Lightstream and Hard to find contracts

[cruisehopeful]

I didn't want to contact Lightstream or any brokers until I am serious. At this point, I am still pondering picking up a small VGC contract. They are very difficult to find and will probably get snatched up before I see them. The other issue is that since they are so dang expensive, I don't have the funds to buy available.

I looked at Lightstream loans and would intend to pay it off in a year or two. It looks like once approved, I'd have 30 days to accept the loan. If I don't accept a loan in that time, it's a new application process.

A current thought is to talk to a broker about it and ask if they are willing to contact me if they get a listing in the next 30 days. Do any of the brokers do that? The idea would be that I'd be approved for the loan and I could talk to a broker about my parameters (which aren't very narrow) and if they get a listing in the following 30 days, I would just buy it. I'm pretty flexible. I'm not even sure at this point if I would want to do that, but wondering if it's a possibility.

 

[fixerupper]

I applied for the Lightstream loan once I knew my contract got through ROFR. That was taking a while at the time. They approved me immediately, and I had the money within a day I think. I applied for the 3 year and paid it off in a year.

 

[808blessing]

I told a broker exactly what I wanted and to just let me know. She told me to look at the listings every morning and gave me a link. The next morning one was posted! Felt like it was “just for me” but who knows.

 

[Bjaiken77]

Is Lightstream only for resale? Can they be used for direct purchases?

 

[zakdavid]

Is Lightstream only for resale? Can they be used for direct purchases?

Lightstream is basically just a personal loan. They send you the money and you can do whatever you want with it. Direct/Resale/ pay off another a loan, whatever.

 

[Bjaiken77]

Lightstream is basically just a personal loan. They send you the money and you can do whatever you want with it. Direct/Resale/ pay off another a loan, whatever.

yeah, but don’t the rates depend on what it’s for? For example, so I have to identify “time share” as the reason when asked? I have no problem doing so, but I’m just trying to determine the difference between a time share loan (ex. Monera) and a standard personal loan (if any). Wouldn’t I have to show some proof of its purpose? Sorry if my questions seem super I’ll informed.

 

[zakdavid]

yeah, but don’t the rates depend on what it’s for? For example, so I have to identify “time share” as the reason when asked? I have no problem doing so, but I’m just trying to determine the difference between a time share loan (ex. Monera) and a standard personal loan (if any). Wouldn’t I have to show some proof of its purpose? Sorry if my questions seem super I’ll informed.

They let you use the loan for anything/ there isn't actually a restriction in the loan. It is tied to you/no collateral so the only proof is proof of income. I've done it 2x now

 

[Bjaiken77]

They let you use the loan for anything/ there isn't actually a restriction in the loan. It is tied to you/no collateral so the only proof is proof of income. I've done it 2x now

cool…good to know. Thanks!

 

[zakdavid]

no problem!

 

[EYL]

yeah, but don’t the rates depend on what it’s for? For example, so I have to identify “time share” as the reason when asked? I have no problem doing so, but I’m just trying to determine the difference between a time share loan (ex. Monera) and a standard personal loan (if any). Wouldn’t I have to show some proof of its purpose? Sorry if my questions seem super I’ll informed.

You do have to indicate a purpose and the rates do differ. Back in 2019 when I applied to use it on DVC, it was 6.24% for up to 3 years. The difference? The interest rate.

 

[fixerupper]

yeah, but don’t the rates depend on what it’s for? For example, so I have to identify “time share” as the reason when asked? I have no problem doing so, but I’m just trying to determine the difference between a time share loan (ex. Monera) and a standard personal loan (if any). Wouldn’t I have to show some proof of its purpose? Sorry if my questions seem super I’ll informed.

Well....It does say -

You are required to use your loan proceeds for the loan purpose that you selected in your loan application.

In addition, please note that:

• You may not use your loan proceeds to refinance an existing LightStream loan.
• We are currently unable to provide loans for the funding of college or post-secondary educational expenses, or refinance loans that were used for such purposes.
• Loans are made to individuals, not to businesses.
• Funding and payments need to be made to and from a personal banking account.
• We do not provide any loans for cash out refinance purposes.
• You may not use the proceeds of a LightStream loan to purchase bonds, stocks, stock options, or pay back a loan against a stock option. You also may not use your proceeds to contribute to any sort of retirement, life insurance or education savings plan.

But they send the money directly to your bank account and you get the cashiers check to send to the company, so they really don't know/check. I never had to provide any proof or information other than what they required for the credit approval. The difference is that, assuming your credit is good, and you aren't taking ten years to pay it off, you get a waaaay better rate (I was approved for the lowest rate, and paid less than $500 in interest #worthit).

 

[Spinster Travel]

If you have solid good credit, Lightstream is the way to go. Most bank's have the option to check your credit score within your online banking, so you can get an idea before you apply with Lighstream. Just know that the number you see in your online banking might differ a bit from what is generated with Lightstream pulls your credit, so if you're on the "bubble" of "excellent" vs. "good" credit, you MIGHT get a higher rate when you actually apply. The Lightstream website is really good for you to see the range of interest rates based on the loan purpose and loan term. If you get a 3 year loan, the rate is better than the 1-2 year term, but there is no prepayment penalty (and paying extra is super, super easy). For that reason, I went with the 3 year loan and had a rate of 5.95% (this was in August) and am half way to having it paid off. I applied for my loan after my resale contract passed ROFR. Once approved, you can pick the date to fund your loan (which they will simply deposit the proceeds into your checking account). I picked a funding date about 10 days out from my application to allow for closing. That way I wasn't paying interest on money just sitting in my bank account waiting for closing to happen. I had a great broker and the sellers were super motivated to close so I was confident in those funding/closing dates. I plan to use Lightstream again when I add on later this year.

 

[RoseGold]

I just don't see why you would do this. Mathematically, it's cheaper to rent VGC points. And that's without even considering financing. Just rent.

 

[EYL]

I just don't see why you would do this. Mathematically, it's cheaper to rent VGC points. And that's without even considering financing. Just rent.

Well, it could turn to the OP's benefit. Rental rates could go up while buying it now is a one-time cost... Being able to log on at exactly 11 months and grabbing a room for the peace of mind... Also, if the OP decides to sell in 10 years and prices go up even more, it could even be a good little "profit"...

 

[RoseGold]

Well, it could turn to the OP's benefit. Rental rates could go up while buying it now is a one-time cost... Being able to log on at exactly 11 months and grabbing a room for the peace of mind... Also, if the OP decides to sell in 10 years and prices go up even more, it could even be a good little "profit"...

At current VGC pricing, I don't see how that is mathematically possible before financing. Add the cost of financing and closing cost on a small contract, and it's even worse.

Buying a timeshare that lasts for decades, with dues and a mortgage, is the opposite of a one-time cost.

I'd just rent VGC points.

 

[cruisehopeful]

At current VGC pricing, I don't see how that is mathematically possible before financing. Add the cost of financing and closing cost on a small contract, and it's even worse.

Buying a timeshare that lasts for decades, with dues and a mortgage, is the opposite of a one-time cost.

I'd just rent VGC points.

Renting is a much better value, for sure. As a past owner at VGC, I know how the system worked for me and how it didn't work for me. So, I am reflecting on all of that. Honestly, the benefit to having a contract is that if I have to change a reservation or cancel, I still have full control over my points to reschedule. That said, when I was going to buy a larger contract last year, I decided it was actually cheaper for me to pay the $700-$1,000/night for the hotel room if I was only going to book 3-5 nights in a year. Of course, all of these costs will keep going up. I remember when the $500./night rate was way out of my reach and now here I am thinking $800/night isn't that bad. I fully expect the nightly rate to be over $1,000. in a couple years.