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webhopper
Posts: 7,230
Registered: ‎09-16-2011
Re: Can I use my 401k to help me purchase my dream home?

DallasLoanGuy wrote:

borrow the funds from the 401k

 

the payments do not figure into dti

 

this is the est course of action for most

 

 


+1...  This is what I did.  I borrowed 8.5k from my 401k to help with DP and closing costs in January 2012 of 11k on a conventional mortgage w. 5% down, 3% sellers paid closing costs, 175k sales price.   The 401k loan payments did not factor into my DTI since it was secured by my own financial assets.  My 401k balance is about 50k and I'm 31.   I paid off the 401k loan in April with my bonus.  Then I took out another loan against my 401k and paid off my husbands dodge which he bought before our marriage.  The interest rate was 21% on that dodge... I would much rather pay myself 5.5% than pay Americredit   21%


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