Fidelity Resales Blog

How to Finance a Timeshare

Posted by Mia Reid on May 14, 2019 8:46:11 AM

Say what?! You can finance a timeshare? Most people might not expect to easily get financing on a timeshare, but this is actually a misconception. You might receive advice that you shouldn’t purchase any vacation ownership unless you can pay for it in full, but if we were to take a step back and ask how many other assets we finance to have a better quality of life, you’d need more than two hands!

Most people finance their primary homes, cars, furniture and now even smartphones. For those that vacation regularly and strive to make amazing memories on family trips, timeshares are an ideal fit. With a promise and commitment to vacation every year, in luxury resorts and unique destinations, the benefits are undeniable.

It’s easy to finance a timeshare. We’ll tell you exactly how to go about it. Let’s start with how to buy a timeshare resale.

1. Pick the Perfect Timeshare Resale for Your Family

pick the perfect timeshare resale for your familyAre you interested in spending the same week at the same resort every year? Are you looking for a little more flexibility than that? Beaches or mountains? Family-friendly or weekend getaways? Points or weeks? These are all important questions to consider when you’re on the market for a timeshare resale. There is something for every travel style, so you want to make sure to find the perfect fit. If you don’t love it, you might not find it worth the effort to obtain financing on a lifetime of vacations.

Check out our blogs that cover all the different vacation ownership brands to help you pick the best timeshare resale for your family.

2. Find the Right Timeshare Financing Lenders

Ttimeshare financing lendershis is a huge step. With all the fishy happenings in the secondary market, you want to make sure you find a licensed, reputable lender. Timeshare financing lenders like Vacation Club Loans offers fast loan approval, low-interest rates and no hidden fees. They are also proud members of the American Resort Development Association (ARDA), adhering to a strict code of ethics and guidelines to provide timeshare consumers the utmost care and guidance.

VCL’s annual rates start at 9.9% for Disney Vacation Club resales, 11.9% for Marriott, Hilton, Hyatt and Westin, and go up to 13.9% for all other brands. Depending on your credit, you can have the timeshare resale of your dreams! All you pay up-front is a 20% down payment and VCL will take care of the rest.

3. What is the Right of First Refusal?

When purchasing a timeshare resale, there is a process every buyer has to go through called the Right of First Refusal, commonly referred to as the ROFR. Developers have the right to purchase any points or week back from their owners that choose to sell their timeshare. There’s really no way of knowing if a developer will choose to exercise this right and it sometimes can take a few weeks for them to waive the ROFR.

4. Timeshare Title Transfer Companies

After the ROFR process, the next step is transferring the title and ensuring all the correct information is there. A licensed timeshare title transfer company will work hand-in-hand with your resale agent and lender to ensure a smooth closing process. The title company will send you and the seller documents to sign, which will include the Loan Note. Once these are signed and ready, the title company will then notify your lender that the contract is ready to close.

5. The Lender Sends Money

Congratulations! Once the contracts are closed and titles are transferred, the title company is then responsible for the distribution of funds. Since the sale is paid through your loan, your title company will forward documents to the resort to notify them about the completed sale. Your monthly payments to your lender will begin at close until your loan is paid off.

How Easy is it to Get Financing on a Timeshare?

How easy is it to get financing on a timeshareAs long as you have good credit, you might find it pretty easy to get financing on a timeshare! Having good credit means you’ve paid bills on time, without missing any payments and have a healthy history of credit.

Vacation Club Loans has a simple and easy process to get started. You can get estimated payments on their website based on the loan amount, brand you wish to buy and your credit score. If you are happy with the results you get back, consider applying online. Vacation Club Loans offers fast loan approval so you can get started taking your dream vacations.

Planning Your Next Trip?

Read up on more popular vacation destinations, vacation ownership clubs and all the inside information on all things timeshare. 

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Topics: Timeshare Resale, Finance