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Using 401K loan as downpayment

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tinkle Guest	Posted: Tue Nov 22, 2011 1:53 pm    Post subject: Using 401K loan as downpayment Like 0 Dislike 0 Is using 401K loan a good method to come up with downpayment? How does lender view the application when majority of the downpayment is from my 401k retirement loan under my name?
jameshogg Joined: 20 Dec 2005 Posts: 10477 Location: Nevada 990.06 Dollars($)	Posted: Tue Nov 22, 2011 6:56 pm    Post subject: Like 0 Dislike 0 Hi tinkle, I personally don't think that a loan from your 401k is a good way to come up with the down payment. If you do so, it will actually jeopardize your savings for your golden years. It will be better if you could save the required down payment and then apply for a mortgage. Thanks
jveenstra Community Expert Joined: 10 Nov 2008 Posts: 1310 Location: River Edge, New Jersey 274.62 Dollars($)	Posted: Mon Nov 28, 2011 7:28 am    Post subject: 401k Like 0 Dislike 0 Using the 401k for the down payment is fine is fine. A house is a method of forced savijgs and can be just as good as a 401k for retirement savings. If you pay yourself back with a 401k loan, you have not lost that savings anyway As far as lender is concerned, it should be fine. It is your money. _________________ John Veenstra, Sr Mortgage Consultant Approved Funding Corp Licensed NJ NY CT PA 201-833-0123x278

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