What type of loan can be an acceptable source of down payment for most types of loans?

A 401k or 403b loan can be an acceptable source of down payment for most types of loans because these loans are secured against your retirement savings. When you borrow from your own 401k or 403b, you are essentially using your own money, which is considered a relatively low-risk option by lenders. Most mortgage programs allow this because the borrower's contributions, along with the loan borrowed, are seen as part of their financial stability.

Additionally, repayments of 401k or 403b loans usually come from the borrower's paycheck, which acts as a safeguard for lenders, indicating a strong commitment to repaying the funds. This characteristic makes these types of loans more favorable compared to other options like personal loans or credit card advances, which can carry higher interest rates and may signal financial distress to lenders.

The other options do not typically meet the lending criteria for down payments. Home equity loans are usually contingent upon sufficient equity in another property. Personal loans may not have the same perceived reliability or stability as a 401k or 403b loan. Credit card advances can also be problematic due to high interest rates and the risk they pose to a borrower's credit profile.