Purchasing a Disney Vacation Club resale contract is a significant investment that can provide decades of magical Disney vacations. Understanding your financing options is crucial for making this dream attainable without straining your finances. This comprehensive guide covers everything you need to know about DVC resale financing.
Why Finance Your DVC Purchase?
While some buyers prefer to pay cash, financing your DVC resale offers several compelling advantages that should not be overlooked:
- Preserve Savings: Keep your emergency fund and investments intact
- Immediate Enjoyment: Start using your points right away while paying over time
- Budget-Friendly: Spread the cost into manageable monthly payments
- Opportunity Cost: Your money may earn more in investments than the loan interest costs
Understanding Down Payment Requirements
DVC lenders typically require a down payment ranging from 10% to 20% of the purchase price. Your down payment amount affects both your monthly payment and interest rate.
Down Payment Impact Calculator
| Purchase Price | 10% Down | 20% Down | 30% Down |
|---|---|---|---|
| $15,000 | $1,500 | $3,000 | $4,500 |
| $20,000 | $2,000 | $4,000 | $6,000 |
| $25,000 | $2,500 | $5,000 | $7,500 |
| $30,000 | $3,000 | $6,000 | $9,000 |
Interest Rates and Loan Terms
Current DVC resale financing rates typically range from 11.9% to 14.9% APR. While these rates are higher than traditional mortgages, they are significantly lower than credit cards and do not require your home as collateral.
Factors Affecting Your Rate
- Down payment percentage (higher = better rate)
- Loan term length
- Credit score and history
- Total loan amount
Sample Monthly Payments
Based on $18,000 financed at 12.9% APR:
| 5-Year Term: | $408/month |
| 7-Year Term: | $318/month |
| 10-Year Term: | $264/month |
The Application Process
Getting pre-approved for DVC financing is surprisingly quick and straightforward. Here is what to expect:
- Get a Quote (5 minutes): Use our online calculator to see estimated payments
- Submit Application (10 minutes): Basic information about yourself and the contract
- Credit Review (24-48 hours): Soft pull initially, hard pull only when you are ready
- Approval and Closing: Work with title company to complete the purchase
Benefits of Working with a Specialized Lender
Unlike traditional banks, DVC-specialized lenders understand the unique aspects of timeshare financing. They work directly with title companies familiar with DVC closings and can often provide funding faster than conventional lenders.
What You Will Need to Apply
- Valid government-issued ID
- Proof of income (pay stubs or tax returns)
- Social Security Number for credit check
- Contract details from your resale broker
Ready to explore your financing options? Use our loan calculator to see what your monthly payments could look like, and get started on your path to DVC ownership today.