Anyone ever turned down by Disney

[graygables]

for financing? Can anyone tell me how it works?

 

[Mtnman44]

I'm an outside observer, having never used this but I'd guess it's a fairly straightforward real estate loan. Disney probably has a partner bank that works with them. You could also use your own bank if you wanted to. Someone correct me if I'm wrong, but I just don't see any way they could require you to use them if you want to finance the purchase. I'm sure they make it easier and offer incentives to finance through them as they get a commision from the lender. Loan approval will be based on your credit history and score, as well as your income and your current debt to income ratio.

I assume that until paid off, the bank will be a lienholder on the contract/lease meaning that if you default they can sieze your contract and liquidate it in order to pay off the loan.

 

[Boston5602]

I financed with Disney and the loan itself is through Disney , not some other bank. They require a down payment , determined by your credit , so if you default on the loan they have the cash and the points , they always have control over the actual room so no loss there.


Yes you could save up your own money , or if you had enough credit on a credit card put it on that , or take a second mortgage on your primary home and use that to pay for DVC .

I'm gonna ask Santa for some more points this year . HEY I've been good , REAL GOOD !!!!!

 

[Cruelladeville]

I have never heard of anyone being turned down by Disney. Usually, they just require a larger down payment. Even people who have previously declared bankrupsy are approved, although I am sure they would have to put alot down. I don't think they run a credit check, but I'm not sure. I do know that as long as you aren't late on payments, they don't report to any credit agencies, and it doesn't show up on your credit as a loan. They aren't overly concerned with your credit ratio, either. You probably don't need to worry at all about being approved by Disney. They are probably easier to get credit from than your own bank!

 

[brandip22]

They do a credit check- and I think there are not any folks who have been turned down, but they have been asaked to put more $$ down. And the loan is from Disney Vacation Development, not another bank. Good luck!

 

[Boston5602]

also one of the reasons they do do a credit check is to determine the %interest they will charge you , the better the credit the better the rate ....you get either 10.99% or 13.99% .

 

[Darkside]

We just bought at SSR. I think Disney finances internally. They were going to charge us some dumb interest rate of 13.5%. I ran the numbers and over 10 years we would have paid over $26,000, the loan was for for $12,500. We decided that was too much interest and wrote a check and paid it off. We really love our DVC, but Disney's interest is too much. I doubt they turn anyone down at these interest rates.

 

[MIDisFan]

also one of the reasons they do do a credit check is to determine the %interest they will charge you , the better the credit the better the rate ....you get either 10.99% or 13.99% .

I would imagine these numbers will fluctuate, but the current "Prefered" interest rate through DVC is 10.75% if you use direct debit. We just purchased about 3 weeks ago and that was the rate with a 10% pre-incentive down payment. As far as I can tell from the paperwork, the loan is direct through Disney.