Can I have 2 principal residence loans

[Guest chris4013]

or would I need to consolidate the loan used for the first residence into the loan to purchase the new residence?

[Tom Poje]

I think (emphasis on think) the only restrictions would be: max outstanding balance of all loans = 50,000

and number of loans limited to loan provisions - e.g. does plan even allow for mre than one loan.

[stephen]

FWIW, I agree with Tom.

[namealreadyinuse]

Are you going to end up with two houses or one? It sounds like you may be selling a house that you borrowed to purchase and want to borrow more to buy a replacement. You should confirm that the terms of your loan don't make the home extra collateral for the loan or that the terms are payable on sale of the home. From IRC perspective, there shouldn't be anything wrong with a second personal residence loan if the plan and loan documents don't prohibit it.

[Guest chris4013]

New set of facts: The second principle loan is to pay off husband (soon to be divorced). I don't have a divorce decree that would give title with 401k funds. All I have is an interspousal transfer deed, already executed, giving her full title of the original property.

Can she take out another 10 year loan for what she claims is to pay the husband back for full title?