No. of Recommendations: 0
If it were me, I'd probably take a $50K loan from the 401k -- with the proviso that you'd pay it back as rapidly as you can. You already know the risks of a 401k loan.
As you say, the problem with a Roth withdrawal is you can't put it back in. Leave it for emergencies.


However, are the 401K funds not considered borrowed? Won't the mortgage co have an issue with you borrowing down money?
When I did this -- well before the mortgage market meltdown -- they considered it not a loan, but me taking my own money from my own account. But they *did* consider the (required) monthly payment in my debt-to-income ratios.

Consider your Roth funds as your safety net until you have re-built non-ROTH liquidity.

Keep your [money] out of your housing to as much degree as possible.

I agree with both of these.

If Dave says you can get 10% down, no PMI, then you probably can. Sounds impossible to me, but I'm not in the field like he is.

But, with 30 yrFRM rates at 3.75%, I think it's nuts to take an ARM.

Hmmm. Took a quick look at a couple of places I've used. I used Boston, $650K, FICO 760.
Amerisave won't go above 80% LTV. 3.625% 30yrFRM
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