Trulia Miami, Home Buyer in Miami, FL

Is it advisable to use funds in a 401K as a down payment?

Asked by Trulia Miami, Miami, FL Fri May 3, 2013

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Time to read 'Rich Dad, Poor Dad" by Roberto Kyosaki. Does it make you money or does it become a liability?
0 votes Thank Flag Link Tue May 7, 2013
A few things to consider: How long before you retire? Are you able to pay it back along with a new house payment? How long are they giving you to pay it back? How much are the taxes and penalties? Are you borrowing 3.5% for FHA loan or 20% for Conventional?

Blanca Dover, REALTOR
Century21 Hometown Realty

Cell: 805-427-5646

Web Reference:
0 votes Thank Flag Link Mon May 6, 2013
Using funds you have planned for your retirement it's not always the best approach, however, if the opportunity arises of becoming a homeowner which is anybody's most important financial decision and these are the only funds available I would advise a friend to do it.
0 votes Thank Flag Link Fri May 3, 2013
I am working with a woman now whose son is taking money out of his 401K at no penalty
so she can have a down payment on a small condo. She will gradually pay him back. This
is a fairly new program.

Dee Penna Agent Crawford Group Sotheby's
0 votes Thank Flag Link Fri May 3, 2013
Money in 401K plans should stay there until the holder retires, but the IRS allows "hardship withdrawals". One acceptable hardship is making a down payment in connection with purchase of your primary residence.

A withdrawal is very costly, however. The cost is the earnings you forgo on the money withdrawn, plus taxes and penalties on the amount withdrawn, which must be paid in the year of withdrawal. The taxes and penalties are a crusher, so avoid withdrawals if at all possible'
0 votes Thank Flag Link Fri May 3, 2013
Dear Customer,

Is a pleasure to assist you.

My recommendation, When you try to make a business make sure who are the person that you are trusting, is he/she serious and honest person? when you are planning a deal be alert. Is very important a Specialist in Real Estate and Mortgage Broker to you transaction.

All payment or transaction will be write on the contract. The step to follow and the finish process.

Please, do not hesitate in contact me if you need specific details.

Best Regards & Good luck!

Loreley Fajer

Luxury Real Estate Specialist

Brilliance Realty Group

1395 Brickell Ave #690

Miami, FL 33131

Office: (305) 377-9690

Cell. 786 972 6773

0 votes Thank Flag Link Fri May 3, 2013
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