Can You Use Your 401k to Buy a House? Pros and Cons Explained - Total Mortgage Blog
Can You Use Your 401k to Buy a House? Pros and Cons Explained - Total Mortgage Blog
Abstract
Even if you could access your 401k to buy a house, does that mean you should? In this article, we will explore the answer to the question, 'Can I use my 401k to buy a house" and what will happen if you do. Can You Use Your 401k to Buy a House? The short answer is yes, it is possible to use your 401k to help you with a major financial event, including buying a house. If the plan allows it, there are two ways in which you could access your 401k funds to buy a house: taking out a loan or making a withdrawal. Withdrawing 401k The other option for buying a house with a 401k is to withdraw the funds from your retirement savings. Disadvantages of Using 401k to Purchase a Home While there are advantages to using your 401k to buy a house, not least of which includes homeownership, you might want to exhaust all your other options first. That's because there are downsides to using your 401k for a real estate deal too, which you should be aware of so there are no surprises down the road. By taking money out of your 401k plan to buy a house, you could potentially miss out on profits in the financial markets. Alternatives to Using 401k to Buy a House Before you use your 401k to buy a house, you might want to consider other alternatives if they are viable to you.