Paying for Your DVC Contract
Most people do not have $15,000 to $30,000 in cash sitting around for a DVC resale purchase. That is completely normal, and it is exactly why DVC financing exists. Several lenders specialize specifically in timeshare and vacation ownership loans, and the process is faster and simpler than you might expect.
Let us walk through your actual options, what the numbers look like, and how to decide if financing makes sense for your situation.
How DVC Loans Work
DVC loans are different from traditional mortgages in several important ways:
- They are typically unsecured personal loans (no appraisal, no home equity requirement)
- Approval is fast: Most lenders give you a decision within 24 to 48 hours
- Terms are shorter: 3, 5, 7, or 10 years (not 30 years like a mortgage)
- Interest rates are higher: 12% to 15% APR is the typical range
- Down payment: Usually 10% to 20% of the purchase price
- No prepayment penalty: Most lenders let you pay off early without extra fees
Yes, the interest rates are higher than a mortgage. That is because the loan is unsecured (the lender cannot foreclose on your house) and the amounts are relatively small. But the shorter terms mean you are not paying interest for decades.
Real Payment Examples
Let us look at actual numbers for common scenarios. These assume 12.9% APR with 10% down:
150 points at Saratoga Springs ($110/point = $16,500 purchase, $14,850 financed):
- 5 year term: approximately $338 per month
- 7 year term: approximately $265 per month
- 10 year term: approximately $218 per month
200 points at Bay Lake Tower ($155/point = $31,000 purchase, $27,900 financed):
- 5 year term: approximately $635 per month
- 7 year term: approximately $498 per month
- 10 year term: approximately $409 per month
160 points at Animal Kingdom ($115/point = $18,400 purchase, $16,560 financed):
- 5 year term: approximately $377 per month
- 7 year term: approximately $296 per month
- 10 year term: approximately $243 per month
Want exact numbers for your specific contract? Our instant quote tool calculates your payment in seconds.
What Lenders Look For
DVC lenders evaluate your application based on:
- Credit score: Most require 600+ minimum, with better rates at 700+. Read more in our FICO score requirements guide.
- Debt to income ratio: Your total monthly obligations (including the new DVC payment) versus your gross monthly income
- Employment stability: Steady income history
- Down payment: Larger down payments can qualify you for lower rates
The good news: DVC loan approval rates are high compared to traditional mortgages. The amounts are smaller and the terms are shorter, so lenders take on less risk per loan.
Choosing Your Loan Term
Shorter terms cost you less in total interest but have higher monthly payments. Here is the trade off for $15,000 financed at 12.9%:
- 3 years: $505/month, total interest paid approximately $3,180
- 5 years: $340/month, total interest paid approximately $5,400
- 7 years: $270/month, total interest paid approximately $7,680
- 10 years: $220/month, total interest paid approximately $11,400
The difference between 5 years and 10 years is roughly $6,000 in extra interest. That is real money. If you can afford the 5 year payment, you save significantly over the life of the loan.
But remember: you also need to budget for annual dues ($1,200 to $2,000 per year depending on resort and contract size). Your true monthly DVC cost is loan payment plus prorated dues.
The Total Monthly Cost of DVC Ownership
Let us put it all together for a 150 point Saratoga Springs contract with a 7 year loan:
- Monthly loan payment: $265
- Monthly prorated dues ($7.71 x 150 / 12): $96
- Total monthly cost: $361
After the loan is paid off in year 7, your only ongoing cost is the annual dues (about $96/month, increasing 3 to 5% annually). That is when DVC ownership becomes incredibly inexpensive compared to booking Disney deluxe rooms at $500+ per night.
Should You Finance or Pay Cash?
Finance if:
- Paying cash would empty your emergency fund
- You want to start vacationing immediately rather than saving for 2 to 3 years
- The monthly payment (plus dues) fits comfortably in your budget with room to spare
- You have no other high interest debt (credit cards, etc.)
Pay cash if:
- You have the money available without touching emergency savings
- You dislike paying interest on principle
- The interest rates available to you are above 15% (poor credit)
- You can wait a few months to save up the full amount
There is no wrong answer. Both paths lead to the same great DVC vacations. Financing just lets you start sooner while spreading the cost over time.
How to Get Started
The process is straightforward:
- Find a contract you want to purchase (through a resale broker)
- Apply for financing with your contract details
- Receive approval (usually within 24 to 48 hours)
- Close on your contract (the lender works with the title company)
- Start booking vacations once Disney transfers the membership to your name (30 to 60 days after closing)
Have questions about which lender fits your situation? Compare our lending partners side by side, or learn how the full process works from start to finish.