DVC Resale Financing

[jennifer6800]

We are looking at buying a DVC resale. We have looked at TSS financing which seems a little high. Where have other people secured financing?

 

[RobDoc]

Timeshare financing is different than a home mortgage for a variety of reasons. The financing offered thru TTS is pretty competitive with other typical timeshare options.

Many have used a Home Equity Loan to self-finance a DVC purchase and others have used a 2nd mortgage on their home. There are not a lot of other options since many treat a timeshare purchase as an unsecured loan.

The Disney financing option is treated as a mortgage - even though it is still at a higher rate than typical home mortgage rates.

Good luck with your decision!

 

[MemphisTN]

"The Disney financing option is treated as a mortgage - even though it is still at a higher rate than typical home mortgage rates."

WebmasterDoc - does that mean that no matter who you finance a DVC purchase through it is treated as a mortgage or only DVC through Disney with Disney finances are treated as a mortgage? Would one or both be tax deductible on Schedule A?

Thanks

 

[Caskbill]

"The Disney financing option is treated as a mortgage - even though it is still at a higher rate than typical home mortgage rates."

WebmasterDoc - does that mean that no matter who you finance a DVC purchase through it is treated as a mortgage or only DVC through Disney with Disney finances are treated as a mortgage? Would one or both be tax deductible on Schedule A?

Thanks

For the loan interest to be deductible on Schedule A it has to be a loan that is secured by an approved property somehow. That would include DVC financing, a home equity loan, a 2nd mortgage.

It would not include any type of personal loan, or unsecured loan.

Also, it is only deductibel if you meet IRS rules for a 2nd property. I don't know the current rules, but at one time the limit was 3. The things that would count would be a primary mortgage, a secondary mortgage, a home equity loan, an RV loan, a Boat loan, a summer cottage, etc. The condition being that the item which had the loan had to have full cooking, bath, and sleeping accommodations. Thus some campers (such as a pop-up) or most boats would not qualify.

You would need to verify with the IRS or an accountant as to current rules and your particular circumstances.

Also, you may deduct the portion of the maintenance fees that actually go to property taxes. The statement DVC sends at the end of the year will show you the actual taxes paid.