My dilemma

[walkerfamily]

I just received all of my paperwork in the mail. All of this paperwork seems so overwhelming.

My husband is in the military and we have never owned a house because we have never been in one place for an extended period of time. My friend is currently closing on a house and says that although it would be great to have a timeshare it might put things on hold if we are looking to purchase a house with in the next ten years (the length of the loan). She stated that this payment may not allow us to qualify for up to $30,000 on a house and that could mean the difference between your dream house and a house that you could settle with. I know that she is looking out for what is best for me but I feel like she is raining on my parade. Has anyone on this post bought a house a few years after they purchased from DVC?

 

[floridafam]

Unfortunately, you will have to disclose your DVC loan on your mortgage application should you apply for one.

This would not apply if you were buying DVC outright-then it's nobody's business-you own it outright and you don't have to disclose any obligation on a mortgage app because you wouldn't have the obligation.

The DVC loan does not appear on your credit report, which is nice.

Are you financing through DVC?

Have you thought about possibly shortening the terms of the financing and having it paid off before you were to buy a house?

Let us know what you do and good luck.

 

[tinkerbellrere]

Hi Heather!
I know how you feel! I want to get on board with DVC too! However, we are planning to buy a house in the spring. I am afraid that purchasing DVC will also limit our ability to get a good mortgage rate and how much we will qualify to borrow. Sooo we are not planning to purchase DVC until we look at our finances 6 months after we are settled into our house and know that DVC will not strain us. I have been struggling with this for a while. The prudent and wise thing to do is to sit down with your spouse and set goals of where you want to be in 5 years, ten years etc and plan financially.
I hate to loose that $10.00 a point discount right now but from reading all the post from the experienced DVC'ers, I know that good deals on resales are to be found. Who knows what kind of incentives DVC will be offering when more buildings open up for use at SSR. DVC has been around now for over a decade and I have just resigned myself to be patient.

Disney can be addictive but I also have to live in the real world and realized that DVC is a luxury that I just can't afford right now. Don't be too hard on your friend. Sometimes we need someone to help us see the bigger picture! I was glad that I saw mine! Hope this helps and good luck!

 

[milachy]

Disney does not report the finances to the credit agency?

Can anyone confirm this? If it is true can someone explain why?

Thanks
Michael

 

[floridafam]

I believe they only report it if you are behind on your loan.

 

[milachy]

Figures... Nothing to help you,only to hurt you..

I could use a little bump up in my credit and this would have been nice.

 

[zurgswife]

If you get a loan through Disney for your timeshare...IT IS NOT REPORTED TO YOUR CREDIT COMPANY.....If you get the money any other way that loan amount will....So, you will not have to disclose it as it won't show up...

 

[floridafam]

We were told by our mortgage lender that we would have to disclose it even though it is not on our credit report-IF we still had a loan balance at that time.

I asked him twice.

You may want to check with a mortgage lender if you know one just to make sure.

 

[disneycrazed139]

We were told by our mortgage lender that we would have to disclose it even though it is not on our credit report-IF we still had a loan balance at that time.

I would say that, of course, you should disclose it--you SHOULD disclose any debt. But I don't think you HAVE to do anything. (I'm really not trying to encourage anyone! It's just the rebel in me.)

 

[MiaSRN62]

About 18 months ago I was inquiring on a home equity loan to consolodate some cc payments etc and DVC did show up. I never gave that information out because, as mentioned here, didn't think it showed up. I am totally current with all dues and payments ? I recall the loan manager mentioning that we had DVC and that we were current ? So how did he know this.....anyone know ? Maybe because he was looking at our credit report in relation to a home equity loan ?

 

[princetonnj]

_______________________________________________
I would say that, of course, you should disclose it--you SHOULD disclose any debt. But I don't think you HAVE to do anything. (I'm really not trying to encourage anyone! It's just the rebel in me.)
--------------------------------------------------------------------------------

If you sign the loan application and do not disclose all debt you are committing Bank Fraud which is a federal crime.

 

[Terry S]

I have a family member that is a mortgage broker and he pulled my credit report and it is not on there. So when we refinanced he basically told me that if I didn't tell them, they wouldn't know and it wouldn't affect my debt to income ratio. Of course he reminded me that "we never talked about this". So, of course you should tell them all your debt, but you can forget about that debt temporarily, I play the dumb blond card when I need too!

 

[mikesmom]

If your hubby is career military, will you realistically be buying a house in the next 10 years? Or is it safe to assume you will still be moving around? If so, DVC might be the only consistent "home" you will have for a while. I would never encourage someone to do something that would mess up chances at a home, but if you probably won't be getting into it, anyway, DVC may be an option. Or if you weren't getting into a home until 7 or 8 years down the road, at that point wouldn't the almost-paid-off-DVC be a plus for your credit?

 

[CarolA]

I am not sure where the $30,000 number comes from.

How many points are you buying? And actually it is your debt ratio that comes into question. If DVC is the only debt you have I would not think it is going to make a big difference. If you have lots of car and credit card debt then..... The other thing is I never buy all the house I can qualify for. I am always amazed at what the "bank" thinks I can afford to pay. Yes, I probably could pay what the bank thinks I could, but there would be practically no money left for fun stuff like going to Disney. I don't want to be "house poor" (and I have friends who are. They have the huge house, but can't afford furniture!)

 

[IndyScott]

One of the best benefits to service members is Veteran's Administration guaranteed loans. This will also factor into (hopefully reduce?) what loan rate you receive as well as your down payment and PMI.

I wouldn't want to make a recommendation of whether or not to buy based on the limited information given here, but maybe you could ask your guide? He/she probably has some experience with families in similar situations...

 

[ClarabelleCow]

Even if it doesn't show up on your credit report, when you apply for your loan, they may ask for bank statements, or if its your bank, they can look at your account, and see you are making payments monthly, they may ask. I wouldn't mess with it because it is fraud, I would disclose it, but because you have no other debt, I wouldn;t worry about it.

 

[HeatherPage]

We financed DVC through Disney before we bought our house. We used a V.A. loan as my husband used to be in the Marine Corp. We did not disclose the loan and it did not show up on credit check. I guess I didn't realize that it would be construed as bank fraud. No matter as we are now selling our DVC so that won't affect the next house we buy. I love Disney and DVC is great but if you want another viewpoint of someone selling, look back several pages for my post "Food for Thought...Bearing my Soul" post. I list several reasons why we are now selling. I'm not trying to rain on your parade either, as I remember how excited I was when we first bought into DVC, but maybe it will give you another perspective.

Hope this helps from another Heather

 

[LIFERBABE]

Being prior military, when we purchased our first home, I had an advanced pay loan (does not show up on CR either) that I was repaying monthly from my paycheck. I did not know I was supposed to report this as it was my pay and after we closed the mortgage broker said that I would have not qualified for the loan if they had been aware of it.
I did not use the VA benefit to secure my loan as I was saving that benefit for my REAL house so I went conventional. (Lots of rules too)
During the process of homebuying my downpayment increased from 3% to 5% because tax estimates increased and that increased my DtR which required I come up with a larger downpayment. My loan approval was that close. I am glad I purchased a home while on active duty as it gave our family roots through the transition of leaving the military and starting over.

It was no big deal and I got to keep my house (LOL) , but when purchasing a home, you have to keep close tabs on your debt to income ratio.

If you carry minimum debt and can maintain your Debt to Income below 35% then DVC may be an option. A car or two can quickly put you in this range and if you have CC debt that's another consideration.

Your friend is telling you correctly, and as much of a DVC fan as I am, I know first hand how small debt can quickly put you in the unqualified range for a home.

Does anyone know if dues count as debt? That I don't know.

 

[Lesley]

I don't think I'd take a loan out for DVC if I were looking to purchase a house in the near future. That said, we own DVC and don't own a house (yet). We aren't military but were undecided as to where we wanted to settle when we joined DVC....otherwise we probably would have used that money for a downpayment on a home. Also, we didn't have to take out a loan for DVC....I don't think we would have joined if we had to do that.

It doesn't sound like DVC is the greatest idea right now in your situation (assuming you'll be looking to buy a house soon)....but that doesn't mean it will always be a bad idea! And if you won't be buying a house until after the loan is paid off....well, then I'd probably go ahead with it. We are quite glad we did.

 

[HeatherPage]

LIFERBABE,
Ok not to get totally off subject here, but as long as you sell the first house and the loan paid in full with the V.A. certificate, isn't your eligibility restored in that instance? From everything I've read that is how I am interpreting it. (I hope so, because we plan on using it again once we sell our home, which was only to be our first starter home).