Valued Contributor
Posts: 1,115
Registered: ‎10-31-2011
Re: Why can't I use money I set aside for Closing?

You can use money from 401k for down payment or closing even though if you borrow from its a "loan" but not in the sense as your taking on new debt since its already your money. We had a situation where my wife was unemployed before closing and I put a few thousand dollars cash in the bank to cover expenses and when it came to closing the funds were unverifiable so even though I had plenty of money in my account I only made it to closing by about $20 bucks but you should be fine just don't touch your account and NEVER DEPOSIT CASH. Hope this helps