How can I use my 401k as a downpayment?
There are several ways that you can use your 401k to assist you in the purchase of a home. You can withdraw funds from account to use as cash down (although there are typically significant tax implications), take a loan against your 401k for the down payment, or leave money in the account and use it in lieu of cash reserves.
For first time home-buyers, many times you can avoid be penalized for withdrawing your 401k money to use as a down payment on your first home. You will still have to pay taxes on this money, but you may be able to avoid the penalty fee for early withdraw.
You need more information please contact Cal Home Loansat either California Home Loans or at 888-275-6788.
If you are concerned about withdrawing savings from your 401(k) you should consider 100% financing. The rate and terms may appear less attractive but you must also factor in the cost of penalties for early withdrawal of your 401(k).
