Condo Financing On Martha's Vineyard

Jen Hawkins O'Hanlon, REALTOR®


Financing a condo on Martha's Vineyard presents a unique set of challenges and opportunities, particularly in the light of the evolving real estate landscape and financial regulations affecting condominium purchases. The picturesque island, known for its stunning landscapes and upscale properties, has always been a coveted destination for homeowners and investors alike. However, prospective buyers should be well-informed and prepared, especially when considering the purchase of a condo hotel, a niche yet increasingly popular investment choice on the island.
Condo Financing on Martha's Vineyard: Navigating the Changes

In September 2023, significant changes were introduced to condo financing requirements, necessitating more thorough due diligence by lenders on the Homeowners Associations (HOAs). This shift underscores the importance of being well-prepared with a comprehensive set of documents when looking to finance a condo purchase. Essential documents include a completed condo questionnaire, Master Insurance declaration page, the latest budget (preferably with details on reserve accounts and allocations towards reserves), Master Deed, Rules and Regulations, and Meeting Minutes, if applicable. These documents are vital not only for understanding the financial health and governance of the condo association, but also for ensuring a smoother financing process.

The Market at a Glance

The real estate market on Martha's Vineyard has seen fluctuations, with the flurry of purchases during the pandemic significantly reducing the inventory and driving prices up in a very short amount of time. We are now seeing just a handful of homes available for under $1,000,000. This has increased the popularity of condominium and townhouse purchases on the Island. Because of this and the fact that we do not have many condominiums on the Island, we are experiencing a market environment where buyers need to stay informed and ready to make an offer when a unit in their preferred association becomes available. 

Challenges and Considerations for Condo Hotels

Condo hotels, while offering a unique blend of investment and lifestyle, pose additional challenges for financing. It's crucial for investors to understand the particularities of condo hotel investments, including the potential for higher per unit insurance deductibles, possible higher down payment requirements and the implications of non-warrantable condos, which may not qualify for traditional mortgage options but could still be financed through portfolio options offered by some lenders.

On Martha's Vineyard, the Martha's Vineyard Bank stands out as a key player in this sector, being the only bank on the island offering financing for condo hotels. This specialty product underscores the bank's commitment to accommodating the diverse needs of property buyers on Martha's Vineyard and its expertise in handling the intricacies of such investments. In addition to the Edgartown Commons condo hotels that Martha's Vineyard Bank finances, they are also able to finance a purchase in the Martha's Vineyard Campground. These famous cottages are a type of condominium and have very unique features and additional fees that can make them challenging to purchase and finance. 

Community Perspectives and Development Challenges

The development and financing of condos and condo hotels on Martha's Vineyard don't occur in isolation but within the context of broader community and economic considerations. Projects such as the Stone Bank condos have stirred discussions among residents and stakeholders, reflecting the balance that must be struck between development, community character, and economic benefits. While some community members express concerns about the impact of new developments on the island's unique character, others highlight the need for affordable housing and other economic benefits that such projects can bring​​.


Navigating the condo financing landscape on Martha’s Vineyard, particularly for condo hotels, requires thorough preparation, understanding of the current market dynamics, and an awareness of the broader community implications of such investments. Working with knowledgeable lenders like Martha’s Vineyard Bank, which specializes in these unique property types and partnering with an experienced real estate agent, can provide invaluable guidance and support throughout the buying process. As the real estate market on the island continues to evolve, staying informed and prepared will remain key for prospective buyers looking to make a successful investment in this desirable locale.

For more detailed insights directly from The O'Hanlon Group, including details about the different condos and townhouses on Martha's Vineyard, visit their blog at The O'Hanlon Group's Blog on Condos and Townhouses.


As a team, we work in harmony for the benefit of our clients. We handle multiple transactions at once and are able to execute a complex marketing strategy by leveraging team resources. We can be in several physical locations at once to ensure showings are always possible for our buyers and sellers. Our clients benefit from the combined experience of our agents and administrative staff.

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