Moderator Emeritus
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%

Starting Score: 08/29/2011 TU 671 EQ 674
Current Score: TU 754 EQ 694 EX 697
Wallet: NFCU Visa Sig 25k, Amex Lowes 22k, NavCheck 15k, Amex PRG, Amex Zync, Discover It 13.5k, Amazon Visa 5k
Platinum Spade Garden Club Member: App Free since 1/1/13. No more apps til who knows when?
MyFICO Fitness Goal: 800s Club!

Take the myFICO Fitness Challenge