An aircraft mortgage is a financial agreement where an aircraft is used as collateral for a loan. Much like a mortgage on a home, this type of contract allows a lender to place a legal interest in the aircraft until the borrower repays the full amount of the loan. This agreement is recorded with the Federal Aviation Administration (FAA), ensuring that the lender’s claim is officially recognized and visible in public records.
It helps safeguard the lender’s investment while allowing the borrower to acquire or refinance an aircraft without having to pay the total amount upfront.
Who Might Need an Aircraft Mortgage?
Aircraft ownership often requires substantial capital, and many buyers rely on financing to make their purchase possible. An aircraft mortgage is commonly used by:
- Private buyers purchasing personal planes or jets.
- Commercial operators expanding their fleets.
- Flight schools seeking additional training aircraft.
- Leasing companies financing new acquisitions.
Lenders—such as banks, financial institutions, or private investors—often require a mortgage to secure their interest in the aircraft. By recording the mortgage through the FAA, both the borrower and lender gain protection and transparency in their financial relationship.
This mortgage also benefits borrowers because it creates a formalized structure for repayment, giving them access to financing that might otherwise be unavailable without secured collateral.
Who Can (and Can’t) Apply for an Aircraft Mortgage
Not every individual or organization automatically qualifies to apply for or file an aircraft mortgage. Generally, those eligible include:
- U.S. citizens or entities that meet FAA registration requirements.
- Owners listed on the aircraft registration certificate.
- Individuals or corporations who legally possess the authority to encumber the aircraft.
Those who cannot apply include individuals or companies that do not hold valid ownership of the aircraft, entities that do not meet U.S. registration requirements, or anyone attempting to place a lien on an aircraft without proper documentation.
Before submitting a mortgage filing, it’s critical to ensure your aircraft registration is current and accurate. If ownership or registration records are outdated, the FAA may reject the filing. Keeping your registration current and managing timely FAA registration renewal helps ensure that your mortgage application proceeds without unnecessary delays.
What Documentation Is Needed
When applying for an aircraft mortgage, accuracy and completeness are key. You’ll generally need:
- The aircraft registration number and serial number.
- The full legal names and addresses of both borrower and lender.
- The terms of the loan or financing arrangement.
- Signatures from authorized parties.
- A copy of the aircraft’s existing registration certificate.
Depending on your financial arrangement, you may also need supporting documentation such as a bill of sale or proof of ownership transfer. The FAA requires that the mortgage be properly signed and dated before it can be recorded. You can find more information about requirements and changes to ownership under 14 CFR § 47.47.
How We Simplify the Application Process
At the National Aviation Center, we understand how complex FAA documentation can feel. That’s why we’ve designed an online portal that allows you to submit your aircraft mortgage form quickly, securely, and without the hassle of mailing paperwork.
Our service provides:
- Digital submission directly through our encrypted website.
- Easy upload options for supporting documentation.
- Built-in accuracy checks to help prevent missing information.
- Fast processing and confirmation of submission.
We handle the secure transmission of your application to ensure it reaches the FAA correctly. While we cannot provide legal or financial advice regarding whether a mortgage is right for you, we can ensure that your documentation is properly formatted and ready for submission.
What Happens Once You’ve Paid Off Your Aircraft Mortgage
After you’ve successfully paid off the loan, you’ll need to officially release the mortgage record from your aircraft title. This process, known as satisfying or releasing the mortgage, confirms that the lender’s claim has been removed and that you hold full, unencumbered ownership of the aircraft.
We also provide convenient access to the release form through our portal. Whether you need to record a new aircraft mortgage or file its release after repayment, both can be done through our secure online system. Our goal is to make every stage of the documentation process—loan setup, repayment, and ownership updates—smooth and straightforward.
Common Errors in Aircraft Mortgage Filings
Filing an aircraft mortgage with the FAA requires close attention to detail. Some common errors that can delay or invalidate an application include:
- Listing incorrect aircraft serial or registration numbers.
- Using an outdated or expired registration certificate.
- Forgetting to include lender signatures.
- Submitting incomplete or unsigned financial agreements.
- Missing or inconsistent ownership information.
To avoid these issues, our online submission system walks you through every field to ensure that all required information is included. We also make sure your documentation is ready for FAA review before submission.
Transparency in Aircraft Ownership
When an aircraft mortgage is recorded, it becomes part of the FAA’s public registry. This transparency benefits both buyers and lenders, allowing anyone to see existing financial interests before completing a purchase. It helps protect future buyers from unknowingly acquiring an aircraft with outstanding debt or liens.
Once the mortgage is released, the record is updated to show clear title, ensuring the aircraft is free from prior claims. Keeping these records accurate and current is a vital part of responsible ownership and compliance with FAA standards.
Secure and Reliable Assistance for Your Aircraft Mortgage Filing
At the National Aviation Center, we’re committed to simplifying every aspect of aircraft documentation. Whether you’re applying for a mortgage, renewing your registration, or submitting ownership transfers, our secure online portal makes it easy to handle all required forms in one place.
If you’re ready to file your Aircraft Mortgage, visit our dedicated page to begin your submission today.
Our service ensures that your filing is submitted quickly, securely, and in compliance with FAA requirements. Explore our portal to see how we can help you complete this and many other essential aviation forms, so you can stay focused on what matters most—operating and maintaining your aircraft with confidence.