Using a 401(k) for Buying a House

Making markets is possible with education...

Author

Todd Ballenger
June 14, 2023

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“A 401(k) can be a source of funds for buying a new house… even a 401(condo) may work…”

A Borrow Smart Concept
Using a 401(k) for Buying a House

I was recently talking to an acquaintance who had been wanting to buy a house... Something became available for them in their market, but they didn't have the 20% down payment they wanted to put down to avoid MI and get their payment at 6.75% to work...

We discussed using their 401(k) at her place of work since she had a larger balance. They borrowed $30,000 at about 7% and will pay it back over 5 years to make the deal work.

If you haven't considered this before, as a 'hack' for new home buyers, here are a few key aspects to consider.

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They have a growing family and didn't want to miss an opportunity to buy now.

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Here is the presentation: 

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