Using 401K loan on down payment for house

[Truefan31]

I guess it depends on the area you live and the cost to busy. I can see your perspective on houses in the 100-200's. Higher cost mean higher deposits. In these cases a person may not want to wait 3 to 5 years to save the deposit. Just giving an option if you have a healthy retirement plan

Then don't buy until you're ready. Taking out 401k loans to get a house (which also will be another loan to pay) is a sign you should wait until you can really afford it.

401k loans are an option. Imo Just a bad one for almost all circumstances. And also people tend to keep borrowing from their 401k, setting a bad habit.

 

[Pimp]

Houses appreciate 5 times where in the fukking United States?

 

[Pimp]

It's your money breh but overall 401k loans are a bad idea unless you facing crazy emergencies (hence an emergency fund). Getting income taxed on it, paying it back with taxed dollars, lost compounding interest, possible penalties on top of that, it's just not a good idea. And prolly the worst thing is people tend to keep borrowing hence a bad habit.

Some guy I worked with borrows from his all the time and it really becomes a habit.. I tried to explain to him the mistake he's making and he said "You don't understand because you have money and never was in need" I'm looking at him like well if someone with money gave me advice I would follow

 

[dblive]

Houses appreciate 5 times where in the fukking United States?

I'm 37. Been working in finance since I was 23. I'v got My CFP and ChFC (although I don't do direct sales)
I said the house has appreciated in value 5 x's the loan amount. 40k put down on a house that cost 250k. 25k from savings and 15k taken out against my 401k...4 years ago. House recently appraised at 330k. Downtown Cincinnati Ohio. Gentrification.

 

[Pimp]

I'm 37. Been working in finance since I was 23. I'v got My CFP and ChFC (although I don't do direct sales)
I said the house has appreciated in value 5 x's the loan amount. 40k put down on a house that cost 250k. 25k from savings and 15k taken out against my 401k...4 years ago. House recently appraised at 330k. Downtown Cincinnati Ohio. Gentrification.

All because you do something... It doesn't mean you're good at it..

nikka said Gentrification.. fukking idiot

 

[dblive]

All because you do something... It doesn't mean you're good at it..

nikka said Gentrification.. fukking idiot

My paycheck says I'm pretty good at it. 6 fig no certs. You sound like Sambo. Are you mad because I said gentrification was the reason my property value increased? It's the truth. I'm done with name calling. If you young and black getting money, get it how you live and do as you please.

 

[Truefan31]

I'm 37. Been working in finance since I was 23. I'v got My CFP and ChFC (although I don't do direct sales)
I said the house has appreciated in value 5 x's the loan amount. 40k put down on a house that cost 250k. 25k from savings and 15k taken out against my 401k...4 years ago. House recently appraised at 330k. Downtown Cincinnati Ohio. Gentrification.

I guess for your case you were able to avoid the risks involved. Good for you. Doesn't change that overall 401k loans are a bad investment with plenty of risk. That's why most planners, especially fiduciaries, don't advocate for 401k loans.

It is your money no doubt, but these are relatively simple principles that people should know.

 

[Pimp]

My paycheck says I'm pretty good at it. 6 fig no certs. You sound like Sambo. Are you mad because I said gentrification was the reason my property value increased? It's the truth. I'm done with name calling. If you young and black getting money, get it how you live and do as you please.

If you're black talking about benefiting from gentrification, you are simply a idiot.. In the end, you still lost...