Financing Timeshares

MoneyTips

A vacation home sounds delightful, doesn't it? If you can't afford one, you may be able to at least afford a part of one – by purchasing a timeshare.

You'll have plenty of company if you do. The American Resort Development Association (ARDA) reports that timeshare sales have risen for eight consecutive years, reaching $9.6 billion in 2017. The average timeshare occupancy rate reached 81%.

Typically, timeshares are not financed like traditional secured home mortgages, due to valuation and reselling difficulties. If you can't afford to pay cash, how do you finance your timeshare?

Developer Loans – Developers have incentive to provide you a loan on the spot – they can give approval and close the deal quickly. However, the interest rates may be high. ARDA reports an average timeshare loan rate of 14% for a ten-year loan, with higher rates for buyers with poor credit. You can check your credit score and read your credit report for free withi...

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