All Forum Posts by: Josh Heinen

So I did something similar, used my 401K to help pay for the downpayment of my house. You'll need to check with whoever you have your account with and see its the same, but mine offers two different max payback periods, 5 years and 15 years. From what I remember if you're going the 5-year route, you just apply for the loan online and its in your bank account a few days later, it can be used to pay down cc debt, home reno, home down payment, college tuition etc. If you're going the 15-year route, it HAS to be used for the purchase of a primary residence and you have to provide them with proof that you're purchasing a house, I think I submitted a signed offer. They then review that and choose to fund the loan or not. In both cases, the great thing about it is that you're paying yourself back the principal AND the interest over the course of the loan so by the time you pay it back you'll have quite a bit more in the account than when you started. I think the first step for you would be to talk to whoever you have your 401k with and see what they offer. A few other notes, not sure is every company is the same but I think you can only borrow half the account balance. And I would never apply for exactly half, always a few hundred bucks less than that. That way, if the account balance drops because of whatever the market did that day, and the amount you're applying for is more than half the account value, it will be rejected and you'll have to start the application process over again. 

Tips on taking out of your 401k or on how to BRRRRR?

@Harjeet Bhatti does this apply for multi family as well or just single family ?