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SCooby
Guest
0.10 Dollars($)
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 Posted: Fri Jul 14, 2006 1:16 pm Post subject: borrowing from 401k account |
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I am thinking of borrowing from my 401k to meet the down payment. Will it appear on my credit report?
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 jameshogg
Joined: 20 Dec 2005
Posts: 1544
Location: nevada
217.21 Dollars($)
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| Posted: Fri Jul 14, 2006 1:26 pm Post subject: |
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Hi,
It won't appear on your credit report as it's not a public loan. By borrowing from your 401k account you are borrowing against yourself only.
James |
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Samantha
Community Mentor
Joined: 16 Sep 2005
Posts: 1539
Location: MASSACHUSETTS
137.28 Dollars($)
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| Posted: Fri Jul 14, 2006 1:40 pm Post subject: |
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Hi,
As James mentioned it won't show up on your credit report but will appear on your paycheck stub.
When you apply for a loan, your monthly income will show up after subtracting the amount that you will be paying back to the account.
If you can manage your down payment from any other resource, I shall advise you to go for that. Since your 401k account is for your retirement purpose so it's better not to touch it before that.
God bless you.
For MortgageFit,
Samantha
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amy
Guest
0.10 Dollars($)
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| Posted: Wed Aug 06, 2008 1:12 pm Post subject: 401k |
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| How long do you have to have a 401k active to borrow against it? My balance is around 4,000 and I need 2,000. I have had it since 2005 |
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Jessica
Community Mentor
Joined: 08 Jun 2004
Posts: 732
Location: OHIO
134.88 Dollars($)
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| Posted: Thu Aug 07, 2008 5:24 am Post subject: RE: borrow from 401K plan |
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Hi Amy,
Welcome to our community forums.
I don't think there's a time limit there but yes there's a maximum limit up to which you can borrow from your 401k. You can borrow the lesser of 50% of your deposited account balance or $50,000. Just in case you'd like to know more on 401k loans, read through the information on how 401k loans work .
Regards,
Jessica.
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firstloan19
Joined: 11 Aug 2008
Posts: 5
Location: pennsylvania
2.36 Dollars($)
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| Posted: Mon Aug 11, 2008 5:45 pm Post subject: borrow from 401k |
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I would search for any other form of cash before i would borrow from a 401k.
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executivemortgageadvisor
Joined: 16 Mar 2008
Posts: 18
10.34 Dollars($)
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| Posted: Mon Aug 11, 2008 8:02 pm Post subject: Borrowing From 401k Account |
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If you are going to borrow against your 401k, the IRS code that governs 401k plans provides for hardship withdrawals only if: (1) the withdrawal is due to an immediate and heavy financial need; (2) the withdrawal must be necessary to satisfy that need (i.e. you have no other funds or way to meet the need); (3) the withdrawal must not exceed the amount needed by you; (4) you must have first obtained all distribution or nontaxable loans available under the 401k plan; and (5) you can't contribute to the 401k plan for six months following the withdrawal.
Remember that the 401k loan will count against your Debt To Income Ratio, if your loan waiting perior exceeds 30 days then a new paystub will be required and the new loan payment will be assessed.
If there is any other way of coming up with your DP (Down Payment) use it, as stated previously it will not effect your Credit Report but will be counted as debt.
Best Regards,
Robert Summers
Executive Mortgage Advisor
Southwest Funding, LP Branch 777
317-925-1877 |
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