Valued Contributor
Posts: 1,115
Registered: ‎10-31-2011
Re: Can savings come from 401k? or must be from "savings" account?

You can take a loan from your 401k tax and penalty free for down payment/ closing for a mortgage... But it is important that you pay it back or you will be penalized. The loan wont count against your DTI since it is a loan against yourself.