There are a few other borrowing options that may be available to you. Consider any of the following options carefully and always discuss them with a financial advisor, as they can carry significant risk.    

Home Equity Loans

Approval for a home equity loan is based on several factors including credit history, debt-to-income ratio and home equity. This loan may have tax-deductible interest. Be sure to compare this interest rate to the rate you qualify for if you apply for a private loan and determine If it leaves you with any funds for emergencies or other opportunities. The amount you can borrow is limited only by your home equity, debt-to-income ratio and credit-worthiness. Home equity loans don’t allow for deferment during unemployment or economic hardship.     

Investments

Cashing in investments may seem more attractive than borrowing. However, this may increase your income tax liability with additional capital gains. By cashing in investments, you lose any future returns on that money, which in turn may affect the money you’ll need for retirement. 

401(k)

You may be able to borrow against your 401(k) and pay yourself back with interest this way. This may affect the money you’ll need for retirement. Additionally, the contributions you made to your 401(k) were in pretax dollars, but if you take out a loan, you’ll be paying yourself back in after-tax dollars. This means you'll need to contribute more when you pay yourself back because some of it will be taken out for taxes. Some plans also require employees who lose their jobs to pay back the 401(k) loan immediately.