Financing....Hard to get?

[NancyIL]

Financing your timeshare? Great for Disney...BAD idea for the consumer!

 

[LouisianaDisneyFan]

Regarding mention in an earlier post about one Disboard member recently being denied the financing... her unique situation that was involved the "Making Homes Affordable" program. From what I've read regarding her situation, as well as from reading reports about other financial nightmares of those who accepted enrollment in the program, having your mortgage refinanced via this new federal program really messes up your ability to finance ANYTHING else. Your home mortgage is put in a "holding" status until the federal review and refinancing is processed, which to the credit bureaus looks like default. Truly, this has got to be one of the WORST home financing programs ever created.

 

[bumbershoot]

Truly, this has got to be one of the WORST home financing programs ever created.

I agree. The program made that person's mortgage appear as though it was in default, while the company waited for something...just an awful situation, especially b/c the person's mortgage was not truly in default. Very weird situation.

 

[Sandisw]

Financing your timeshare? Great for Disney...BAD idea for the consumer!

Not necessarily, especially if someone is going to continue to go to Disney and pay cash rates for stays.

Yes, it certainly adds to the cost of DVC and that needs to be used in the decision making process.

But for someone, like us, who was going to still go on vacation and spend $2500 per year for our room at the CR, financing was considered. As far as we were concerned, we were paying that anyway. If we could get in to DVC, finance, and keep the cost of MF's and payments within that figure, we were spending no more for DVC. Granted, it would take longer to see a financial benefit to DVC, but nonetheless, it wasn't going to take any more from my yearly vacation budget.

 

[jtink60]

we recently talked to a dvc guide and had our credit checked. We were told we were status pending. We need to send proof of income. do we still have a chance of getting approved? Thanks

 

[tikilyn]

They did the same to us. They wanted the 30% down because I have one bad item over 3000.00 (I've been taking care of it but it's still up there money wise). The lady that I talked to told me that if I wanted my name on the contracts that we had to pay the high down payment or else they can just finance my dh with the 10% down. We decided to let it be in just dh's name. The third set of papers came yesterday for dh. Hopefully one day we'll be members.

 

[cush1]

We didn't have any problems with ours. We put 10% down and chose 5 yr payment plan.

And, yes, as long as you make the payments on time, Disney doesn't report the debt to the credit bureaus. It won't show up on credit reports.

 

[HappyGrumpy]

I keep walking away from the whole financing thing b/c my husband and I are paying off our debt but we are enrolled in a program with our credit union where we closed all our cc and have agreed to apply for no more credit until our debt to income is paid down. We pay cash for everything so a dp is a no brainer. I guess my question is... Is if this is "invisible" are we still applying for "credit"? Our credit scores are actually pretty intact but if we apply it may flag the credit bureau and it's not worth applying on several levels if that's the case.

Just came across this thread at a very late hour and I will probably want to kick myself in about 7 hours!

Thanks in advance!

 

[rsinj]

I keep walking away from the whole financing thing b/c my husband and I are paying off our debt but we are enrolled in a program with our credit union where we closed all our cc and have agreed to apply for no more credit until our debt to income is paid down. We pay cash for everything so a dp is a no brainer. I guess my question is... Is if this is "invisible" are we still applying for "credit"? Our credit scores are actually pretty intact but if we apply it may flag the credit bureau and it's not worth applying on several levels if that's the case.

Just came across this thread at a very late hour and I will probably want to kick myself in about 7 hours!

Thanks in advance!

You should keep walking and kick yourself along the way. By the sounds of it, you have (had) some credit usage issues and are on a 12-step sort of plan to set you straight again.

You are similar to the alcoholic attending AA that has got his hands on a tube of glue.

Just because something doesn't show up on your credit report doesn't mean that it's not credit.

The objective of your "plan" is that you aren't supposed to take on anything where you don't outright purchase whatever it is you want to buy if you can't pay for it with cash today.

 

[helloirishkitty]

What do you mean the loan is invisible?

It does not appear on your credit report, at all. They even do a "soft hit" on your credit when they check you for financing.

 

[adwilli]

We had no problem getting qualified in June. Unless you have something big financial issues, you should be fine.

 

[abs730]

I am pending since they checked in May, backed off since then. My problem is school loans defaulted years ago when I graduated and couldn't get a job. Closed all my credit cards and had no other loans/credit to my name. I now have a car loan and school loans showing up but very limited credit history that is slowly improving. And the real kicker, I make great money but it all contract work that sh! is mostly paid under the table so nothing to show for it!! Trying to save up for a big downpayment.

 

[mamof3]

What is a "soft hit"?
And what about people who are trying to buy from Canada? Is it hard to get credit?

 

[abs730]

A soft hit to my understanding is they are able to check your credit without it showing up on your credit report. It did not show up on my credit report. I had some fraud with my SS back in May so I monitor mine monthly and it never showed up that it was checked by Disney.

 

[P.I. Squirrel]

DVC requires 10% as a minimum down payment for financing, regardless of which of the two interest rates you end up with. They can increase the down payment required if you have issues on your credit that could result in future liens or garnishments (thus lowering your income/debt cushion).

As others have said, they asked us for 30% down. At that point, we declined, and cancelled the contract. We may buy in later, but that's a decision for another day. (By the way, DVC told us the additional down payment would not be reflected in lower monthly payments, but rather take money off the end of the loan term.)

I would like to point out a 'trick' available to those who do have their down payment raised. I call it a trick, but it's perfectly ok to do.

We were looking for 160 points for BLT. At 120 a point, we were looking at a 30% down payment of $5760. However, newcomer's to DVC can buy in for as little as 100 points. We could have changed our contract to buy 100 at Saratoga Springs for 94 a point, which would have lowered our 30% down to $2820.

Now for the 'trick'. After 4 months or so of on-time payments, DVC automatically considers you 'preferred'. So, we could have added-on points at BLT for the 10.75% rate, regardless of credit. Our DVC guide is still calling us to this day, wanting us to accept that offer.

When you combine the interest savings from paying the original loan off early, and the lower interest for the add on, you stand to save a ton of money.

 

[abs730]

DVC requires 10% as a minimum down payment for financing, regardless of which of the two interest rates you end up with. They can increase the down payment required if you have issues on your credit that could result in future liens or garnishments (thus lowering your income/debt cushion).

As others have said, they asked us for 30% down. At that point, we declined, and cancelled the contract. We may buy in later, but that's a decision for another day. (By the way, DVC told us the additional down payment would not be reflected in lower monthly payments, but rather take money off the end of the loan term.)

I would like to point out a 'trick' available to those who do have their down payment raised. I call it a trick, but it's perfectly ok to do.

We were looking for 160 points for BLT. At 120 a point, we were looking at a 30% down payment of $5760. However, newcomer's to DVC can buy in for as little as 100 points. We could have changed our contract to buy 100 at Saratoga Springs for 94 a point, which would have lowered our 30% down to $2820.

Now for the 'trick'. After 4 months or so of on-time payments, DVC automatically considers you 'preferred'. So, we could have added-on points at BLT for the 10.75% rate, regardless of credit. Our DVC guide is still calling us to this day, wanting us to accept that offer.

When you combine the interest savings from paying the original loan off early, and the lower interest for the add on, you stand to save a ton of money.

That trick is why I am looking to buy only 50 pts. at Beach Club that is the only place my husband will stay. 50 pts is all we need right now since my husband is a teacher and he will only go at value time and he will only miss two days of school so we are okay with just a four day quick trip and then I am hoping to add on when my youngest is at least walking so I can take the trips by myself with the three of them.