: Because you are borrowing from yourself, these loans do not require a credit check and typically do not impact your debt-to-income (DTI) ratio for mortgage qualification. Critical Risks and Considerations
Most employer-sponsored plans allow you to take a 401(k) loan specifically for the purchase of a . Unlike a withdrawal, a loan is not initially taxed and does not trigger the 10% early withdrawal penalty. Key Rules and Limits (As of 2026)
: Standard 401(k) loans must be repaid within five years. However, for a primary home purchase, many plans allow for extended terms of 10 to 15 years .