Re: Can savings come from 401k? or must be from "savings" account?
01-16-2013 06:19 PM
I hardly have jack now in my savings and I am waiting on my 401K check to come because after the new car and earnest money it is low but with more on the way! I get a $6,000 bonus in March every year and I am taking a $5,000 loan out on my 401K and I will be back to being comfortable again. I have run across no issues with what you are speaking about and I am about 2 weeks from closing. I know for new constructions, if you don't have the full deposit upfront, you have to show the bank how you are going to pay the remainder and they will review your deposits to make sure your payment plan is doable but if you are paying everything upfront in full when needed, like I am then I don't see any issues. I should mention that my downpayment is being rolled into a second mortgage and that may be the difference but if you are using part of your 401K for the downpayment if they ask about where is your savings for the down, just tell them it is coming from your 401K. They will ask for your latest 401K statement and can verify sufficient money is there for the down payment. Your 401K will be looked at as reserves if for savings and a downpayment if for that. The remaining balance in your 401K is looked at as reserves. Not sure if I answered your question or not.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! Last App: 4/5/13 Gardening until July 2014