I am allowed to take money from my retirement account for down payment and closing costs (withdraw). But am I allowed to borrow the money from the account?
I know lenders will be different, but what’s the GENERAL rule?
Thanks. I know I can question my mortgage broker tomorrow, but this is really bothering me now!
The ROTH ira has a small known fact.
You can take out the money without the 10% penalty before the 5 year period if you are buying your first home.
You’ll need a special tax form.
If you borrow money from your 401K that will be viewed as a debt and it will reduce the available monthly mortgage payment you will qualify for.
And yes, you can make “hardship” loans to take money out of your 401K.
Some employers will in fact question for “hardship” proof – a house may not be enough.
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