401k loan for post-closing liquidity
Started by anonymous
over 8 years ago
Discussion about
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Good idea or bad idea? If you have a stable job, can put 20% down, can easily pay for the monthlies (<25% DTI) but don't have 12 months cash on hand after closing, does it make sense to take out a 401k loan and pay it back shortly after closing? I know 401k loans are taboo but I don't see a lot of downside. The "double taxation" phenomenon is a proven myth -- there's no tax implication in taking out the loan. Is this someone co-ops will see and assume you're desperate or make poor financial decisions?