The downside is that it sounds like you haven't reviewed the rules for your plans 401k loans. The max allowed by law is $50k.
From the IRS:
The maximum amount that the plan can permit as a loan is (1) the greater of $10,000 or 50% of your vested account balance, or (2) $50,000, whichever is less.
Yes! This. I knew there was a something I was missing, I just couldn't figure out what. There is just over $90k in there so we can really only borrow $45k.
However, more importantly, my husband is no longer at the job for this 401k so it looks like we can't borrow from it at all. I didn't even know that was a question I needed to ask, you know what I mean?
...and I'm sick to death of renting.
Sorry, this is a terrible reason. Maybe the worst reason of all. Maybe even approaching facepunch territory. It sounds like you're saying you want something that you can't afford. This is the wrong place to seek affirmation, if that's the case. Better to seek out loan programs that allow lower down payments. It's fine if you do that, as long as you promise not to whinge about paying MI.
Borrowing against my 401k is by far the thing I regret most. I made a killing with the $6k I borrowed, but I felt trapped in my job until I got that sucker paid off. Hated that feeling. Hated it.
Yes, Dicey, I am entirely aware of the facepunch aspect, which is why I said to ignore it. Definitely not seeking affirmation from anyone. My choice, which I am going into with eyes wide open. This is preliminary research for where to find the money. If it didn't seem smart, we wouldn't use it.
