Center. Or, visit any Alaska USA branch location. Highlights
AKUSA 02371-I R 07/07/2009 |
Aircraft loans
FAA Aircraft Bill of Sale from the seller