Well, let’s go over today’s real estate word of the day, and that is going to be 401K and 403 B loan. Yes, the loan you can take against it.
All right. So 401K or four or three B loan, some administrators of 401K or 403 B plans allow for loans against the moneys you have accumulated in these plans. Loans against 401k plans are an acceptable source of down payment for most types of loans. Wow.
Mm hmm. So loans for mortgages. Right. And so what you can do is you borrow against your 401k, pull the money out, but when you borrow against it, then you have to repay it. And then there’s not a tax consequence. So there’s different rules on it with how much you can borrow and what you can do and how it has to be repaid. But then you put it back in and you don’t lose the tax advantages of the fact that it was in there.
So if you have a borrower or a client who’s looking to take advantage of it, looking to get into today’s market, but they maybe don’t have enough money or they need additional down payment and they have that, that could be a great source.
Maybe they want to buy a home or an investment Or a third or a fourth. You knows they can tap into that. Great.