Comments on: Who Really Funds Home Loan?

By: Stephen T

Stephen T — Mon, 08 Mar 2010 05:10:59 +0000

Don’t ever use retirement funds for a house. Don’t ever take a loan out against them because not only will you lose retirement savings you’ll have to pay a penalty to access your own money.

Please don’t do this.
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By: daeve930

daeve930 — Mon, 08 Mar 2010 05:08:59 +0000

I've been processing and underwriting loans for 12 years, and I've never seen anything on a credit report about a 401(k) repayment. The payment will probably be deducted from your pay checks. That wouldn't affect your gross pay, which is used to determine ratios. I don't know for sure, but I don't think it will affect your debt ratio. You should ask your lender.
References :

By: Fire-n-Ice

Fire-n-Ice — Mon, 08 Mar 2010 00:06:09 +0000

Using 401k loan for home purchase?
I am planning to take a loan against my 401k as funds for a down payment on a new home. Does the repayment amount of that loan count against my debt ratios for qualifying for a mortgage? Or is that amount excluded since it’s really my money anyway?