401k (loan, loan, bank, cash)

[topher5150]

I am looking at buy a HUD/Repo house, don't really have the cash for a down payment, but I have around $20,000 in my 401k and was thinking about using some of the that money for a down payment.

[dubyanumberone]

Many workplaces allow you to take a loan out against your 401k balance. There is interest but you pay the "interest" back to yourself. Ask your HR department about it.

The downside is obviously that your account balance is smaller and if the market is good you will make less.

[AMCBL]

The monthly repayment of your 401k will also count towards your debt to income ratio, so the bank will want to see your 401k terms of repayment.