Loan Type

[ALLDISNEYLOVER]

Does anyone know if the loan for a DVC is considered real estate or personnel? :huh: I am considering borrowing from my 401k, but it depends on if I can use at a real estate loan with a longer loan term. If it is considered personal I will have to have a shorter term which means higher payments etc. Any suggestions? :duck:

[tjkraz]

Well, when DVC writes the loan to purchase points it is considered real estate. Most people can deduct the interest paid on their tax returns because it is considered mortgage interest on a second home.

If I understand your situation correctly, it sounds like your 401k investment company would be making the loan, and that the loan will either be classified as personal or real estate. If so, you'll probably have to ask them their interpretation to be 100% certain.

While DVC is generally regarded as an excellent program with high property values on the resale market, the same cannot be said for many other timeshares. Many lenders do not put timeshare purchases on equal footing with, say, the purchase of a home or another similar real estate purchase.

[Deep-Thots]

Hi --

Based on your question regarding resale brokers on another thread, it looks like you're considering going resale. I'd guess that unless the loan is written through Disney (a la tjkraz's post), the loan would not be viewed as a real estate loan.

Still, it's best to ask the 401k rep directly.

[Plutofan2]

Definitly check with your 401K administrator but I beleive that only your principal residence qualifies for the extended terms on a 401K loan. Check with your administrator about the deductiblilty of the interest on a 401K real estate loan. There may be IRS provisions preventing the interest from being tax deductible.