After extensive research and calculations I finally submitted an offer to buy the DVC resale contract. Waiting for the ROFR which suppose to go through in the next 2-3 weeks.
Still have some questions about borrowing points, however. If the contract is approved, I will have full points for Dec 2022 use year, but very few for 2021 use year. Do I understand correctly that I can borrow 50% of 2022 points for the trip in Jan 2022. Are there any issues with borrowing points if the contract is just purchased?
Thank you for your help!
You are correct . There has been a known glitch when borrowing from resale contracts. You might have to call to get it done.
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Thank you!
Bonus question - is it possible to book a stay on borrowed points only (without current use year points)?
Yes, once you borrow you can use them the same as any other points. The issue is if you borrow you must use them or you will lose them at the end of that UY.
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Yup, it’s possible. But your current use year’s allotment gets used up first. You can’t pick and choose which year you want to use.
Good luck on the contract!
Excellent 
Yes, I understand if you borrow, it is final transaction.
Your second sentence is correct. Albeit there are ways around it using dummy reservations.
But the first part isn’t correct. A reservation will first use banked points, then borrowed and then current. That way you can use up your borrowed points and still bank your current ones if you want to.
How so? When you bank/borrow the points it simply puts those respective points into the that use year (so if you bank, it goes to next year’s, and if you borrow and/or cancel, it goes from next year’s to the current use year).
And if the current use year’s cache of points is not used up, you can’t choose to use next years’ points until you do, can you?
You can’t choose, no. But the system does that for you and you can’t change that.
The order is:
Banked
Borrowed
Current
The points are still held separately and accounted for separately.
If you had borrowed points to make a reservation and then cancelled it, the borrowed points then remain in the current year. And when you next make a reservation the system will use those borrowed points first.
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So @Randall1028, I guess maybe that last part is crucial. You can’t just choose to borrow points unless you are making a reservation that will require more points than you already have available - having used any banked points and then current points.
However, having done that, if you then modify or cancel the reservation to use fewer points, the system will use the borrowed points before current ones.
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Right, which is what I said from the beginning.
And once you borrow (and then cancel) those points are then put into the same use year. Which means if you start a new reservation, the current year’s allotment (whether previously banked points, current points, or points borrowed from future)
Which classification of the current year going first wasn’t in question, just that you can’t sit “2021” points and decide “I only want to 50 of 2022 points and nothing else, leave all of 2021’s alone”. Only possible way would be to, as you suggested, bank all of 2021’s bankable points(move them to 2022) and have a zero balance of 2021 allotment.
I guess the phrase “current use year’s allotment” was taken to mean “JUST the points granted during that use-year and nothing else”. But that’s not what I was meaning, I meant everything available/stored into the current use year.
But you can also manipulate it so you don’t need to bank first.
However since in 99% of times when someone wants to borrow points it’s in addition to using current points, it probably doesn’t concern the OP.
By making a reservation that would need to borrow points and then just canceling, right?
What reason would anyone do this? Is it helpful when renting out points?
Yes.
Sometimes people who have multiple reservations might want to manipulate the points. Trying to think through …
It’s today! 
I have no banked points, but all current and future points. And I have a June use year. (I hope there is a June UY, if not we have to use July and it’s July 2nd).
I book a week in November and use most of my current points, June 2021 points.
I then decide to book a few days in February so I have to now borrow points.
But there’s a chance I won’t be able to go because I might not be able to get time off.
So I might need to cancel that reservation, but that means those points are now stuck and would have to be used by the end of May. And I know that isn’t possible.
What I need to do is use those borrowed (2022) points for the November stay, So I need to switch them. That way if I cancel in mid January I can still bank those points by the end of January deadline.
That’s more of a switching issue, but the premise is the same. If you borrow points for a riskier visit close to the end of your use year, you want them to be used for the safer reservation.
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Very helpful details. Sounds like rocket science for the first grader. 
I will need to re-read it more thoroughly when kids are asleep
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So to summarize - if you have two trips planned and one is more likely to happen, you need to book the LESS LIKELY trip FIRST to use the current points for it. If it is cancelled, you still able to bank the points for next year.
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Yes, depending on when those trips fall in your use year. You have to bank points by 4 months before the end of the use year. That process might not always work.
It does highlight though why choosing the right use year is important. If you usually go at a certain time of the year, you want a use year just before that, so you have longer to reschedule if you have to.
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Yes, I picked December UY because we normally travel in January, and possibly May or June - all before the banking deadline.
Thanks again for your help!
I wanted to add a completely different point that might help you out since you have some time to go before you get the bulk of your points. You can buy up to 24 one time use points from Disney. This is done when you make your reservation, only at the 7 month mark. OR you can buy transfer points from another owner. These points keep their home resort UY and 11 month booking window so it gets even more confusing, but they are very convenient.
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