Thinking about taking a $50,000 loan from my 401K to fund 20% downpayment for my first house in the Greater Atlanta Area. Is this a smart thing to do considering the limited uses of 401K funds? I'm in my twenties.

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"..the limited use of 401k funds..."

Therein lies the fallacy.

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At these interest rates, and market insecurity, yes. Great move in my opinion

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Only as a last case scenario

Go for less than 20%…

As long as you focus on paying yourself back right away I think it’s ok. I did it back to 2007 to avoid doing a 2nd mortgage. Fees are low and the interest you pay goes to you.

It’s a good option.

Sounds like you can’t afford to buy a home. If you must buy and renting is not an option, just do a small down payment and pay PMI. And make sure you can afford the mortgage, bills, plus maintenance plus unexpected costs. You also need an emergency fund.

I would not rush to buy.

Ask Dave Ramsey

We did this years ago, but only paid 10% down with a VA loan. Just make sure your job is stable enough that you can pay your mortgage and also pay that loan back.
I have accessed the same $50k to buy overseas properties that have since tripled in value. Each time I paid myself back with interest, and the properties I bought also tripled in value( 2 pieces of land one at $27k and another at 16k, both are now valued at $62k and $47k respectively, 3 years later) I think it was a win.

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