DVC Financing Question

[dsheehan87]

Hi,

I called DVC 2 weeks ago, put down the 20% down payment, signed and returned the paperwork (last week). We are financing for 10 years.

My question is on credit scores. Me and my wife have recently refinanced our home, and also put a vacation to Aruba on a couple of credit cards which we are paying off in over a 3 - 4 month period (so we could get airline miles). Because of the fact that we are carrying balances right now, and theh fact that my credit wasn't the greatest to begin with, I have what you would call a "fair" credit score. It it not bad, but not that great right now either.

My question is this: How tough are the DVC financing people? Considering that our credit scores are not great, but we do make a pretty nice amount of income per month, do you think we would have problems with 20% down? The way I see it, they should have no problem financing us since if we do not pay, they can just take back their property (our membership).

Anyone have any ideas? I am just worried that I will wait until our closing date in a few months to learn that we could not be approved!

Thanks!

 

[goofy4tink]

If you put 20% down you should have no problem. They gave us financing for 10 yrs so they would most likely give it to just about anyone!!! We put the 20% down also and are looking to pay it off within 5 yrs rather than the 10. Good luck!!

 

[Greysword]

You should be ok. My credit score is in the 640's and we got approved with little problem.

besides, it sounds like it is too late to worry abotu it now Just sit back and wait for the decision to rool in. They are pretty quick about it.

of course, you can always call your underwriter and ask.

 

[princess mom]

If there is a problem, then they'll send you a letter in about a week...i have talked with the people in the credit dept. and they are very nice and willing to help in anyway they can to get you approved.

 

[tazleiten12]

I had put 10% down (20% with the $10 pt incentive), and went for 10 years financing. (wanted to pay it off in 3-5 years, but took the lower payment just in case something came up.) They called about 2 weeks after i sent everything in, and said we had 2 options another 30% down, and we could leave the financing at 10 years, or another 10% down, and finance 5 years. Which is what we went for. I would think that is probably the most they would ask for from you, since my husbands credit report is in really bad shape. It has all his fathers negatives on it! (But That's another story). . I would think you should hear something within 2 weeks from when you sent your paperwork in, you could always just give them a call.

 

[Dagny]

Unless you have something really horrible on there, like charge-off's, I wouldn't worry about it. Carrying balances on your credit card(s) definitely won't be a problem

I had a small charge-off on my credit report due to my identity being stolen about 4 years ago (yes, I am still fighting off wierd credit problems from that, gag). I monitor my credit (now) regularly and when I sent in my DVC financing application, just wrote them a quick explanation of the latest charge-off. I never heard anything about it.

I think Disney is pretty flexible in terms of approving you for financing so no worries

 

[lllovell]

They don't have much to lose. If you don't pay (while financing through them), they will just resell your points.

 

[Caskbill]

This is probably a good time to remind everyone that by law now, they can review their credit reports once every 12 months for free. Everyone should do this.

The official link to use is www.AnnualCreditReport.Com.

Eligibility is being phased in across the country over several months, starting in the West and going East, so depending on where you live, you're either eligible now or will be in the next few months.

While you get your credit report free, they are not required to give you your credit score for free. All three bureau's charge a nominal fee for that single number.

When I checked mine there were no errors as far as credit cardsf, banks, mortgages, and such, but found several errors on name, addresses and employment. Such as putting Jr. on my name, which I'm not, having bad addresses (one had a version of our address but had the numbers juxtapositioned (sp?). And one had my employer as a Gasket company. (My username might give you a clue on that one for those of you who don't already know)

 

[marciagms]

How much are you paying per point for Saratoga Springs as your home resort?

 

[JodyTG]

We are buying 160 points at SSR with an initial deposit of $500. DVC is giving us $1600 towards the down payment. We were going to pay a final down payment of $1020 and take the 10 year financing. But with a credit problem we are now sending them a final down payment of $2460 and our purchase will be paid off in 5 years. Our monthly payment including dues will now be @ $276 instead of the @ $210 with the original plan. That's only $65 more per month and we're going to be paid off 5 years sooner.

So...I think this is an even better way to go. PLUS, our guide is wonderful and asked us to fill out new paperwork so that our first payment isn't due until September instead of June. So, the money we're spending out of savings for the down payment will be saved up again by the time we make our first payment.

 

[WolfpackFan]

Think about it - DVC is in a win-win situation as far as their financing even with marginal credit. You buy in and make your payments and they have your money and your membership. If for some reason you can't make your payments, they foreclose and get the points back but still have the money you've paid in. So what have they lost other than the administrative costs of foreclosure and I'm sure they have a staff of lawyers and stuff already on board to take care of all of that. That's why they don't mind lending even in marginal cases IMO.

 

[phorsenuf]

We are buying 160 points at SSR with an initial deposit of $500. DVC is giving us $1600 towards the down payment. We were going to pay a final down payment of $1020 and take the 10 year financing.

I thought the $10 promotion was over? Did you give them your deposit before Feb 28th?
I missed out on that promo and now I'm kicking myself for missing it.

 

[Pinmaniac]

As everyone else said they are pretty easy on approving credit. We bought about 1 month ago. I had just refinanced my mortgage, and have several balances on credit cards due to our daughters medical situation so I asked both our guide and the finance guy who came in to review our paperwork. The guide wasn't much help, but the finance guy said that basically unless you have an undischared bankruptcy or collection issues you wouldn't have any problems. I also ended up speaking with the financing department about a week later because because of some delays with paperwork temporarily lost in the mail, and she said that approvals were extremely easy. It took about two weeks for us to receive the approval letter.

 

[JodyTG]

I thought the $10 promotion was over? Did you give them your deposit before Feb 28th?
I missed out on that promo and now I'm kicking myself for missing it.

Yes, we started this whole thing before Feb 28th, it's just taking a little while. But...our deal keeps getting better the more we think about it.

 

[dsheehan87]

Cool, I just got a letter Friday stating that our financing was approved... We just bought 150 points at SSR and used the $8 a point incentive + 1650 down for 10 years. I will probably pay it off in a year.

My closing is August 2nd. We are making reservations for January 06 and possibly a few days in September of this year. When I first put the CC payment down for the 1650 the person at DVC told me to start making reservations the folllowing Monday when I recieved my welcome kit. (saw a post earlier stating that someone could start making reservations after they closed and the deed was signed - maybe they were buying a resale???)

Thanks for all teh advice!

 

[THESCHULTZFIVE]

Cool, I just got a letter Friday stating that our financing was approved... We just bought 150 points at SSR and used the $8 a point incentive + 1650 down for 10 years. I will probably pay it off in a year.

My closing is August 2nd. We are making reservations for January 06 and possibly a few days in September of this year. When I first put the CC payment down for the 1650 the person at DVC told me to start making reservations the folllowing Monday when I recieved my welcome kit. (saw a post earlier stating that someone could start making reservations after they closed and the deed was signed - maybe they were buying a resale???)

Thanks for all teh advice!

so the whole process took you how long? At this point you've gotten the papers signed them and sent the deposit(500) right? Then you just wait and when it's closing time give them the rest right? Was it your choice to close in August or is that the earliest it could be done? Our papers should be here today and we have a ressie for August(at Pop), but if we go ahead and sign up for DVC then I'll cancel that ressie. Do you get to use your points right away. Everytime I think I understand this process, I get confused again

 

[PamNC]

Hi there. I'm doing all my research now and we're definitely going to buy in...as soon as I figure all of this out. With the help of all of you guys, I'm getting there. I have a financing question. I'm self-employed, so is my husband. However, we have good incomes. Do you think that will be a problem? Both of our credit scores are in the 700's. I think my husband's is high 700's. We do have 2 credit cards with a balance, 2 without no balance.

Do you think I would have a problem with Disney financing it?

I'm also looking into the home equity loan route - interest rate is less. And, I could write it off my taxes.

I'm running ALL the numbers and checking out every single scenario.

PamNC

 

[Tramp68]

so the whole process took you how long? At this point you've gotten the papers signed them and sent the deposit(500) right? Then you just wait and when it's closing time give them the rest right? Was it your choice to close in August or is that the earliest it could be done? Our papers should be here today and we have a ressie for August(at Pop), but if we go ahead and sign up for DVC then I'll cancel that ressie. Do you get to use your points right away. Everytime I think I understand this process, I get confused again

The rest of our deposit was due a month before the closing date.
You can make reservations right after you get your welcome kit but the trip must be after your closing date.

 

[tazleiten12]

You shouldnt have a probem. Im self employed, i believe i needed to send in my last 2 years tax returns including Schedule C.

 

[dsheehan87]

With a 700 credit score you will have no problem whatsoever...

To another question, I called DVC March 19th, and recieved my welcome kit (DVD bag, SSR drawing, Handbooks, and all the paperwork) on the 22nd. On the 19th I gave them my CC # to put down $1650, which was all that was needed for the 20% down payment because of the $8 per point incentive. They charged my card on the 25th when they recieved my completed paperwork. I recieved on letter on March 30th saying that I forgot to sign the annual dues certificate, and they provided a return fedex envelope again... On April 1st I recieved a letter stating that my financing was approved and that the closing would be on or before August 2nd. The closing date is really just when your "unit" is available. My use year is September, so I can book today for any day after September.

i also might add, that unlike they used to do a few years back, you give up 0 points in your first year by taking the incentive.

I am just happy I am a semi-official member now. The closing is just a formality...