Posted on: 28th Jul, 2008 04:29 pm
I am interesting in taking out a loan against my 403(b) in order to help finance the purchase of my first home. Will the 403(b) loan affect my ability to get a mortgage or a favorable rate?
It is most likely will affect your Debt To Income Ratio but if that is ok it should not have much effect on anything.
Hi shaantiwilliams.
Welcome to the forum.
Taking out a loan against my 403(b) may not affect your ability to get a mortgage loan but it not a good idea to take out a loan against my 403(b) as it is going to reduce the 403(b) fund and you will be paying interest on your own money. If you don't have money available for the down payment then wait a bit and try to save for the down payment and closing cost.
Feel free to ask if you have any further questions.
Best of luck,
Larry
Welcome to the forum.
Taking out a loan against my 403(b) may not affect your ability to get a mortgage loan but it not a good idea to take out a loan against my 403(b) as it is going to reduce the 403(b) fund and you will be paying interest on your own money. If you don't have money available for the down payment then wait a bit and try to save for the down payment and closing cost.
Feel free to ask if you have any further questions.
Best of luck,
Larry
