Is it really OK to use your 401(k) to buy a home?

Let’s take a look at the pros, cons, and important considerations  that can help prospective homebuyers make a more informed decision about  using funds from a 401(k) to buy a home.

Can You Use a 401(k) to Buy a House?

If you’re a first-time home buyer, and your employer plan allows it, you can use your 401(k) to help buy a house.

Generally, home buyers who want to use their 401(k) funds to finance a  real estate transaction can borrow up to 50% of their vested balance.

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How Much of Your 401(k) Can Be Used For Home Purchase?

Be sure to run the numbers, to ensure that a 401(k) loan makes sense.

Withdrawal limits

Homebuyers who borrow from their 401(k) plans can’t make additional  contributions to the accounts or receive matching contributions from  their employers.

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Lost contributions


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