Aircraft Financing for International Buyers (Non-U.S. Citizens)

The U.S. has the most active market for pre-owned aircraft, making it an attractive place for international buyers. However, financing an aircraft as a non-U.S. citizen presents unique hurdles, primarily related to FAA registration and lender risk.

The FAA Registration Challenge

The FAA requires any aircraft registered in the U.S. (an "N-registered" aircraft) to be owned by a U.S. citizen or a U.S.-based corporation. To overcome this, international buyers must place the aircraft in a trust. A U.S. trustee holds the legal title to the aircraft for the benefit of the international buyer, who maintains full operational control.

Lender Requirements for International Buyers

Lenders view international buyers as higher risk due to the complexities of international law and repossession. To mitigate this risk, they typically require:

• A U.S.-Based Trust: This is non-negotiable for FAA registration and lender security.
• A Larger Down Payment: International buyers should expect to provide a significantly larger down payment, often in the 30-40% range.
• U.S. Assets: The borrower must have substantial assets located within the United States that can serve as additional collateral.
• Thorough Vetting: Expect a deep dive into your global financial standing and background.