Can I access 401k and IRA borrowers to purchase a first home?

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First, I give you a little story. During my career I have often moved to different companies and I moved my 401k several times. Now I have two 401k plans and plan a simple IRA. I just started a new position but none of the companies. I have about $ 50,000 in a 401k and $ 8,000 in the other two. I do not think a house and I’m already on my first purchase. My girlfriend has a lot of equity from the sale of their home. We are both 40 years alt.Ich have only $ 2,000 in cash available to the Bank.Wir have recently moved to a much wider affordable, and now I can pay a mortgage but no savings for down payment another 60-10 months. I want to go, the same thing with my girlfriend or finding a way where we can share in equity. So I have several questions: 1.What is a good way, my girlfriend and I can work very well with it fairer than most people, I’m not by my hand enthusiastically 401k lately?. I wish they would have to self-directed IRA where I spend more investment opportunities. I read that index funds are the best to minimize costs, but I also want to be able, individual stocks and funds to wählen.2. Where can I do? I lose 401k on the benefits that I also have a loan on my 401k or thought of the money for the first time buyer – I can not, because I do not work for more Unternehmen.3.Can- I do this in an IRA? In other words, can I get my money transfer to an IRA, then from there, ready? 4.Will a loan officer give us a loan if I have $ 15,000 from a 401k (IRA) for the first time buyer loans and only $ 5000 with cash thanks? for your help

  1. Reply
    May 17, 2011 at 1:15 am

    My advice……….keep your hands off you 401 unless it will save your life…….Your 40 years old…… much do you have for your retirement…….you will need a million…….are you on track or on the way to the food pantry @65?

  2. Reply
    May 17, 2011 at 1:19 am

    A couple of points in response:

    You can take your old 401ks from previous employers and roll them over into an IRA. The IRA can be at a financial institution that allows individual stocks, ETFs, funds, etc., which considerably broadens your choices. (For example, you can set it up at a broker like T.D. Ameritrade.)

    Index funds give you the broadest diversification with the lowest fees. Individual stocks give you the least diversification. WIth only $ 58k I’d just leave it in indexes or in broad ETFs, but if you want to take a flyer on a stock or two, try to experiment first with a small percentage of that money.

    You may be able to arrange cash from your IRA — there are some special rules for first-time home buyers — but since you asked, I’d recommend either of these instead: (1) Just wait and accumulate more cash. It’ll be good practice for saving in the future. (2) Since your girlfriend has spare cash, split the down payment with her by signing a real official loan note to her for half, including a reasonable interest rate, and then also split the payments. And — do I need to say this? — pay the damn note back on time. That way you two are really 50-50 on the investment and there won’t be any odd math or disputes.

  3. Reply
    Gary E
    May 17, 2011 at 1:26 am

    1. You and your girl friend need a written document stating what your arrangements are and I would strongly recommend that you retain a lawyer to draw it up. They are a lot more expensive for resolving disputes than for documenting agreements. You could agree that she owns a specific percent of the property and agrees to let you buy your way to 50% at an agreed price if you agree to split house payments and costs from the beginning. The percent could be based on the ratio of you share of the down payment and the price could the be something a little more (for interest) than enough to make the shares even.

    2. You can convert your 401K plans to self directed or adviser managed IRA(s). I strongly recommend you stay with no load mutual funds in your IRAs and fool around with a few stocks when you can afford to do that outside of your retirement money.

    3. You can do it in and IRA through a wide variety of brokers and investment managers including Fidelity, Schwab, Ameritrade, etc. Check them out online.

    4. The loan officer won’t care where your down payment came from as long as you did not borrow it from some one else who won’t be on the mortgage. But I strongly recommend that you leave your retirement money alone.

  4. Reply
    May 17, 2011 at 2:13 am

    Here are many first time home buyers programs available. You may start by calling the city Housing Office in your city or the county housing officemortgage brokers or institutions that are authorize to administer the program. These agencies are normally listed on a pamphlet.

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