Aircraft Down Payment: How Much to Put Down and Where the Money Comes From
This page is for buyers deciding how much cash to put into an airplane at closing. It covers the minimums, what 15%, 20% or 30% down does to the payment, where the money can come from, and why the answer depends on your cash reserves.
Minimum down payments by aircraft type
These are the published minimums from AOPA Aviation Finance. Your lender may ask for more based on credit, experience or the specific aircraft.
| Aircraft | Typical minimum down | Term limits | Notes |
|---|---|---|---|
| Single-engine piston, built 1960 or later | 15% | 5–20 years; 20 years only on loans of $75,000+ | Most common case |
| Single-engine piston, built before 1960 | 20% | May be shorter | No age restriction at AOPA's lenders, but expect more equity |
| Multi-engine piston | 15%–30%, depending on age | 10–15 years maximum | Lenders generally want 1970 or newer. For example, a $300,000 twin with 25% down over 15 years is $2,118/mo. |
| Older aircraft generally | 25%–30% | Often shorter | AOPA notes older aircraft may be financed "up to 70% or 75%" (source) |
| Experimental/kit and MOSAIC light-sport | Varies by lender | Varies | FLYING Finance lists starting rates of 7.78% (experimental/kit) and 7.71% (light-sport) as of Sept 21, 2026 (source). Ask about down payment. |
Lenders typically calculate the down payment against the lower of the purchase price or the appraised value. If you agree to pay more than the airplane appraises for, the difference comes out of your pocket on top of the minimum.
15% vs 20% vs 30% down: the payment math
Here is a $200,000 post-1960 single financed at 7.75% for 20 years. The rate sits within the roughly 7%–10% range aviation lenders quoted as of September 2026, and it is held constant so the only variable is the down payment.
| Down payment | Cash down | Loan | Monthly payment | Total interest (20 yrs) | Interest saved vs 15% |
|---|---|---|---|---|---|
| 15% | $30,000 | $170,000 | $1,396 | $164,947 | — |
| 20% | $40,000 | $160,000 | $1,314 | $155,244 | $9,703 |
| 30% | $60,000 | $140,000 | $1,149 | $135,839 | $29,108 |
How to read it:
- Going from 15% to 30% down means $30,000 more cash at closing, and it cuts the payment by $246 a month. That's about $122 of cash for every $1 of monthly payment you remove.
- The interest you avoid on the extra cash is, in effect, a guaranteed 7.75% return. That's the benchmark to compare against what else the money could do, which is covered in finance or pay cash.
- If a lender priced the 30%-down loan a hypothetical 0.25% lower, at 7.50%, the payment would be $1,128 and total interest $130,679. Rate tiers by loan-to-value aren't universal, so ask for quotes at two down-payment levels rather than assuming a discount.
To model other prices, rates and terms, use the aircraft loan calculator.
Where the down payment money comes from
| Source | Upside | Cost or risk | How lenders tend to view it |
|---|---|---|---|
| Savings and cash | Simple; no new debt | Reduces your reserves | The cleanest source. Expect to show statements and explain large recent deposits. |
| Brokerage assets | Available quickly | Selling appreciated assets triggers capital gains tax | Fine if the funds are documented from the sale to the closing |
| Equity in a current aircraft | Rolls one airplane into the next | Timing: you may have two airplanes or none for a while | Fine. Escrow pays off the old lien and applies the proceeds. |
| Partner contributions | Splits the cash requirement | Shared control; everyone may have to sign | Lenders usually require each owner to sign or guarantee |
| HELOC or home-equity loan | Often available when cash isn't | Your home is collateral; the rate is usually variable; it adds to your debt-to-income ratio | Acceptable to many lenders if disclosed, since the payment counts as debt |
| Gift from family | No repayment | Gift-tax paperwork for large gifts; ask a CPA | Policies vary. A gift letter is usually required. |
| Retirement accounts | Large balances | Early withdrawals can trigger income tax and penalties | A last resort. Get tax advice first. |
| Personal loan or credit card | Fast | Expensive, and raises debt-to-income | Often a red flag. Borrowed down payments must be disclosed. |
Equity in your current aircraft
Say your current airplane would sell for $90,000 (assumption) and you owe $52,000 on it. Your equity is $38,000, which is 19% of a $200,000 purchase. That's enough for the 15% minimum with $8,000 left over for tax or reserves. You can sell first and fly rentals, write the purchase contingent on your sale, or coordinate both closings through escrow so the old lien is paid off and the net proceeds flow straight into the new purchase. Refinancing the old airplane is covered in refinancing your aircraft loan.
Partner equity
3 partners contributing $20,000 each puts $60,000 down, or 30% of a $200,000 aircraft. That's one of the fastest ways to reach 30% without draining any one person's reserves. Expect the lender to want every owner on the application, or each member's personal guarantee if an LLC owns the aircraft. See co-signers and guarantors and financing a partnership aircraft.
Home equity (HELOC)
A HELOC can fund the down payment when cash can't, but it moves risk onto your house and usually carries a variable rate. Two cautions. First, the aircraft lender will count the HELOC payment in your debt-to-income ratio, so disclose it. Second, don't assume the interest is deductible: since 2018, federal law has generally limited the home-equity interest deduction to money used to buy, build or substantially improve the home. Confirm with a CPA for your situation.
See the payment at two down-payment levels
Share the aircraft and price. A Jaken Aviation financing specialist can request quotes at, for example, 15% and 25% down from lenders in its network, so you can compare real numbers.
The real tradeoff: down payment vs cash reserves
The down payment isn't the only cash that leaves at closing. Here is an illustrative buyer with $80,000 in liquid savings, buying the $200,000 single in a state with a 6% sales tax, such as Pennsylvania. Other upfront cash: $12,000 of tax, a $2,500 pre-buy, $3,000 first-year insurance and $1,000 of escrow and miscellaneous costs. The last three are assumptions, so get your own quotes. That totals $18,500.
| Down payment | Cash down | Other upfront cash | Left in savings | Monthly payment |
|---|---|---|---|---|
| 15% | $30,000 | $18,500 | $31,500 | $1,396 |
| 20% | $40,000 | $18,500 | $21,500 | $1,314 |
| 30% | $60,000 | $18,500 | $1,500 | $1,149 |
At 30% down, this buyer saves $246 a month compared with 15%, but is left with $1,500. One cylinder or avionics repair would push them onto a credit card. At 15% down, the payment is higher but $31,500 stays available.
A practical order of operations:
- Add up every non-down-payment cash need: tax, pre-buy, escrow and title, first insurance premium, and any known squawks.
- Set your aircraft reserve, for example enough for an annual with findings plus one significant unscheduled repair, separate from your household emergency fund.
- Put down whatever is left, but not less than the lender's minimum.
- If you end up with more cash than you need after the first year, prepay principal. That earns the same guaranteed interest saving as a bigger down payment, provided the note has no prepayment penalty.
Cash you've put down is hard to get back without selling or refinancing. Cash held in reserve can always go toward the loan later. When in doubt, keep the flexibility.
When to put down more than the minimum
- Your reserves are covered even after the larger down payment.
- The aircraft is older or less common, and the lender's minimum is already 20%–30%.
- You may sell within a few years. More equity protects you if prices soften. Used piston-single asking prices were roughly flat year over year as of mid-2026 (Sandhills Global).
- Your credit or debt-to-income is borderline, and a lower loan amount makes the file approvable.
Stick close to the minimum when reserves are thin, the engine is approaching overhaul, or your cash has a better use, such as a business that earns more than the loan rate.
How this guide differs from related guides
This page covers how much to put down and where it comes from. For whether to borrow at all, see finance or pay cash for an airplane. For the full set of qualification standards, see aircraft loan requirements. For adding a co-borrower or guarantor to qualify, see co-signers and guarantors. For how the pre-approval letter reflects your down payment, see aircraft loan pre-approval. For the mistakes that drain reserves, see first-time aircraft buyer mistakes.
Frequently asked questions
What is the minimum down payment for an aircraft loan?
AOPA Aviation Finance cites a minimum of 15% down for single-engine piston aircraft built after 1960, 20% for aircraft built before 1960, and 15% to 30% for multi-engine aircraft depending on age. Older aircraft may be financed at only 70%–75% of value. Lenders can ask for more when credit is thin or the aircraft is unusual.
Do I need 20% down to buy an airplane?
Not for most post-1960 single-engine pistons, where 15% is the common minimum. Twenty percent is the usual minimum for pre-1960 aircraft. Some buyers choose 20% or more to lower the payment and total interest, but a larger down payment only makes sense if you still keep adequate cash reserves after closing.
Can I use a HELOC for an airplane down payment?
Many buyers do, but disclose it. A HELOC puts your home behind the money, usually carries a variable rate, and its payment counts in your debt-to-income ratio. Since 2018, federal law has generally limited the home-equity interest deduction to money used to buy, build or substantially improve the home, so HELOC interest spent on an airplane usually isn’t deductible. Confirm with a CPA.
Can my current airplane be my down payment?
Yes. Your equity, meaning the sale price minus any loan payoff, can fund the down payment on the next aircraft. For example, a plane worth $90,000 with a $52,000 payoff yields $38,000, or 19% of a $200,000 purchase. Escrow can pay off the old lien and apply the proceeds when the sale and purchase are coordinated.
Does a bigger down payment get a lower interest rate on an aircraft loan?
Sometimes. Lower loan-to-value reduces the lender’s risk, and some lenders price it better, but there is no universal rate schedule. The reliable benefit is arithmetic: a smaller loan means a smaller payment and less interest. Ask for quotes at two down-payment levels and compare the payment, the total interest and the cash you keep.
How much cash should I keep after the down payment?
There is no universal rule. A practical approach is to keep enough for one annual inspection with findings plus one significant unscheduled repair, on top of your household emergency fund, after paying sales or use tax, the pre-buy, closing costs and your first insurance premium. If a bigger down payment would drain that, put less down.
Can I finance 100% of an airplane?
Not with a standard piston aircraft loan. Aviation lenders typically require at least 15% down, and more on older aircraft and twins. Buyers who put little cash in usually borrow the down payment elsewhere, for example with a HELOC, which increases total debt and must be disclosed to the aircraft lender.