re: Would it ever be ok to tap into 401k for a first time home purchase?

quote:

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if I can't save at least 5% toward the purchase of a home without pulling from my 401k then I'm not going to buy that home.

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What if they saved up 4 percent already and just need to take out 1 percent plus closing costs (assuming they can't get them all paid by the seller).

I would be hesitant to suggest that anyone take out the entire down payment, plus all closing costs, out of a 401K. But using it as a small bridge loan for a portion can make some sense in some situations (very few, but not none).

Are we talking about a pull out or a loan?


Two very different situations.

taking out a loan from your 401k might be alright but not withdrawing from it.