id AA23132 for ; Mon, 4 Mar 96 18:06:51 -0500 for uupsi9!hpwarhw.an.hp.com!cozy_builders id AA23567; Tue, 5 Mar 96 17:18:26 -0500 From: "Kevin Russert Walsh" Date: Mon, 4 Mar 1996 17:14:50 +0000 Subject: NAFCO - AVEMCO For those who are interested, I have contacted these two companies about their services and here is what I found: NAFCO: 1-800-999-4515 They will loan money for a Homebuilt project, and I had them run numbers for a $30k loan. (Not to offend anyone on the list, but I have decided to build a Berkut) They indicated that the loan would normally be made on a 60 month (5year) period, with a rate of prime plus 2.5% (currently 10.75%). They stated that an N number would have to be assigned to the kit as soon as it was received, and a lein would be placed on it at that time. Also, the hull must be insured through AVEMCO. The loan could also be set for a 5 year rate, with a balloon at the end so that further loans could be taken for engine, avionics, etc. up to a period of ten years. Further, a kit could simply be paid for on a ten year basis, but the rate would be higher (didn't state how high.) AVEMCO: 1-800-638-8440 John Shimer ext 4207 Indicated that they would supply hull insurance (no liability) for a kit of $30k for $292 per year, with $150 paid in the first month. Also indicated that they could easily change the policy to standard aircraft policy at completion. Both of these companies are dealt with by the EAA directly. While building a Cozy would not necessarily involve this risk, there is a very real reason to take a loan to buy a kit fully at the time of purchase. With the long time involved in building a kit, and the possibility of the manufacturer no longer being around when you need parts, it makes sense to get the whole thing at once. While none of us would like to think that our friends the kit makers would ever go away, the truth is that, through no fault of their own, they do. Having the whole kit in the beginning will save some hardship if, and when this should happen. Thought I would pass it along. Kevin R. Walsh Mechanical Engineer Intelligent Automation Systems 149 Sidney Street Cambridge, MA 02139 TEL 617.354.3830 FAX 617.547.9727