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Down Payment

Can I use a 401k for a down payment?

Answered by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker

Yes. You can take a 401(k) loan or a withdrawal to fund a down payment. A 401(k) loan is often preferred because you repay yourself and it doesn't trigger taxes or penalties.

A withdrawal may incur taxes and penalties, so weigh it carefully. The 401(k) loan payment counts in your DTI. We'll model how using retirement funds affects your approval.

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