re: Using your 401k to buy a house

Thanks for the help guys. When I do the math and look at the penalties it's crazy to think that the 40 k may cost me 40 k to use it in the long run. I look at it as money that I wouldn't see or use for 30 years but the interest over that time would be helpful when I hang up my work boots.
There are a few guys at work who did use there 401k to buy and they are both hurting financially today. I look at it as the ace in the hole but I guess I should just forget about using it now to have later.