You should talk to a lender about this question.
Call: Rita Tsalyuk
Direct Mortgage Solutions
She can answer all of your questions. Tell her that I referred you.
Keller Williams - DTC
The Besser Choice in Real Estate!
Summit Mortgage Denver
However, remember you could look to the likes of minimum down payment ranges of 3.5-5% for either FHA or conventional loans. This could be an alternative if you find the 401K option to be be favorable. Or you could even look to community down payment assistance options such as CHFA< CHAC<HOAP<NEWSED.....
I think that this would be a question for:
Your lender- is it possible
Your Accountant-what are the penalties
Your financial planner- is this a finacially sound decision
If this makes sense for you, give m e call!
Keller Williams Realty Success
Taking a loan on your 401k can seem like a good idea, but it has some risks. The worst being, that if you lose your job or take another job, the leftover amount is due in a lump sum or else it's treated like a withdrawal and you get dinged for the 40% again.
The second thing is you can't make extra payments to pay it off early. You can gather up the entire amount and pay it off but not little by little.
So with those things said you have to decide if that is a risk you want to take.
Personal Real Estate Consultant
We are at or near the bottom of a market cycle - from a price perspective, and it is a fabulous time to buy.
Much will also depend on where you are in your life cycle. If you are in your 20's you have lots of time to continue to put away money for retirement. If you are in your 50's - well - it may not be such a good idea to borrow.
Talk to a financial advisor. If you don't have one - get some recommendations. Buy an hour of their time and see what will make the most sense for you!