401k Home Purchase Loan

Post date: 2023-03-23 10:19:14
Views: 65
401k loans allow for longer payback timelines when the funds are used to purchase a home. Instead of 60 months (5 years), it can be as long as 30 years. When the cost to close is less than the maximum amount you can borrow, are you restricted to the loan deposit amount, the total cost to close amount, or the normal limit of half your funds up to $50,000 total?

Imaginary numbers...

If your 401k has $150,000 in it, you can usually borrow $50,000 from it using the normal rule of half the dollar amount or $50,000, whichever is less.

If you are buying a home, and the down payment is $20,000, and the total cost to close is $40,000, and you want to take a 401k home purchase loan with a maturation date beyond the normal 60 month limit, what is the total amount you can borrow?


  • the normal limit, $50,000, still applies

  • the total cost to close, $40,000

  • the loan deposit only, $20,000

Please click Here to read the full story.
 
Other Top and Latest Questions:
Powell may have a hard time avoiding Trump's 'Too Late' label even as Fed chief does the right thing
With foreign tourists boycotting the U.S., businesses brace for falling sales
Bitcoin back above $100,000: Financial planning icon Ric Edelman reacts to the crypto ETF boom
Audiologist recommendation for NELA area?
Fortnite applies to launch on Apple's App Store after Epic Games court win
Activist Elliott reaches key agreement with Charles River. Here are three ways to create value
First Chinese freight ship goods hit with Trump's 145%-plus tariffs arriving at U.S. ports
Rippling valued at $16.8 billion as HR software startup raises $450 million, says IPO not imminent
Help me get a sick cat to eat
As new Social Security leadership takes the helm, here are the changes beneficiaries need to watch