DVC Financing and Approval

[NUHuskies#1]

Hi there-

Finally convinced my hubby to buy! Yippee!! But now I have a couple of questions.

1. How tough is the approval process through DVC?

I would rather go through DVC than through our credit union for a personal loan but will if I have to because I know it would be approved through the CU. The payments through DVC would be easier on us and spread out, giving us the opportunity to pay it off earlier. With the credit union it would be four years and almost twice the monthly payment. Both places have similar finance charges.

I know it's kind of personal but your experiences with DVC financing would help tremendously!

thanks in advance

 

[Rence]

From what I was told during the application process and from what I have read on here, is that DVC is not to tough to get financing through.

It is a secured loan, don't pay, they take the points back and can sell them to somebody else.

My partner had a bankruptcy several years back (but less than 7) and we were told that if there was a problem that we may be asked to put more down to secure financing.

We had planned on putting 20% down anyway so we had no problem. I have read a few postings on here where DVC came back and asked for a larger downpayment. Usually if you put down less than 20% they may ask for 20%.

I seem to recall one post where someone was asked to go to 30%.

 

[CRSNDSNY]

I was a bit apprehensive since hubby is in school full time, we're a one income family, mortgage, school loans, car loans, etc....i thought we'd have trouble but it was no trouble at all.

GOOD LUCK!

 

[wbc99]

We also had no problems. The whole process was quick and painless. And, as it has been mentioned on the boards before, Disney does not report the loan on your credit report.

 

[pumpkinboy]

I am a credit guy by profession (tho not personal or real estate lending, but I have the training), and as Rence points out, this is pretty low risk for DVD. If they have any trouble with your scores, they will simply ask for more $$ down.

From a personal perspective, be sure to take the maximum time offered, to minimize your payments; you can and should pre-pay this as often as you can, but the longer official term will give you the most financial flexibility. Plus the interest rate is the same whatever term you choose (unless it's the one-year financing that takes 50% down).

I'm sure you'll do fine, and we'll be able to say, "Welcome Home" really soon.

Good luck!

 

[pplasky]

We were worried since DH is self-emplyed, but after answering a few questions, everything was fine.

 

[sleepydog25]

As the others have pointed out, everything I've read and heard is that DVC is quite easy to deal with. However, in contradiction to some on here (but in agreement with many others in other threads), DVC did do a standard credit check on us. I keep tight track of those things since ID theft is such a big issue these days, and I was flagged about the activity within a couple of days of submitting paperwork. Just shows DVC can be thorough.

 

[tinkerbell of winter]

You will likely have no problem at all, they just adjust the down payment depending on your credit. I honestly don't think that anyone gets denied, they may just require a larger down payment. I think i paid 30%, but I can't remember right now. You will have no problem.

 

[Coach Rick]

Back in 92 I had some financial problems, nothing earth shattering, but the kind that happens when your place of employment goes out of business in a time when the economy stinks, and you can't find work for a year. Anyhow, at that time Disney said they would sell to us,but wanted 50% down. Of couse I didn't have 50% to put down, or I did, but being uncertain about employment I didn't want to take that chance. Anyhow we waited, and of couse evernthing was fine in 02, and on the recent add on, they didn't even pull credit, so I guess they are pretty easy. I know in 92 I wouldn't have loaned me money either.

 

[wbc99]

However, in contradiction to some on here (but in agreement with many others in other threads), DVC did do a standard credit check on us. I keep tight track of those things since ID theft is such a big issue these days, and I was flagged about the activity within a couple of days of submitting paperwork. Just shows DVC can be thorough. [/B]

What I meant to say is that they do check your credit, but they do not report to the credit agencies. Disney will show up on your report as running a credit check. However, nothing on the subsequent reports will list the loan. This was confirmed by my guide when we purchased.

 

[robmary]

You should have no problem. Our situation was ok , but not the greatest and we had no problem. We bought last year. As others have said DVC does not report to credit bureaus. Just last week we got copies of credit report from all 3 credit reporting agencies. Only one showed the DVC as an inquiry. That was Equifax. TransUnion and Experian did not even have an inquiry listed.

By the way to all, you should on occasion check all your credit reports for accuracy. Check all 3, not just 1. We found on our Equifax credit report that a credit card we have with one company was listed 2 times and open with balances on both. The one company recently bought the other. Could you imagine having 2 credit cards with high balances, but there was really only one. We are having a time getting it corrected. Check that accounts read as closed if they are. Not just $0 balances.

 

[MichaelsMickey]

We just bought in September--they took our information and said we were approved for the financing in aobut 10 minutes. They seem to be very easy.

 

[TEK224]

When you purchase through Disney and get approved for financing, can you then start using your points or do you have to wait until a certain amount is paid.

Trying to figure out if I can afford it and get financing, but wasn't sure how long I'd have to wait to start using the points.

Terri

 

[TEK224]

What is the maximum number of years you can get financing for?

How long is the RTU for Saratoga Springs?

Is Disney still selling any resales? (I really like BWV area). Would probably choose either BWV or SS just to be close to either ESPNClub and Jellyrolls or DtD area.

Does anyone have any details on the WDW vacation their giving if you purchase at Saratoga Springs?

Thanks!

Terri

 

[DiznEeyore]

Originally posted by TEK224
When you purchase through Disney and get approved for financing, can you then start using your points or do you have to wait until a certain amount is paid.

Trying to figure out if I can afford it and get financing, but wasn't sure how long I'd have to wait to start using the points.

Terri

I can answer two of your questions.

The points are yours to use immediately, just as with a home or car loan. And the maximum years for financing is 10.

HTH!

 

[ellenmiele]

TEK-
We are about to buy at SSR and I have asked just about every question there is. Yes, Disney does have some (not many) non-ssr contracts at $89/pt which is more than you could probably get one for on a resale although if you go direct through Disney you can finance, you don't need to wait out the ROFR, and you can start using your points right away. The vacation incentive that Disney is offering on SSR contracts is actually points. Since if you buy SSR now you are actually getting phase 2 which isn't even open yet. Here's an example - if you buy 150 pts at SSR (phase 2) you can't use them until April 05 and you can't borrow them either so you can choose to pay less for those 150 points ($85 instead of $95 per pt) or you can take the vacation which means Disney "gives" you 150 points that you can use for a year from when you purchase your contract and you don't pay dues on those -- but the restrictions are that you can't bank or borrow those points, you can't use them at SSR, and you can't use them at concierge or world passport resorts (nor can you use them for the adventurer collection, I think) and you can't use them toward a Disney cruise. So basically you could stay at any of the other DVC resorts (just not SSR) or Disney hotels. And I think they "give" you however many points your contract is for. So if you by 200 SSR phase 2 you will get your first allocation of those 200 in April o5 but you will get 200 now to use, without dues, at any of the other Dvc or Disney resorts and you have to use the within a year from now or lose them.

I think I've finally got this down --

 

[ellenmiele]

And I think 10 years is max for financing through Disney.

 

[Scotch]

What's the current finance charge via DVC?

 

[ellenmiele]

Depends on the amount put down and length of payout but here's a few examples:

20% down, balance over 10 years is 9.75%
10% down, balance over 3 years is 13.00%
10% down, balance over 10 years is 14.50%

And those numbers are based on direct debit payments. It looks to me from the charts I got from DVC that if you pay by monthly statements/check by mail that the interest rates are about 1% higher.

 

[Scotch]

Thanks. Ouch.