“Using Funds from a 401K Account”
Good morning Joe,
As you’re aware we have an accepted offer on a new home. We are just waiting for Nicks quote on the work; Just a couple of questions about the loan/process. Can I use 401k money to make the down payment t on the property? And can we move in during the repairs or do we need to wait till everything is finished to move in?
Thank you, Dan
The simple answer is it depends on the terms of the particular account. Many allow for withdrawal or the ability to borrow against these funds.
It is important to know if withdrawing these funds it will cause a tax consequence for an early withdrawal. This is not the case if someone borrows against the balance in the account and the payment does not count as part of the debt ratio as the person is borrowing from themselves.
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Joe Petrowsky, NMLS #6869
Right Trac Financial Group, Inc. NMLS #2709
110 Main St.
Manchester, Ct. 06042
Office: 860 647-7701 x116
Fax: 860 647-8940
Cell: 860 836-9294
Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.
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