Financing options for DVC?

[NHTikiBeckie]

DH and I are thinking of buying DVC, but cannot afford to buy all at once...anyone knoe where I can find info for financing options?

 

[BamaDad]

The best way to buy, if at all possible is through your bank using a CD. They only chage 2% above what interest they are paying you. And even while you have the loan you draw your interest so its like borrowing money at 2%.
even if you have to get some help getting up enough money to get a CD large enough, it is well worth it. It will save you a lot of money in the long run. You even get to set up your own payback schedule, monthly, quarterly, annually it does not matter. Then all you do is when the time is up you just have to resign the loan against the same CD until you get it paid back. Then whomever helped you out just give their money back to them.

 

[RobDoc]

DVC offers financing for up to 10 years. The rate is based on the length of the morgtage - lowest rate is for a 1 year loan with 50% down - otherwise there is a minimum downpayment of 10%.

This will be a mortgage secured by the property and, depending on your tax situation, may be able to be claimed as a second home on your taxes (check with your own advisor to verify for your situation). The interest rate has generally been 10 - 11% for the 10 year mortgage using the auto-deduct feature from a checking account. Annual fees can also be paid monthly using auto-deduct.

Some have also used a home-equity loan to finance DVC purchase at a lower rate.

 

[jlewisinsyr]

Disney offers Financing as others have said. I can speak about the 5+ year loans from recent experience.

Currently the rate is 10.75% for FICO scores 740+ and 14.25% for FICOs below that. Disney has been cautious about talking about rates recently because of the increasing requirement for higher FICO scores to obtain the preferred rate.

Minimum down is 10%, but usually the discounted point cost can be used as part of the downpayment (ie. AKV $8.00/point credit can be used as part of the 10% down with an additional $500 being paid by the purchaser). But for those with less than perfect credit, more than 10% can be requested.