New to DVC and thinking about joining.... question

[ethanwa]

Hi all -

What are the requirements for joining Disney Vacation Club?

Income?
Can you have a bankruptcy or foreclosure on your record?
What about liens?
Is it like buying a house? Or nothing like it?
Do you need a decent credit score?
What kind of proof of income do you need?
With DVC, how long am I locked in? And how do I get out if needed?
What are other people's typical monthly payments?

I ask all of these questions because my wife and I went through some financial hard times a few years back. Everything is great now, but I know when it comes to real estate and financing, your past can haunt you.

What do I need to know before taking the plunge with Disney Vacation Club?

Ethan

 

[adminjedi]

Hi all -

What are the requirements for joining Disney Vacation Club?

Income?
Can you have a bankruptcy or foreclosure on your record?
What about liens?
Is it like buying a house? Or nothing like it?
Do you need a decent credit score?
What kind of proof of income do you need?
With DVC, how long am I locked in? And how do I get out if needed?
What are other people's typical monthly payments?
I ask all of these questions because my wife and I went through some financial hard times a few years back. Everything is great now, but I know when it comes to real estate and financing, your past can haunt you.
What do I need to know before taking the plunge with Disney Vacation Club?
Ethan

If you save and pay cash, you don't have to worry about your financial history or interest rate.
Once you buy, whether cash or financed, you own it and are liable for MFs yearly until end of the contract.
If you no longer want to own it, Disney does not buy back. You can sell it on the re-sale market and pay a commission to the broker.

 

[JimMIA]

If you purchase resale, you can save big bucks -- in some cases 50% or more. That may allow you to pay cash (getting more points for the same down payment). In addition, some of the resale companies (see the banner ads at the top of this page) have financing accommodations.

Just so you know, Disney offers financing, but their lowest rate is 10.75% and the standard rate is 14.75% I believe. Those are whopping interest rates to tack onto a luxury purchase like DVC.

Before you take this plunge, do a TON of research on what DVC is, what it is not, how it works, and what the other options are. You should be really sure of what you're doing before you make a financial committment for 30+ years for something like this.

 

[disneynutz]

In addition to coming up with the down payment and purchase cash, you have to pay dues, transportation, park admission, food and miscellaneous expenses every year for the life of the contract. These costs increase 3% per year and you pay them for the life of the contract. That's $2000 or more per year depending on your family size.

Bill

 

[Sandisw]

In today's market, I would not consider resale value as part of the equation either.

Buying in to DVC is for the long haul and while their is a decent market right now for selling (decent in terms of buyers out there willing to buy contracts), that may not always be the case.

 

[TheRustyScupper]

What are the requirements for joining Disney Vacation Club?
. . . ability to pay cash, or
. . . ability to repay the loan
. . . and, annual maintenance fees

Income?
. . . depends upon size of loan

Can you have a bankruptcy or foreclosure on your record?
. . . this does not eliminate you automatically
. . . Diz is quite liberal with underwriting requirements

What about liens?
. . . ditto

Is it like buying a house? Or nothing like it?
. . . nope
. . . this is not a mortgage on tittled land
. . . it is a timeshare loan
. . . actually it is a loan on a lease

Do you need a decent credit score?
. . . just not ugly

What kind of proof of income do you need?
. . . they will verify income with employer
. . . if self-employed, copies of tax returns, etc

With DVC, how long am I locked in?
. . . loan could be 7-10 years
. . . or shorter

And how do I get out if needed?
. . . sell it

What are other people's typical monthly payments?
. . . depends upon how many points you buy

What do I need to know before taking the plunge with Disney Vacation Club?
. . . how often you plan upon going (yearly, bi-yearly)
. . . how long do you want to go (length of time)
. . . can you afford it