Question about DVC and new primary/secondary mortgage process

PedroD

Earning My Ears
Joined
Aug 5, 2020
We are recent empty nesters...well sort of...we were until COVID sent our youngest Freshman home for the semester...but we are close in any case!

A new job which doesn't seem to care where I live/work has us dreaming about where to live. Time for something new after raising our kids in our current location. As we dream, we have different scenarios bouncing around (one nicer residence, one property for rental near the beach and then a more modest primary residence somewhere cooler, etc.)

We also have set aside money specifically for DVC contracts that will be deeded equally, one for each of our 3 kids. I was about to jump on something I saw and we wondered if one or multiple DVC contracts is going to create confusion/complexity on the mortgage process as we sell our current residence and then buy one or two other properties in the next 6-9 months.

Any words of wisdom? Is it smarter to hold off on DVC purchases until after we settle out on new mortgage(s)?
 

RoseGold

DIS Veteran
Joined
Jan 21, 2020
If a five figure timeshare is going to make the difference on whether you can afford your house you live in, I wouldn't be buying into DVC at all.

I would never finance it, because it flips all the math.

Also might be worth talking to your estate lawyer. There is more than one way to hold title on DVC, and if you plan on passing it down, it might be better to do it now.
 
Last edited:

PedroD

Earning My Ears
Joined
Aug 5, 2020
Sorry, should have been more clear. We would not be financing anything on the DVC transactions. So we would be 'owners' of 3 contracts, but would have the maintenance fees, etc. that might work against us as we secure new mortgage(s). We live well within our means and have never been very leveraged at all on real-estate. But now that we have our kids squared away we might decide to be a little more aggressive to get the nice pre-retirement place(s). I just worried for a second that DVC or any timeshare properties might work against us or complicate things.
 
  • MICKIMINI

    Love the Mouse!
    Joined
    Sep 6, 2003
    I don't think it is a good idea to buy anything too big (like a car) just before you get a mortgage. IMO, I'd get your home squared away and then purchase three contracts. The least complicated scenario is same resort, same UY. Second less is different resorts, same UY. I have two UY's and two resorts with multiple contracts which I can handle for multiple trips and gifting.

    We down sized five years ago and paid cash for a smaller but nice home. We have been adding contracts with the goal of staying 4-5 weeks at WDW in January in retirement. It takes awhile to get things in order and you are smart to start planning now. DH is still a few years out and I'm still adding on small contracts. Often times, sellers have multiple contracts if you can figure it out from the listings. I have two currently in ROFR that will be combined for one closing (about half off). This is the third time I've done it. Down the road, if we need cash, we can sell one contract at a time, keeping our larger contracts to gift to our son and DIL if our cash outlasts us. We own in 25, 50, 100, 150 point increments. The small contracts always hold value IMO.

    Buying just one contract (depending on your cash flow), probably won't be a big deal, but only you know the numbers. Finding a good deal is sketchy now IMO, but things usually show up around the end of the year as MF's come due. You have to stalk the listings every single day. I missed out on a 25 point and 50 point Oct UY AKV (same seller!) about a month ago. It was the ONE day I didn't look early in the morning!

    Good luck!
     

    bwvBound

    DVC SSR & other timeshare
    Joined
    Feb 5, 2004
    FWIW, we closed on a 2nd home about 8 months after buying DVC. DVC did not have any bearing on the 2nd property or its mortgage.

    Edited to add: Then again, our situation was years ago before significant changes rolled out across the mortgage industry. YMMV
     

    RoseGold

    DIS Veteran
    Joined
    Jan 21, 2020
    I'd just talk to a loan officer. I recently bought and he didn't blink an eye at car changes, an investment in a rental property, and an inheritance all really close to close. It's never too early to get a loan officer, if you know where you will be buying.
     

    davidl81

    Mouseketeer
    Joined
    Aug 12, 2008
    FWIW your ownership won’t show up on any credit reports etc. it would be up to you to disclose those monthly/yearly fee payments to Disney. But unless you are buying a 1000 point contract I can’t think your fees would be remotely close enough to impact anything on a mortgage
     

    masupo

    Mouseketeer
    Joined
    Mar 19, 2014
    FWIW your ownership won’t show up on any credit reports etc. it would be up to you to disclose those monthly/yearly fee payments to Disney. But unless you are buying a 1000 point contract I can’t think your fees would be remotely close enough to impact anything on a mortgage
    It would show up on a title search though (I believe). But I agree with you and the others that it probably wouldn't impact a mortgage.
     

    Connect

    Disney News and Updates

    Subscribe to the DVCstore.com
    mailing list!






    SUBSCRIBE TO OUR DAILY EMAIL
    Subscribe and never miss out on Disney News, Deals and Updates.







    Top