DVC Ownership Question

[honeymo78]

I know this might be a stupid question, but I'm new to the dvc realm. Once your DVC membership is paid off, can you borrow against it (do you have any equity in the property)? Obviously it wouldn't be exactly the same as a home equity loan but can you get a loan against your dvc membership?

 

[Disney_Villain]

Not possible. In the case of borrowing against the value of your home, the lender can opt to take your home if you default on the loan. This cannot be done with DVC - changing ownership of a contract requires ROFR . . . and thus cannot be guaranteed to a lender as collateral.

DVC contracts can be used in your net worth - as an asset - which could influence loan options like lending rates, etcetera. The more $ value in your assets, the easier you can get good loan terms.