05/08/2026
Your 401k might be the reason you become a homeowner sooner than you think.
A lot of people assume they need years and years to save for a down payment, but if you have money sitting in a 401k, you may already have options available to you.
Depending on your situation, you may be able to:�
- Borrow against your 401k and pay yourself the interest back�
- Use a hardship withdrawal for a first home purchase without the additional 10% early withdrawal penalty�
- Combine a low down payment loan program with seller-paid closing costs
For example, on a $400,000 home:�
- 3% down is around $12,000�
- Some buyers may only need enough for the down payment if closing costs are negotiated into the contract
There are pros and cons to accessing retirement funds, and every situation is different. You still need to consider taxes, repayment terms, long-term retirement goals, and what loan program makes the most sense for you.
But the biggest takeaway is this:
A lot of future homeowners are closer than they realize.
Questions about buying your first home or using retirement funds for a down payment?
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