It’s rarely smart to take out a 401k loan. When you take out a 401k loan, you’re forgoing any potential gains in the market during that time.  Also, if you leave your job, you’re required to pay back your loan in full within 60 days of your leave. If you can’t do that, it’s considered an early withdrawal, so you’ll be taxed and penalized.  When considering a renovation project, it’s best to either pay cash or take out a standard installment loan through the bank.