Financing....Hard to get?

[byejou]

Is financing within DVC hard to get?

 

[Sandisw]

From everything that I have read, no. Depending on your credit, they may ask for a bigger down payment and the interest rate could be higher, but in most cases, I think many are approved.

Good luck!

 

[bumbershoot]

I think it's getting a bit harder than it was before. People being asked for more of a deposit (which, if you can swing it, isn't negative b/c it means less interest paid in the course of the loan), and one person being denied (but it was a pretty unique situation that not many of us are dealing with) in recent Dis history.

I don't think it's something to *worry* about, but I also don't think it's as breezy easy peasy as it was before.

 

[NewDCLGuy]

Do you have a pulse? Do you have more than one outstanding bankruptcy?

Give the right answers ("yes" and "no" respectively) and you will likely qualify.

 

[ML_LovesDisney]

They told us as long as you are not in bankruptcy, or foreclosure, you will get approved. Those with mediocre credit get 14.75% interest rate and those with good credit get 10.75% interest rate. We put a lot down so I'm not sure what requirements are since we just wanted to put down a certain amount.

 

[aceys_h0ney]

My credit looks like a tornado went through it after a horrible divorce, it is re building but it is a slow process. Anyway our guide keeps telling us we will be fine, I have been very upfront about how bad my credit is and the two things several people have said to us is if we don't have a bankruptcy or tax liens we should be fine. We have accepted that we are looking at the higher interest rate but don't know yet if we will be asked for a higher deposit, we just sent our papers in last week.

 

[Tyronie]

It can't be too bad, we had a BK two years ago which included us giving back the house; FICO is now 651.

Anyway, I just opened the letter from DVC that starts "I have the pleasure of informing you that your request for financing an ownership interest in a Disney Vacation Club Resort has been approved."

Also, QA and our guide seemed like it's not a huge issue. I mean they didn't even ask for any type of income verification.

Good luck!

 

[3girlsfun]

I am wondering this same thing...is it truly that easy to get the DVC? I mean, we can afford the payments monthly, but, it hasn't always been that way. I just don't want to go through all of this for no reason... not to mention the huge disappointment.

Although, we are considering this even if we have to save for a year or two and pay cash. I would like to go ahead and purchase though so we don't "waste" money on our upcoming vacations.

 

[TheRustyScupper]

Do you have a pulse? Do you have more than one outstanding bankruptcy? Give the right answers ("yes" and "no" respectively) and you will likely qualify.

I didn't know a pulse was a requirement.

 

[ohanalover]

It makes sense to me why it's easy to get financing, they're points! If you stop paying, they just take 'em back and resell them. I'm sure there are costs Disney incurs with this, but at least Disney isn't dealing with an actual piece of property they have to foreclose on.

 

[snorris49]

Well, I have pretty average credit score, but I was worried b/c I had bad credit back when I was in college that it affected my scores now (it's been 10 years)...my score was actually higher than I thought when I got the report from Disney. (good news for me...means I'm doing a great job at rebuilding/maintaining good credit) I was worried that I might have a higher deposit b/c of my student loans (I have a fair amount, but I'm in grad school, so they are deferred right now--currently employed full time). However, we were instantly approved for financing and then when we got our contract yesterday, I called QA about a couple of questions, and when he mentioned the credit application, he said, "Well, you're already approved, that's just for the files." When I asked about being asked for a higher deposit, he put me on hold, then came back and chuckled, "Um, no you are already approved. You have nothing pending or red flags. You're good. So welcome home!" I guess I'm just more of a worry wart.

The most I've heard on the boards is that they ask for a higher deposit and higher interest rate if your credit isn't as good. And most people seem to get financing.

 

[Crystal_27]

Is financing within DVC hard to get?

No, not difficult to get but at 10.75% as the preferred rate and 14.25% as the standard rate, it is quite dear. You also are required to put down at least 10% (although incentives can usually be applied as part of the downpayment). Good luck!

 

[Lost in Neverland]

We had no issue getting approved in April. We had some issues as well with our credit score but when the approval came back in less than 5 minutes we had gotten the 10.75% preferred rate. We were both schocked. The other thing is that the loan is invisable so it does not show up on your credit report and can not be used when calculating your debt/ratio if you need to purchase a car or refi your home. To us it was a win/win situation.

 

[Nikisha421]

It is not that difficult they may ask you for a larger down payment. I paid 30% down and did 10yrs financing....with the larger financing the 10 year loan ended up being shortened to about 7.5 years...

 

[katybug34]

We had no issue getting approved in April. We had some issues as well with our credit score but when the approval came back in less than 5 minutes we had gotten the 10.75% preferred rate. We were both schocked. The other thing is that the loan is invisable so it does not show up on your credit report and can not be used when calculating your debt/ratio if you need to purchase a car or refi your home. To us it was a win/win situation.

What do you mean the loan is invisible?

 

[cat83]

VERY new to researching DVC options...what kind of down payments are typical? I would consider ours average credit... rebuilding after some medical problems a couple of years ago.

 

[katybug34]

10% of purchase price before incentives. Example:

300 points at BLT - $120 per point for a total of $36000
12 points off as incentives - $3600
The 10 % is calculated off of the $36,000 (before incentives) instead of the $32,400 after incentives.

Your contract would be:

$36,000 - original price
$3600 - due as down payment from you
$3600 - incentives
$28,800 - financed

 

[cat83]

Thank you! DVC always seemed like something unattainable.. but from the small amount of beginning research I've done, it seems actually very affordable!

 

[aceys_h0ney]

What do you mean the loan is invisible?

They do not report to the credit bureaus. Not sure about negative reporting but it does not appear on your loan like your mortgage or car financing.

 

[disneynutz]

It makes sense to me why it's easy to get financing, they're points! If you stop paying, they just take 'em back and resell them. I'm sure there are costs Disney incurs with this, but at least Disney isn't dealing with an actual piece of property they have to foreclose on.

Disney has no risk and almost zero cost to process a foreclosure.

Bill