Credit requirements for DVC?

[wish*i*was*in*the*vi]

Is it pretty stringent? Pretty lax? Finance rates? Anyone have any info at all? Thanks

 

[vicki_c]

If you finance, Preferred financing is 10.75% (with autodraft from your account). Non-preferred is about 14-15%, I think.

It used to seem like they would give a loan to anyone that was breathing, but I think they have gotten a little more stringent in the past few years due to the economy.

 

[wish*i*was*in*the*vi]

wow, those are pretty high rates. We have all the info with the monthly payments, but i've never been able to get any interest rates out of them. Thanks!

 

[ToddyLu]

We have excellent credit and qualified for the preferred rate at 10.75%. I say excellent credit becuase when we were looking to finance outside of Disney last year.....no one was really financing and the rate DH found was 8% or more in our area. We didn't think 10.75% too bad when compared with that...plus we got instant points with extended banking for 2008 points included in the contract, the UY we wanted and the Guide made our reservations right then for us so we got what we wanted.

Have you checked the resale market?? It is very strong.

 

[vicki_c]

wow, those are pretty high rates. We have all the info with the monthly payments, but i've never been able to get any interest rates out of them. Thanks!

When we did the tour a few years ago, part of what they give you is a pre-printed sheet showing the monthly interest rate(s) at the top of some columns and I think across the rows were different amount of points - something like that - to show what your payments would be. I'm surprised they didn't give that to you.

 

[wish*i*was*in*the*vi]

Toddy, would love to do resale, but looking around I havent found any place that does timeshare financing...and quite honestly I"m not looking to refinance or take out a home equity line of credit just to buy a DVC membership...so if I'm missing some other way of making a resale transaction happen (other than good old cash, which right now isnt an option), please clue me it. Thanks!

 

[wish*i*was*in*the*vi]

Vicki, we havent been to a DVC tour, just spoken with a DVC sales rep over the phone, maybe when we take the tour in January they'll give us that info.

 

[Jazcat]

Hope this isn't out of line to post, but the sponsors of this board include this in their emails with updated inventory:


TimeShareLending.net offers financing for Marriott, Hilton, Hyatt, Disney, Starwood and Season only. Funding available in all US states.

http://www.timesharelending.net/

Interest rate as low as 12.9% - Subject to change.

Terms up to 120 months.
No prepayment penalty for loans over 12 months.

No points.
Minimum loan amount $5,000.
Maximum loan amount $250,000.


As of April 19, 2010, our credit report fees are 50.00. If a client applies for financing, is approved and changes to cash during the escrow process, there is a 75.00 cancellation fee.

As of April 19, 2010, our interest rates and down payments are:

10% down - 13.90%

20% down - 12.90%


Soft Qualifier:
Minimal personal information required. No credit report is run. If you want
to know if you qualify for a loan and for what amount prior to submitting a
full credit application, fill out a short form and you will have an answer
within 24 hours. NO OBLIGATION.

Credit Application:
When you agree this loan is for you, complete the credit application and
submit it. NO OBLIGATION.

Manual Application Form:
Credit application, Hard copy, available for printing

 

[wish*i*was*in*the*vi]

Thank you VERY much jazzcat....now that I have that info, I"ll be looking into them to see if we can buy DVC resale and save some $!

 

[fupresti]

If I recall correctly, when we bought last October in order to get preferred financing through Disney you have to have a minimum 710 credit score. If you are applying for a joint loan, only one of the buyers has to have the 710 or higher to qualify.

 

[JWG]

Thank you VERY much jazzcat....now that I have that info, I"ll be looking into them to see if we can buy DVC resale and save some $!

Just remember, only mortgage style loans are tax deductible and not all timeshare loans qualify. Something to look for in addition to rates.

 

[ELKHUNTER]

Toddy, would love to do resale, but looking around I havent found any place that does timeshare financing...and quite honestly I"m not looking to refinance or take out a home equity line of credit just to buy a DVC membership...so if I'm missing some other way of making a resale transaction happen (other than good old cash, which right now isnt an option), please clue me it. Thanks!

Instead of a standard home equity loan you could take out a HELOC which has a variable rate, but some are as low as 3.25% or signature loans as low as 6.9% which we are currently doing for a 130 point add on. There is usually no closing cost on these types of loans. Way better than standard financing.

 

[TheRustyScupper]

Is it pretty stringent? Pretty lax?
. . . pretty loose
. . . not too many fail the credit approval process, when Disney-financed
. . . they get the point s back if you can't pay
. . . they are win-win-win

. . . I have seen people approved
. . . with less than 600-points FICO
. . . with very recent bankruptcies

 

[Steven25]

I'm new here and just retuned from 8 days at Walt Disney world. It was my 3rd trip. I'm interested in dvc. Can anyone tell me why I should buy direct and not thru a resale place please

 

[cbnsoul]

The adage goes "buy where you want to stay". If you LOVE the Poly and only ever see yourself wanting a studio, buy through Disney. Possibly buy through Disney of you want the Grand Floridian as resale prices aren't much below Disney direct prices although it is technically "sold out" now so it may take a few weeks to get point to sell to you. Incidentally, you can buy any "Sold Out" resort from Disney but they will be a lot more than resale and ponts may not be available right away. They good news is that, once they come through, you will get current use year points. Many resale contracts are sold "stripped" meaning there are no current and, often, next use year points so you may not have any points to use for awhile. There are some restrictions on resale points (can't use for Disney cruises or Adventures by Disney) but most agree those are a bad (ie non-economical) use of pints anyway.

 

[cbnsoul]

This is another company that finances timeshare purchases:

http://monerafinancial.com/

We worked with Timesharelending.net and they were ok, but not always terribly friendly. Don't know that Monera is any better but it's nice to have options!

 

[lgpav1]

We used Monera. There rates were close to most others. We contacted timesharelending.net - they were very rude on the phone and never responded to emails. So we opted for Monera. I think the person we spoke to was Sandra. She was very nice on the phone and responded to email questions very quickly. Would use them again!

 

[lgpav1]

And I should add, timesharelending.net rudeness was before the application process started or they had run the credit check.

 

[freediverdude]

I was just approved a couple weeks ago at Disney, so I can put in my two cents. The standard financing if you don't have the above 710 credit score is 17.5% now. I told him my score was mid-600's because of a bankruptcy 5 years ago, and he said around 650 is the borderline for getting approved. Turned out mine was a little higher than that so I was approved.

Yes, that is a high interest rate, but even so, after I run the numbers including the interest costs, I'm still saving a lot of money averaged over the 50 year contract, even way more than a Florida resident or passholder discount. Or I can look at it as paying around rack rate for the first 10 years (if I don't pay it off sooner), and then after that a VERY steep discount, whichever way you want to look at it.

The guide and I both agreed I probably should have done this about 10-15 years ago.

 

[Missyrose]

Just an FYI, this is an OLD thread. So the info in the first half is pretty out of date.