You, as trustee/participant can take a loan/borrow from Solo 401k for any reason. The Solo 401k loan term is 5 years for general loans. The Solo 401k loan term can be more than 5 years not to exceed 15 years if used to purchase principal residence for you as trustee/participant of the Solo 401k. The interest rate for Solo 401k loan is either: A certificate deposit rate plus 2 percent or the prime rate plus 1 percent. Solo 401k Loan payments are fixed payments consisting of interest and principal Solo 401k loan rules do not allow for Interest only payments or principal payments only. The maximum Solo 401k loan amount is either 50% of account balance or maximum amount of $50K. 
Example 1: Solo 401k balance is $50K; 50% of $50K = $25K (the Solo 401k maximum loan amount) Example 2: Solo 401k balance is $150K; 50% of $150K = $75K; however, the maximum permitted Solo 401k loan amount is $50K The minimum Solo 401k loan amount is $1,000. The Solo 401k rules require the following proper Solo 401k loan documentation: Solo 401k Loan Documentation:- Solo 401k Loan Agreement
- Solo 401k Loan Application
- Solo 401k Loan Payment Amortization Schedule
You can obtain more information regarding borrowing/taking a participant loan from My Solo 401k at: http://www.mysolo401k.net/Solo401kLoan.html
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