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401K Loans

Mank
Frequent Contributor

401K Loans

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

Message 1 of 6
5 REPLIES 5
Lel
Moderator Emeritus

Re: 401K Loans

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.

Message 2 of 6
Mank
Frequent Contributor

Re: 401K Loans

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

Message 3 of 6
MidnightVoice
Super Contributor

Re: 401K Loans

Mine do NOR appear on my Credit reports.

 

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

The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
But to find a graceful way of staying slid
Message 4 of 6
iluvmyfico
Regular Contributor

Re: 401K Loans

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.

Message 5 of 6
Lel
Moderator Emeritus

Re: 401K Loans

 


@Mank wrote:

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


I disclosed it to the lender.

 

Message 6 of 6
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