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Borrow from 401k for down payment on rental property?
Make sure you can really do what you plan on doing: Look at the maximum loan length and the maximum loan amount.   From the IRS- retirement plans faqs regarding loans A qualified plan may, but is not required to provide for loans. If a   plan provides for loans, the plan may limit the amount that can be   taken as a loan. 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 ... A plan that provides for loans must specify the procedures for   applying for a loan and the repayment terms for the loan. Repayment of   the loan must occur within 5 years, and payments must be made in   substantially equal payments that include principal and interest and   that are paid at least quarterly.  Loan repayments are not plan   contributions. The referenced documents also discuss the option regarding multiple loans, and the maximum amount of all active and recent loans  Having a 401K loan will still count against the maximum amount of monthly payments you can afford. Also check the interest rate, and yes they required to charge interest.  Some companies will not allow you to make contributions to a 401K while you have an outstanding loan. If that is true with your company then you will miss out on the matching funds.