The last couple of days, we’ve been looking fractionals and timeshares. Both fall under the category of "riskier" real estate investments. However, while financing a fractional purchase may be a lot like financing a home (but there are some differences that can make fractional financing more difficult), financing a timeshare purchase is more like getting an unsecured loan.

Interest rates for financing are often higher when financing a timeshare purchase, and, as savingadvice.com points out, can be harder to get rid of:

Unlike regular housing, timeshare units are next to impossible to sell
for a profit, let alone recover your initial investment. This is
because if all the time slots in your building have not yet been sold
(which is common), you’ll be competing against the developer to sell
your unit, virtually guaranteeing that you’ll have to sell at a loss in
order to get rid of it.

But financing a timeshare can make sense in some cases, savingadvice.com continues:

Timeshare units can be great for those who have unique situations where
they travel to the same place every year no matter what and that
situation will never change.

Just be aware that you will need very good credit to get something even close to 10% on your timeshare purchase loan, and if you don’t have good credit, the rate could be as high as 21%. Sounds kind of like a big credit card.