Borrowing from a 403(b) is like taking a skeleton key to your future to unlock a front door today. For educators and nonprofit workers, this option can be the bridge between being a perpetual renter and a first-time homeowner, but it is a bridge built with significant structural risks.
While most general 403(b) loans require repayment within five years, the IRS often allows this term to be extended—sometimes up to —specifically if the funds are used to purchase a primary residence . Essay: The Double-Edged Key to Homeownership can i borrow from my 403b to buy a house
If your plan permits it, you can typically borrow up to , with a maximum cap of $50,000 . Unlike a standard personal loan, the interest you pay on a 403(b) loan goes back into your own account rather than to a bank. Borrowing from a 403(b) is like taking a
The Logistics of Borrowing