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can i borrow from my 401(k) to make a down payment on a house?

Jessica · Last edited by Jessica on Tue Jul 26, 2005 4:15 am

Hi Charlotte.

Welcome to MortgageFit forum.

Obviously you can make a down payment on a house from your 401(k) plan account. But whether you will be offered the loan depends on your plan summary and the plan administrator.

Generally loans from 401(k) plan account are allowed in cases of extreme need such as health or accident problems, the financing of your home or for educational purposes.

But before taking a 401(k) loan, you should first find out whether the lender or the bank you are borrowing from will accept that loan as the down payment.

Hope you will find this information useful. For further reference, go through

http://www.mortgagefit.com/401k.html and
http://www.mortgagefit.com/401k-403b-loans.html

Wish to receive any further queries.

Regards,
Jessica.

Guest

is there any risk from taking a loan from my 401(k) plan?

Jessica · Posted: Fri Jul 01, 2005 1:26 am Post subject: RE:

Hi Charlotte

Welcome back to the forums.

Let me advise you to consider other loans before you plan to take a loan from your 401(k) plan account. This is because it involves a certain amount of risk. If you quit the job or you are terminated, you will have to pay off the entire loan within 60 days.

In case you fail to repay the loan within the specified time, you will have to pay taxes on the outstanding balance including an early withdrawal penalty if you are under the age of 59 and ?.

Please feel free to write back

with further queries.

Regards,
Jessica.

Guest

can I decide how i'll invest from my 401(k) plan?

Jessica · Posted: Mon Jul 18, 2005 2:28 am Post subject: RE:

Hi Selina.
Welcome to MortgageFit forum.

You will find the information regarding your question as you go through http://www.mortgagefit.com/401k.html

Wish to hear from you soon.

Regards,
Jessica.

Guest

I have been a member of 401K for about 6mo, I need to borrow money to pay my rent and get my gas turned on. Is there a waiting period before I am eligible for a loan?

elnoralittle · Posted: Wed Oct 01, 2008 10:05 am Post subject: RE: Tonicapers & Charlotte

From a lender's standpoint, there is generally no problem using funds from a 401k to use as a downpayment. The lender, most times, will ask for a paper trail of where the down payment came from.

On most 401k's you can withdrawl due to hardship. You should contact your 401k administrator to find out if you are eligible for such a withdrawl. Some withdrawls carry penalties, and most have to be repaid over time.
These are things to consider when making the withdrawl.

If you simply want to state a 401k as an additional asset, you need to be able to document that it can be used in cases other than death or retirement.

Contact your plan administrator to get the details of your 401k.

lisascherzer · Joined: 04 Jan 2008 Posts: 755 1.12 Dollars($)

Yes you can.

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