Updated over 7 years ago on . Most recent reply
401k loan for property purchase then refi?
I am looking to purchase a property cash by using my 401k loan to finance the purchase. i also have 50k in savings from my last house flip to fund the renovations. I am looking into using my 401k to buy the house outright as the owner has gutted the property and i cannot get a conventional loan. the bank has stated i could do a commecial loan for a short period but there would be closing cost. Then i could refi once i get the house in a livable condition. However since i have the 401k loan option should i just purchase the house cash and wait 6 months to refi? Its seems silly to me to process 2 loans in a short period. I generally would never touch my 401k but if i can pay it back in 3-6 months would this be a viable option? I would love to hear any opinions on this subject as i keep going back and forth with this and need to make a decision this week. Thank you all!