Financing DVC

[Mama Steph]

Dh and I are trying to prepare to buy our first dvc contract. We are considering starting with a 50-70 pint contract and adding on as money is available. However, I know that if I buy a larger amount at once I can get less per point and have more bargaining power, lower closing costs, as well as not having to stress about numerous contracts and be tied to only finding small contracts in my user year.
So looking for info on how to finance a resale purchase. Who have you used, rates, etc... I saw an ad for timeshare lenders and was wondering if anyone had used them. We are not able to get a home equity loan right now so unfortunately, that is not an option.

I understand that many people have strong feelings about this so I just want to clarify that I am not asking if we should, just your experiences and how to's.
Thanks

 

[Sandisw]

When we were deciding to purchase, we looked in to financing for resale. We found that our credit union offered an unsecured loan for a few percentage points less than what the finance company you mentioned. While it was around 9 % vs. the 11%, which is not alot, we figured every little bit helped!

We ended up buying direct and able to work things out with our Disney Visa to delay when final payments would need to be done so didn't follow through.

Good luck!

 

[tjkraz]

Your choices are typically between high interest rates and high risk.

Banks won't specifically do timeshare loans. Any financing they offer amounts to a signature loan which is not secured by the property. You are personally responsible for the loan. Unless you qualify for a special rate like Sandisw's situation, rates tend to be in the teens to twenties. Interest is not tax-deductible.

For years the common recommendation was a home equity loan. But with today's economy & housing market, you would be wise to think long and hard about putting your home at risk for a timeshare purchase. Many homeowners don't even have the equity to go this route anymore.

Interest on home equity loans typically is tax deductible (consult tax professional) and rates these days are commonly in the neighborhood of 5%.

If you have good credit, you may score something like a low interest offer from one of your credit card companies. Just have to keep your eyes open for those things. And read the fine print for fees and limitations. One late payment is often enough to completely lose incentive rates on these offers. You could go from 0% to 18% instantly if a check is one day late.

Additionally, most cards will apply payments to the lowest rate first. So if you continue to use the card, you could be paying 15+% on new purchases while you whittle away at the incentive balance. Credit card interest is not tax deductible.

 

[littlestar]

I saw from your other thread that you love OKW. I'd probably talk to Disney about buying at OKW (then you'd definitely get the longer end date) and financing through Disney. A while back they were offering 100 points as an initial purchase (don't know if they still are) but it might be worth checking into. I see you have a large family - OKW has some of the lowest points and the biggest rooms. So with you needing a 2 bedroom, your points will go far at OKW.

Good luck. Let us know how it turns out for you.

 

[jngwright]

I sent you a PM

 

[KerTggr]

I also sent you a PM.

 

[Deb & Bill]

I see you have five kids. That means you'll always have to get a two bedroom villa. Having enough points for the two bedroom villa may be tough with a small contract.

 

[ToddyLu]

Just for a frame of reference. DH and I bought 210 points at AKV direct from Disney in June 2009. We paid 93$ per point and financed for 10 years at the preferred rate of 10.75%. We could not find a lender last year easily and the local one we did see was 8%. Our purchase was instant with 10% down on a CC. Our monthly mortgage with Disney is $237 and monthly dues are $80. If we add on with Disney there are no closing costs. There is no penalty for paying it off early and we can pay principle on the loan using the member website.

Because we purchased direct our Guide was very helpful in helping us book our first reservation. He did a three way call to MS and just stayed in the background until I made the reservation then he and I finsihed our call.

So if you want to go at a specific time, specific type villa--buying direct--the Guide's help could seal the deal. In other words don't purchase if he/she can't ge tyou the reservation--make it part of the deal.

 

[Sandisw]

Your choices are typically between high interest rates and high risk.

Banks won't specifically do timeshare loans. Any financing they offer amounts to a signature loan which is not secured by the property. You are personally responsible for the loan. Unless you qualify for a special rate like Sandisw's situation, rates tend to be in the teens to twenties. Interest is not tax-deductible.

For years the common recommendation was a home equity loan. But with today's economy & housing market, you would be wise to think long and hard about putting your home at risk for a timeshare purchase. Many homeowners don't even have the equity to go this route anymore.

Interest on home equity loans typically is tax deductible (consult tax professional) and rates these days are commonly in the neighborhood of 5%.

If you have good credit, you may score something like a low interest offer from one of your credit card companies. Just have to keep your eyes open for those things. And read the fine print for fees and limitations. One late payment is often enough to completely lose incentive rates on these offers. You could go from 0% to 18% instantly if a check is one day late.

Additionally, most cards will apply payments to the lowest rate first. So if you continue to use the card, you could be paying 15+% on new purchases while you whittle away at the incentive balance. Credit card interest is not tax deductible.

With the new CC laws that have gone in to effect, I read that CC companies now have to apply your payments to the highest interest rate charges first. This is a big change and could help those who take advantage of those intro. offers.

 

[Jason@dvcstore]

Dh and I are trying to prepare to buy our first dvc contract. We are considering starting with a 50-70 pint contract and adding on as money is available. However, I know that if I buy a larger amount at once I can get less per point and have more bargaining power, lower closing costs, as well as not having to stress about numerous contracts and be tied to only finding small contracts in my user year.
So looking for info on how to finance a resale purchase. Who have you used, rates, etc... I saw an ad for timeshare lenders and was wondering if anyone had used them. We are not able to get a home equity loan right now so unfortunately, that is not an option.

I understand that many people have strong feelings about this so I just want to clarify that I am not asking if we should, just your experiences and how to's.
Thanks

Timeshare Lending.Net does offer financing for the Disney properties.

http://timesharelending.net/

Jason

 

[Mama Steph]

Thanks everyone. I am going to cal our guide at DVC and see the best we can get for SSR or OKW. I think we have decided that we would rather finance and get all ( for now) of our points now rather than build up with smaller contracts. We will be looking at about 300 points. I have a feeling we will do better financing through timeshare lending and buying resale. We spent 10 nights in a 2br at OKW this summer and loved it. We got that reservation at 46 days out. I don't think I would dislike staying at any of the resorts so really any home resort would be fine with us. I also know we are most likely to be able to get OKW or SSR at late notice.

 

[Sandisw]

Thanks everyone. I am going to cal our guide at DVC and see the best we can get for SSR or OKW. I think we have decided that we would rather finance and get all ( for now) of our points now rather than build up with smaller contracts. We will be looking at about 300 points. I have a feeling we will do better financing through timeshare lending and buying resale. We spent 10 nights in a 2br at OKW this summer and loved it. We got that reservation at 46 days out. I don't think I would dislike staying at any of the resorts so really any home resort would be fine with us. I also know we are most likely to be able to get OKW or SSR at late notice.

Good luck! If you go through Disney and own a Disney Visa, you can put some of your purchase (up to $10,000) on the card and they give you 6 months, 0% interest. Just something to think about as that could save you some money.

We did that and ended up being able to purchase without having to incur any financing charges as our situation was such that having the 6 months was just what we needed.

 

[Deb & Bill]

... I also know we are most likely to be able to get OKW or SSR at late notice.

Not always. You were probably lucky last summer because a lot of people weren't taking vacations with the economy. You really need to plan further out. Especially if you want around a holiday time like you posted in an earlier post.

If you do get 300 points, see if you can break the contact up into multiples. That way, if you need to, you can always sell one in the future. You can't break up a contract to sell. But Disney can break it up into smaller ones when you buy.

 

[Mama Steph]

Thanks Deb. When I said we could get OKW or SSR, I just meant that if we were able to get in somewhere, it would probably be there rather than AKV, BCV or BLT. We do plan further out and actually had our trip planned about 10 months out but it was staying in 3 value rooms. I was able to get an amazing deal renting pts and decided to go that route about 3 days before my 45 day mark to cancel our package.
Now, if you could all just say a prayer for us that our credit has recovered enough from so previous troubles to be able to finance at a decent rate. I will be calling TimeshareLending tomorrow.

 

[Coach81]

We financed for our 150 pt contract.. and so happy to say that we paid that puppy off last year.. a full three years ahead of schedule!!!

 

[FindingFigment]

(deleted because I misread)

 

[Marine Mom]

We bought a contract through TSS and financed through timesharelending.net. They were very easy to deal with and I would highly recommend. Good luck.

 

[ldrprn]

We also used Timesharelending.net for our last purchase, and It couldn't have been easier.

 

[frank808]

Finance with Disney for new members is 11.75% or 15.75% right now.
Members get a price of 10.75% or 14.75% I believe. You do have to put down at least 10% of the total contract price before any discounts. Financing through Disney is very easy. They make it so easy for a reason.

 

[LostNWonderLamb]

Good luck! If you go through Disney and own a Disney Visa, you can put some of your purchase (up to $10,000) on the card and they give you 6 months, 0% interest. Just something to think about as that could save you some money.

We did that and ended up being able to purchase without having to incur any financing charges as our situation was such that having the 6 months was just what we needed.

I have seen people mentioning Disney rewards visa as a payment, Is it normal for the Disney visa to approve such high amounts? or does it get approved because it is going towards a Disney purchase(DVC)? I know i don't have the best credit , so I never applied for this card, and i know there is no way i would get 10k approved. Just curious