Hi all, looking to start construction on a airpark home & hanger and already getting some push-back from my local bank about “special loan requirements” due to the property’s use. Has anyone gone through the process and have any suggestions or lenders they could recommend? Thanks and Merry Christmas.

Greenleaf, Idaho? If so, contactRed Dory at Red Dory Real Estate. She should be able to direct you in the right direction.

I think this is her number. 208-631-1252

Not sure, but she might not enjoy her phone number being posted on the web for all to see...most folks are somewhat sensitive about that.

Hammer wrote:Not sure, but she might not enjoy her phone number being posted on the web for all to see...most folks are somewhat sensitive about that.

I got the number from Google. So, it’s already out there on the World Wide Web.

I am going through this now. We tried for over a year. We always dreamed of a large hanger with a living space in the rear built on an airpark. It’s virtually impossible to obtain conventional construction financing with anything less than 50% or more down. Their is no secondary investor market that will buy the loan. Very few financial institutions that make mortgage and or residential construction loans keep those loans. They sell the loan on the secondary market. Too few potential buyers for such a unique property if the loan is foreclosed. We went with a commercial construction loan and will have an occupancy permit issued by the county to allow us to live in it as our primary residence. My wife has a CFI business part-time that we used to qualify for the commercial loan. In many locations you will have difficulty getting a building permit for a hangar home apartment like ours where you only have a wall separating the hangar from living quarters. This also will likely trigger commercial IBC’s (international building codes) which many jurisdictions adopt or base their own building codes on for the building permit and will significantly increase construction cost. For this reason alone add 25-40% to whatever you think it will cost. If you are doing a hangar apt like ours think 3 hr fire walls and sprinklers.

It’s extremely difficult to obtain financing but it can be done. Below is the contact info for our bank. You’ll of course need a good detailed set of plans to submit. In order to do that you need to work closely with a good, knowledgeable builder and meet with your local building dept to get an idea of whether or not they will first approve such a plan and to find out what they will demand you include in the plans to get an approval.

Best of luck! You’ll need it. If you want to make it much easier, build a house and 10Ft away build a hangar. Hope this helps.

AgriFinancial
Bre Beals
877-548-2622

27 years in our Air Park home. When we built and still the case, speaking to recent neighbor/builders: when you talk to your lenders refer to your hangar as a shop or large garage. Include your insurance company and confirm no issues if you put airplanes in your shop/garage. Most lenders don't know how to handle a hangar/home as you're finding out. One "big dog" hangar/home down the street recently sold for approx. $2.5 mill and new owner uses his hangar only for his car collection. Also, make sure there are avigation easements on your airport to stave off future noise complaints- I assume your airport isn't a public airport. Private airports (for that matter all GA airports) are always in jeopardy due to the whims of politicians and new neighbors moving in that disagree with what is considered offensive. Talk with the "Living with your Plane" people as they may have good info. Google it.
Good luck, nothing easy about this; but, definitely worth it. Walking downstairs to make a 20 minute sunset flight or throw your bags in and be airborne in 30 minutes vs an hour drive to DIA and then 2+ hours at the airport. Our T210 can beat airlines to anywhere (basically) west of Mississippi.
Jack