Should You Use Your 401K to Fund Your Down Payment?

For many people their 401K is their biggest source of savings which is why it may be tempting to use these funds towards the down payment for a first home. According to the Down Payment Resource, only 2% of first time homebuyers use financial assistance such as down payment assistance programs! This is a stark difference to VCCDC’s 90% of borrowers who use Down Payment Assistance to purchase their first home. Many first time homebuyers don’t know about the Down Payment Assistance Programs available or think that they may not qualify.  Although using 401K funds may sound like a good idea buyers should explore all of their options before tapping into their retirement funds. To learn about VCCDC’s programs and find out if you qualify call us at 805-273-7800. Read more…

Male thinking of dollar signs