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TMF Runkle wrote:

However, check to make sure your lender will let you borrow from your 401(K) for your downpayment. A few years ago I was selling a house, and the finance company killed the loan because the buyer did just that. He had a lot of other problems though, so it might not be the same for everybody.

It must depend on the situation. My wife and I just bought a house using 1/3 savings and 2/3 money borrowed from our 403(b)'s (we work for the University of California, so that's our 401(k) equivalent).

While it was a factor in determining our qualification for the mortgage, it was so only because the loans represented extra montly debt service. Since we had no other debt, it wasn't a problem.

-- Don
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