Moneyhungri, Both Buyer and Seller in Fort Lauderdale, FL

Should I borrow against my 401k for a downpayment on a house?

Asked by Moneyhungri, Fort Lauderdale, FL Mon Apr 8, 2013

Help the community by answering this question:


This is a great incentive offered by the 401k plan . Why not use it? I believe you may borrow up to $10,000.00 for the purchase of your first home. It would be untaxed and with no penalties. I would suggest calling your 401k plan to confirm this information. I recently sold a home in Sunrise, FL where my buyers borrowed against their 401k and were delighted that they had that source and incentive available to them. Best Wishes! Maribel - Coldwell Banker Residential Real Estate : 954-268-3975.
0 votes Thank Flag Link Tue Apr 9, 2013
V. being a renter and missing out of this awesome time to buy real estate? I say yes!

Borrower against your 401k and pay yourself back at a 6% rate

Buy a home that is appreciating at 6% TAX FREE after homesteading for 2 yrs (250k for single person 500k married)

Not counting the interest write off, etc.

Shall I go on?

0 votes Thank Flag Link Mon Apr 8, 2013
you need a CPA or a lawyer to answer this, not a Realtor. You can invest in real estate via a 401 and/or a IRA without borrowing, but you will need advise on how to do this.
0 votes Thank Flag Link Mon Apr 8, 2013
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