401k - Loan Qualification
Just wondering if anyone can give some input on this... How does one's 401k retirment account affect them in qualifying for a home loan? The 401k account has not been borrowed against. Thanks in advance. by stevef1977 from Tampa, Florida. Feb 19th 2010
Leo Harvey (LHARVEY)
#6 ranked lender in Pennsylvania - 149 contributions
The vested balance in the account is used as one of the qualification indicators as an asset. It is a positive indicator as most program guidelines require a borrower to have certain number of loan payments in reserves.n Your reserves would include 75% of the vested balance.Did you know that you can also borrower from the 401K to pay for the purchase of a home without incurring any penalty from the IRS.
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