I am trying to put together some downpayment for a house purchase. My 401K provider allows borrowing from it before retirement, as long as it is used towards purchasing primary residence.
My question is: does this count as personal debt when it comes to mortgagee application? Since I am just borrowing from my own money, I don't know if it is going to be reported on a credit enquiry. If it does not get reported, the bank does not see it, and thus does not take that into consideration when it calculates the debt to income ratio?