Can we use loan from 401k to buy a home

[punyavathi]

Experts opinion please?

[cloud]

ltt

[AndhraneedSCS]

Yes, you can. You can take up to 50% of the amount as a loan. you can repay it within 60 months (no documentation needed) or 120 months.

 

I am not sure if it is a good idea though 

[Vaampire]

Yes. 4% interest which gets added to ur 401k. 

[kothavani]

I bought it 20 k short unte tisuna 4 years back, it’s 30 year loan paying your account, if you got a house unlookibg for just buy it , don’t take huge amount though, some companies when you resign they ask to pay the loan back else they will close the account and it becomes taxable

[Variety_Pullayya]

company move aite you have to pay it back within the start of next tax year. 

better to take financial advice in case you are moving companies. there are ways to take new loan from new company by closing the old one.

[hyperbole]

you are eligible for a loan of 50% of you 401k balance with a max upto 50k. This will be a loan and you will have repay monthly. 

 

[kothavani]

39 minutes ago, Variety_Pullayya said:

company move aite you have to pay it back within the start of next tax year. 

better to take financial advice in case you are moving companies. there are ways to take new loan from new company by closing the old one.

Mine was fidelity Edo plan I did not , I still have loan and paying 

[punyavathi]

thanks all for the suggestions

[dasari]

One advantage with 401k loan ...you dont need  to have credit check and low interest..etc

 

one disadvantage is ...if you change job you need to pay full amount in 6 months after you quit the employer...

[CheGuevara]

3 hours ago, Variety_Pullayya said:

company move aite you have to pay it back within the start of next tax year. 

better to take financial advice in case you are moving companies. there are ways to take new loan from new company by closing the old one.

Company tho link em ledu... nuvvu enni companies change aina same loan with same terms untundi and you have to pay it back as usual...the only change is when you took the 401k loan, the company deducts the payment (After tax)from the paycheck and once you leave the company instead of paying from your paycheck, you have to pay from your bank account.

[former]

58 minutes ago, CheGuevara said:

Company tho link em ledu... nuvvu enni companies change aina same loan with same terms untundi and you have to pay it back as usual...the only change is when you took the 401k loan, the company deducts the payment (After tax)from the paycheck and once you leave the company instead of paying from your paycheck, you have to pay from your bank account.

Not always. It depends on current company conditions with 401k Bookkeeper.

[k2s]

6 hours ago, AndhraneedSCS said:

Yes, you can. You can take up to 50% of the amount as a loan. you can repay it within 60 months (no documentation needed) or 120 months.

 

I am not sure if it is a good idea though 

Not 50% ... 50k or 50% of 401k amount which ever is greater

[CheGuevara]

28 minutes ago, former said:

Not always. It depends on current company conditions with 401k Bookkeeper.

nee current company 401k bookkeeper and previous company bookkeeper ki link e ledu.....their conditions are only with the 401k with whatever company you came with,.....they care less about your previous company.....

nenu already previous company tho teesukunna vere company ki move aina and i am paying it without any issues.

[Chakram12]

38 minutes ago, k2s said:

Not 50% ... 50k or 50% of 401k amount which ever is greater

not greater, lower