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.
Be sure to run the numbers, to ensure that a 401(k) loan makes sense.
Homebuyers who borrow from their 401(k) plans can’t make additional contributions to the accounts or receive matching contributions from their employers.