401K Loans

[Anonymous]

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

[Lel]

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.

[Anonymous]

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

[MidnightVoice]

Mine do NOR appear on my Credit reports.

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

[Anonymous]

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.

[Lel]

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@Anonymous wrote:

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

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I disclosed it to the lender.