Mortgage with retirement / stock account

[Sabrian31487]

Good evening,
Need some insight. I'm working with Wells Fargo at moment in the pre approval process and want to make sure that as a first time home buyer I will be able to use the money in my retirement account to fund down payment and closing costs. In my 401k I only have about 6000. In my retirement/stock account (which is what I want to use) I have over 40000. Thanks for all information

[Anonymous]

As long as the terms of withdrawal state that you are eligible, you are able to withdraw or a take a loan to help fund downpayment and closing costs. Just make sure to check tax implications if you withdraw or loan limitations if you go the loan route.

[Sabrian31487]

Greatly appreciate your answer. Thank you

[DallasLoanGuy]

just paper trail the liquidation of funds. no problem, this is done all of the time

[ezdriver]

Consult with your loan officer before making any moves. Before talking to a loan officer, be sure to know the withdrawal rules/restrictions on your retirement account. Many have limitations on how much one can withdraw and how best to withdraw it depending on your age. Good luck with you home purchase pursuit.

[DallasLoanGuy]

ez is right.

also tax considerations.... ask your cpa

[Anonymous]

You can do a one time penalty free withdrawal for a new home. The better thing about a withdrawal vs a loan is that you don't have to pay it back (to yourself) and with a 401k, generally you can only borrow up to 50% of the available balance. But I agree with everyone, call the 401k rep to understand the rules in your case.

[mynameainttracy]

The limit for a penalty free liquidation is $10k max towards the home. You must also be considered a first time home buyer. That is the 3 year no ownership kind of first time buyer.

Let me clarify...You can take out whatever but only the 10k will not be penalized.

AND...check the timelines. I believe you have to use the money on the purchase within like 90 days of withdrawing it. Really not sure what the deal was on this one but we had to pay attention when we cashed a fund out to use on our home.