Hello Bigger pockets, 

I'm trying to strategize on how to save for a house and understand my options. However, I'm 4 months away, and every lender I try wants me to run a full application.  I'm wondering if anyone out here can provide some basic guidance in this scenario? 

Stats: Credit Score 830. I own 2 other rental properties, one paid in full, the other with a small cash-out refi attached to it.  My job offers 401k loans for personal home.

Say the house cost $400,000 with taxes around 10,000.

I currently have 35K saved for a down payment, with 4 months left to save further. I can get it to 43K by then.

Several years ago, I borrowed 401K loan for one of my rental properties roof…about $6000 at 4.75%. The cost is 210/mo.

I have the opportunity to pay this loan, and borrow 20,000 for 15 years at 6.5%.The cost is 175/mo.  This easily gets my downpayment to 45K.

Im trying to figure out what is the best option for us:

20K down (5%) + PMI

VS

40K down (9%) by borrowing 20K 401K loan.

VS

40k Cash-Out-Refinance on my rental property. 

Im not fully understanding the pros and cons of each. 

For example, the Cash-Out loan is tax deductible, but comes with larger closing costs. 

The risk is that the properties do not appreciate much and are low cost. I dont know if I want to be in that area for the long haul. 

The 401K loan locks me into the company for 15 years, and needs to be paid if I move. Im not worried about the retirement fund related risks.

Or, I can simply pay the 6k loan, and pay 5% down and the bigger PMI.

Anyone care to help provide numbers, or guidance on this one?

Thanks