Financing? What to do now??

[UGAFan0829]

The DH and I have been wanting to buy into DVC for a while now. I've been researching all the different options trying to figure out which route would be the best for us. I signed up on the e-mail list for the Timeshare Store and had even e-mailed with one of the agents there. In getting ready to try and get some numbers to make sure that this is something that wanted to do and could do, I called the Timeshare Store to ask about the financing options that they offer...The gentleman that I spoke to told me that they no longer have any financing to offer. The company that they worked with is no longer doing timeshare loans. I was really looking forward to working with them and hopefully even buying through them, but now that they don't offer any financing I don't know what to do. Obviously there are other options out there, like a Home Equity line, etc., but that's not something that the DH and I are willing to do. Does anyone have any recommedations? I would love to buy directly through Disney, but we would save a good bit by purchasing a re-sale, but now it doesn't look like we may have any choice...

 

[Metsoskil]

I don't have any good ideas for you, unfortunately, but buying directly through Disney does give you the financing option. It will cost much more, though if you are looking for anything other than BLT.

 

[dnoyes]

We ended up going with Disney because all the resale contracts we found were without points at the time of purchase. You may have found something we didn't but as I did the numbers it just worked out better for us. I didn't want to start out "in the hole" from day one. I don't know what's going on today but at the time (last May) I ended up getting an extra 400 points that I wouldn't have going with resale. I think we came out even or better.

 

[arthur06]

I did not want to finance 160 points through Disney, I qualified for standard. So I bought a 30 point BWV resale and paid cash. It was under $3,000 with closing. I then added on at BLT, and when I added on I automatically got preferred financing, still over 10%, but better then 14.25%.

I bought 125 BLT and got a 4 night cruise for the same that I would have got 100 at AKL with standard financing, and I got a cruise! I don't plan on paying for 10 years, maybe 3... I bought what I can comfortably afford right now. If I need to add on it is so much easier then trying to sell.

 

[ToddyLu]

Hi! My DH and I love Disney , too and we finally decided to make or purchase last month. We bought 210 points at AKV direct through Disney becasue like you we could not find financing in our community or on line without going through a lot of headache. Plus I really wasn't crazy about putting a lot of our info on the internet and that possibly affecting our credit score. You do not see this with Disney, it does not show up on your credit report...this may be for all timeshares but being new we just didn't want to take the chance. We got a preferred loan for 10 years at 10.75% so our note is about $230 monthly and of course we can pay extra toward the principle with no prepayment penalty.

The breakdown for us monthly is $230 for the mortgage and another $85 for the maintenance fees... we paid about $330 in closing coast and $590 for this years MF since we were given 2008 points (6 months left in this year). We are using our 2008 incentive points and borrowing a few for a trip with 2 studios with SV in October. We were planning to stay at Pop Century....wow what a difference.

Sometimes it jsut helps to see someone line it out for you. I couldn't really find out the answers to my financing question until I talked to a guide....so I hope my info gives you an idea. Our first payment is 8/15, about 2 months after signing our paperwork.

I can't tell you how excited we are to be DVC members...best of luck to you and your decision.

 

[ToddyLu]

Our 2 studio SV at AKV would have been about $7000 for the 9 nights planned. So in our book we are getting a pretty good deal this year....I mean I know I paid $590 for the MF....but never could we have afforded these rooms without being DVC members.

 

[UGAFan0829]

Hi! My DH and I love Disney , too and we finally decided to make or purchase last month. We bought 210 points at AKV direct through Disney becasue like you we could not find financing in our community or on line without going through a lot of headache. Plus I really wasn't crazy about putting a lot of our info on the internet and that possibly affecting our credit score. You do not see this with Disney, it does not show up on your credit report...this may be for all timeshares but being new we just didn't want to take the chance. We got a preferred loan for 10 years at 10.75% so our note is about $230 monthly and of course we can pay extra toward the principle with no prepayment penalty.

The breakdown for us monthly is $230 for the mortgage and another $85 for the maintenance fees... we paid about $330 in closing coast and $590 for this years MF since we were given 2008 points (6 months left in this year). We are using our 2008 incentive points and borrowing a few for a trip with 2 studios with SV in October. We were planning to stay at Pop Century....wow what a difference.

Sometimes it jsut helps to see someone line it out for you. I couldn't really find out the answers to my financing question until I talked to a guide....so I hope my info gives you an idea. Our first payment is 8/15, about 2 months after signing our paperwork.

I can't tell you how excited we are to be DVC members...best of luck to you and your decision.

Wow, your post is really helpful to me. Especially since we are looking at buying the very same number at points. The only difference is that we prefer Saratoga Springs over the other two resorts that are currently being offered. You have given me a ton of information that is really very helpful. Thank you for taking the time to post all this.



Actually, we are thinking about Saratoga Springs...that's just where we prefer. Don't get me wrong, AKV is beautiful, but we just prefer SSR. I'm actually speaking to a guide now. She and I talked over the phone last night, and then I e-mailed her some additional questions. I wish I had seen this first though, because I would have loved to have gotten someone credit for a referral, especially since everyone here has been so very helpful.


Thank you to everyone who has posted replies. I really appreciate it. I have found these boards to be very helpful. It seems as though everytime I've had a question, someone has always answered!

 

[toniosmom]

Wow, your post is really helpful to me. Especially since we are looking at buying the very same number at points. The only difference is that we prefer Saratoga Springs over the other two resorts that are currently being offered. You have given me a ton of information that is really very helpful. Thank you for taking the time to post all this.



Actually, we are thinking about Saratoga Springs...that's just where we prefer. Don't get me wrong, AKV is beautiful, but we just prefer SSR. I'm actually speaking to a guide now. She and I talked over the phone last night, and then I e-mailed her some additional questions. I wish I had seen this first though, because I would have loved to have gotten someone credit for a referral, especially since everyone here has been so very helpful.

Make sure your guide is giving you all incentives that are available. Since you are a first-time buyer, I thought you needed a member name to get additional dollars off per point. Double-check with her. Also, ask if you can get 2008 points as well.

We stayed at SSR in March and loved it. It was a great vacation. I'm sure you will feel the same.

Let us know when you are officially a DVC member so that we can all welcome you HOME!!!

 

[Sandisw]

Wow, your post is really helpful to me. Especially since we are looking at buying the very same number at points. The only difference is that we prefer Saratoga Springs over the other two resorts that are currently being offered. You have given me a ton of information that is really very helpful. Thank you for taking the time to post all this.



Actually, we are thinking about Saratoga Springs...that's just where we prefer. Don't get me wrong, AKV is beautiful, but we just prefer SSR. I'm actually speaking to a guide now. She and I talked over the phone last night, and then I e-mailed her some additional questions. I wish I had seen this first though, because I would have loved to have gotten someone credit for a referral, especially since everyone here has been so very helpful.


Thank you to everyone who has posted replies. I really appreciate it. I have found these boards to be very helpful. It seems as though everytime I've had a question, someone has always answered!

Be sure that you ask about whether or not having a member referral will get you better deals. It may be too late for the member to get their incentive (since you already contacted Disney), but it might not be too late for you to still qualify.

If you find out you can use a members name, go to the referral thread on this board to find one!

And, if you have a Disney Visa, you will be able to get some of your purchase price at 0% interest, for 6 months. Right now, they advertise up to $2500, but many of us have gotten more than that to qualify. I just added on a 2nd time and this newest purchase is also qualifying.

Good luck!

 

[silmarg]

If u really want to buy at SSR, the resales there seem to be a steal. Much much lower than buying direct from Disney. Same cant be said for AKV where I can see the argument that developer points and no closing costs w Disney make the resale benefit much smaller (unless you get a really good resale price).

Assuming you have equity in your home, why not get a HELOC (Home Eq Line of Credit)?

My HELOC rate is under 3%.

I am a lurking DVC wannabe. Hoping to joing the club soon. And I plan on tapping the HELOC to finance it (if needed).

 

[living20057]

We just purchased at BLT and they gave us about 1800 towards the downpayment, and the points are back dated till last Feb 09

 

[JimmyJam838]

Assuming you have equity in your home, why not get a HELOC (Home Eq Line of Credit)?

Because if for some reason you can't make the payment, you risk losing your home!

 

[marynvince]

The DH and I have been wanting to buy into DVC for a while now. I've been researching all the different options trying to figure out which route would be the best for us. I signed up on the e-mail list for the Timeshare Store and had even e-mailed with one of the agents there. In getting ready to try and get some numbers to make sure that this is something that wanted to do and could do, I called the Timeshare Store to ask about the financing options that they offer...The gentleman that I spoke to told me that they no longer have any financing to offer. The company that they worked with is no longer doing timeshare loans. I was really looking forward to working with them and hopefully even buying through them, but now that they don't offer any financing I don't know what to do. Obviously there are other options out there, like a Home Equity line, etc., but that's not something that the DH and I are willing to do. Does anyone have any recommedations? I would love to buy directly through Disney, but we would save a good bit by purchasing a re-sale, but now it doesn't look like we may have any choice...

To OP, if you are going to finance, it makes sense to get the best rate that you can. A Home Equity loan will ALWAYS beat the offered financing rate through Disney or the timeshare store. Over the course of the loan you will save thousands in interest and the interest is tax deductible.

 

[princessbride6205]

I'm with the OP - don't want to do a home equity loan and looking into other options.
Has anyone else had a problem lately not being able to finance with Timeshare Store? I was really hoping to use them too and not have to secure financing on my own. Maybe we'll just keep saving and not finance.

 

[Crystal_27]

Actually, we are thinking about Saratoga Springs...that's just where we prefer. Don't get me wrong, AKV is beautiful, but we just prefer SSR. I'm actually speaking to a guide now. She and I talked over the phone last night, and then I e-mailed her some additional questions. I wish I had seen this first though, because I would have loved to have gotten someone credit for a referral, especially since everyone here has been so very helpful.


Thank you to everyone who has posted replies. I really appreciate it. I have found these boards to be very helpful. It seems as though everytime I've had a question, someone has always answered!

Greetings from a fellow Georgian!! I really really want to caution you to make sure that you are getting the best deal you can. Even though The Timeshare Store is a sponsor of this site, there are other resellers out there who do offer financing (GMAC, I believe, is one). Since you want SSR, I think that you would be doing yourself a *huge* disservice to buy through Disney, when you can find SSR for about half of what it's currently selling for by buying through resale. I would completely support you buying through Disney if you wanted BLT or AKV, but, again, buying SSR through Disney you are talking the difference in many thousands of dollars for the exact same points.

Honestly, if you are really thinking about buying through Disney, have you checked into BLT (on the monorail, lower maintenance fees, etc.?). If you bought into BLT, you could always transfer into SSR, and you would be paying lower MFs, yet only paying a couple extra dollars per point, and could still finance through Disney.

I'm just giving you some food for thought. DVC is a huge financial decision, and I want to give you a couple more things to think about. Good luck!!

 

[missycj96]

OP, maybe you should call back and make sure because that doesn't sound right to me. I'm in the process of buying a resale. The Time Share Store works with Tammac financial and financing was no problem. Something doesn't sound right.

 

[CarolA]

A couple of things.

Yes, resale is cheaper, but IF you are financing it may wind up being MORE costly.

The loan you get from these services is a PERSONAL loan, not a real estate loan. It is not secured by the timeshare. This means two things

1. Interest rates are HIGHER. My first DVC was financed for a short time by Tammac. I can't recall the rate but it was much higer then Disney (and I only agreed because I knew the "cash" would be avaialble soon and the "cost" to get the cash early exceeded the interest cost) So make sure you aren't going to wind up spending more when you add in the interest. Be realistic. Yes you MIGHT pay it off sooner, but... figure you won't LOL!

2. The interest is NOT tax deductible for most of these loans. Once again we are back to it's not a real estate loan. Disney's is a real estate loan secured by the timeshare which I believe makes it deductible (Remember tax advice on the DIS is worth what you pay for it )

So make sure you are comparing apples to apples when buying. If the "cheap" per point price is going to cost more then Disney when it comes to actual cash outlay, it's not a good deal!

 

[princessbride6205]

OP, maybe you should call back and make sure because that doesn't sound right to me. I'm in the process of buying a resale. The Time Share Store works with Tammac financial and financing was no problem. Something doesn't sound right.

Thanks for the update!
We ended up making an offer (yesterday!) on a steal of a 50-pt contract so we could pay cash. We may end up adding on a bigger chunk with financing in the future. Or we may now add on through Disney, since we don't have to do a 160 point contract all at once. So that's my newly formed advice: buy a small contract with cash and add on more later! To the OP, if you can buy a small contract out of pocket, maybe you would qualify for Disney financing on an add on?