Like the title says, I’m trying to refinance a new investment property i have, I have about 80k in my 401k, 25k in my bank, but I need 28k for reserves. Can I use my 401k as my reserves?
You should be able to use a portion if you can show that you have the ability to pull funds out.
Denver said:
You should be able to use a portion if you can show that you have the ability to pull funds out.
Sweet, how do you prove that? I know I can pull it out if needed
Denver said:
You should be able to use a portion if you can show that you have the ability to pull funds out.
Sweet, how do you prove that? I know I can pull it out if needed
The lender will need the terms of withdrawal. If you work with an advisor, they should be able to pull that up for you - if you’re just doing it solo through one of the platforms I’m sure there’s a place to download it. You don’t need to pull it out to show reserves, lender just needs to know that it’s there and you have the ability to get it out if needed
Denver said:
You should be able to use a portion if you can show that you have the ability to pull funds out.
Sweet, how do you prove that? I know I can pull it out if needed
Yes you can I think you’ll only be able to use 50% of the account or maybe 75%. They factor in the taxes you’ll pay in the amount they give you credit for as reserves
The company you have your 401(k) with should be able to provide documentation showing that you can pull funds from the account.
Yes. Provide terms of withdrawal from plan. Also you can only use 60% of total balance for qualification unless you are 59.5 or older.