The Educated HomeBuyer | First Time Home Buyer Tips, Mortgage Rates & Housing Market Updates

Using Your 401k To Buy A House: The $380,000 Mistake - EP239

September 14, 2026·22 min
Episode Description from the Publisher

Should you use your 401(k) to buy a house? For first-time homebuyers struggling to save enough for a down payment and closing costs, your retirement account may be an option, but how you access that money can make a massive difference.In this episode, we break down how first-time homebuyers can use a 401(k), 403(b), TSP, traditional IRA, or Roth IRA when buying a home. We explain the difference between taking a 401(k) loan and making an early withdrawal, including the potential taxes, penalties, repayment requirements, and impact on your long-term retirement savings. We also walk through the math behind a potential $380,000 mistake and explain why borrowing from your 401(k) may be very different from simply cashing it out.If you're trying to buy your first home but don't have enough money saved for the down payment, the answer isn't automatically to raid your retirement account or give up on buying altogether. The key is understanding your options, knowing how much cash you actually need to close, and figuring out whether using retirement funds fits into your bigger financial picture.Start Here 👇🏻✅ Are you Ready To Become A Homeowner:https://www.buyrightborrowsmart.com/quiz✅ Start your stress-free journey today:http://www.buyrightborrowsmart.com/start

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