Do many places accept a mortgage down payment from a 401K account?

Asked by Vincent Grillo, Forest Hill, TX Tue Feb 5, 2013

I have a 401K and have heard places will accept these as part of down payment.

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Guy Gimenez, Agent, Austin, TX
Tue Feb 5, 2013
Depends on who you mean by "places". It's been my experience that lenders simply need to source the down payment funds and if you're using money from your 401K, that is taken care of. You should contact a competent mortgage banker for clarification on this though.

If you mean a seller, well, a seller could care less where your funds come from as long as you have proven to the lender that the funds are on deposit.
1 vote
Dallas Texas, Agent, Dallas, TN
Tue Feb 5, 2013
You need direct all your questions to a mortgage broker expert who would handle entire financial file for you to qualify for a loan

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Tommy Burris, Mortgage Broker Or Lender, Baton Rouge, LA
Wed Feb 6, 2013
Underwriting guidelines allow you to cash out money from the 401K for down payment.
I don't recommend this.
Another option is to take out a loan from the 401K.... And even though you are paying it back.... It does NOT count as a payment against your debt to income ratios!!

I do these all of the time.



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