Posted on: 24th Sep, 2012 01:14 am
I have found a dream home in our locality and want to purchase it. However, I don’t feel that I will qualify for a loan. However, I have enough money in my 401k account. Can I use that money in 401k to buy the home?
The money in your 401k is your savings for the golden years. I don't think it will be a good option to use that money to purchase your home.
You need to check with the administrative guidelines for your 401k.
You may be able to BORROW from the 401k and/or WITHDRAW with penalty to use the money to buy a home.
401k guidelines are different. We can not tell you what your 401k guidelines are. Check with your 401k Plan Aministrator
If you BORROW the money, the Lender does not use the monthly payment you incur in the Debt Ratio calculation.
You may be able to BORROW from the 401k and/or WITHDRAW with penalty to use the money to buy a home.
401k guidelines are different. We can not tell you what your 401k guidelines are. Check with your 401k Plan Aministrator
If you BORROW the money, the Lender does not use the monthly payment you incur in the Debt Ratio calculation.
