401k Loan as Bridge Loan?
Hello, I know it’s considered really bad to take a 401k loan, but given my situation, I feel like it might be a good option:
-We have to move for my job in the next 6 months.
-Both mine and wife’s jobs are very stable.
-We want to buy a house first, sell our current one second, and not interested in renting in between.
-Our current house is in good shape in a market where it is expected to sell quickly.
-For the houses we are looking at, 401k loan would be used to get our down payment up to the 20% mark, as a stand-in for some of the proceeds from the sale of our current house.
-Expected net proceeds from sale of house are over 2x the amount I would loan from 401k.
-Entire 401k loan expected to be repaid in 1-2 months, minimizing time funds are out of market.
-401k is Roth deferred so increased tax implications are non-factor.
-I would continue contributing to 401k as usual throughout whole process.
-credit scores are 800+ and only debt besides current mortgage is one car payment at $400/month.
-nowhere close to retirement age
Thoughts here?