Posted on: 30th Dec, 2013 01:09 am
We want to buy a house and have around $8k saved as down payment but we will require around $12k as down payment for our dream home. Will it be a good idea to go for a 401k loan in this regard?
Hi Kathy,
You will have to check out whether or not your 401k loan programs offers you the facility to withdraw money for the purchase of a house. Once you know this, then only you will be able to take out a loan.
Take care
You will have to check out whether or not your 401k loan programs offers you the facility to withdraw money for the purchase of a house. Once you know this, then only you will be able to take out a loan.
Take care
Hi Kathy!
Welcome to the forums!
Apart from what Sara has said, you should also note that if you withdraw money from your 401k account before you are 59 and 1/2 years of age, then you will also have to pay a penalty.
Feel free to ask if you've further queries.
Sussane
Welcome to the forums!
Apart from what Sara has said, you should also note that if you withdraw money from your 401k account before you are 59 and 1/2 years of age, then you will also have to pay a penalty.
Feel free to ask if you've further queries.
Sussane
You need to check the penalties dear. If you incur penalties when you withdraw money before reaching the age of withdrawing the money.
By all means look into a 401k loan.
There is no penalty for BORROWING from your 401k loan.
There is no penalty for BORROWING from your 401k loan.
