Buying a new home... should I list DVC as asset?

[BoardwalkSuzy]

When applying for a new mortgage, should I just leave off the DVC ownership as an "asset"? Do mortgage lenders view vacation ownership as more of a "liability" with maintenance dues, etc, or can it be considered an asset perhaps? Not sure what others do. I have a $35K investment in DVC, not financed.

I'm thinking of just leaving the DVC asset off our mortgage application form, since unless I were to sell (no plans for that), it really doesn't have any net benefit to present except the maintenance obligation that is a ding I would think. Anyone reported DVC on their mortgage app?

 

[cush1]

When applying for a new mortgage, should I just leave off the DVC ownership as an "asset"?

I was thinking about this the other day. My bank helps me keep up with my assets and liabilities and updates my net worth.

I wonder how much the membership is really worth. Hopefully someone will answer our question.

 

[SusieBea]

 

[sweetdana]

I am a loan officer.

Assets verses Liabilities. ...

You pay an annual fee for it, so officially the MF /12 should be included in your debt to income ratio. Officially leaving anything off an application, (you are obligated to pay) is fraud, and any fraud and your loan is fully callable at any point in the loan. .. AND most LOs are lazy and only care about closing a loan and getting commission, and if you told them they would leave it off anyway, as they would have to get proof from you to put it in.

It is actually the liability part that would matter, as assets for 1004 (loan apps) are only liquid, and unless you are selling it for a down payment, it is not actually and asset for a loan. Cars, jewelry, timeshare are all not liquid, so they are not assets for loan applications. Also leaving assets off a 1004, is not fraud, only leaving off liabilities.

****although you would like to think while doing this, they look at your real net worth, they do not. they just work to approve the loan.

If you have any other questions, please PM I will be happy to help.

 

[BoardwalkSuzy]

Very interesting to know that don't need to report all assets, but need to report the DVC maintenance fee broken down to a monthly cost on the 1004. Yes, positive cash flow that is regular and predictable is what lenders like - cash flow is king. Thanks for the info on what to do with DVC on the form.