topic 401K Loans in General Credit Topics

401K Loans

Anonymous — Wed, 06 Oct 2010 17:21:48 GMT

Are 401K loans reported on your credit? Is the payment typically added into DTI ratios?

Re: 401K Loans

Lel — Wed, 06 Oct 2010 17:30:40 GMT

I briefly had a couple 401(k) loans and they did not appear on my credit reports. They were only open for a couple months. The payments were included in my DTI calculations when I was applying for a mortgage.

Re: 401K Loans

Anonymous — Wed, 06 Oct 2010 18:17:06 GMT

Thanks Lel. Did it appear in your financial info, or did you disclose the monthly debt?

Re: 401K Loans

MidnightVoice — Wed, 06 Oct 2010 19:55:54 GMT

Mine do NOR appear on my Credit reports.

Part of my regular expenditure each month when looking for a mortgage

Re: 401K Loans

Anonymous — Wed, 06 Oct 2010 22:26:31 GMT

Hello, a 401(k) loan never shows up on you CR. In essence you are the creditor to yourself. I took a 401(k) loan for the closing and downpayment of my home. Make sure IF you are taking a loan for home purchase you are requesting a "residential" loan as you can amortize over 15 years vs. 5 for a "traditional" loan in most cases. You usually only need to provide a signed copy of your P&S by both parties. Yes it should be included in your DTI as mentioned.

Re: 401K Loans

Lel — Wed, 06 Oct 2010 22:10:26 GMT

@Anonymous wrote:

Thanks Lel. Did it appear in your financial info, or did you disclose the monthly debt?

I disclosed it to the lender.