How to Purchase a Home Using a 401(k)

Video Transcript

"My name is Philip Beningoso, I'm an investment professional, and I'm going to discussing, how to purchase a home using your 401K. Now it's possible to use your 401K to purchase a home, as long as you can prove that it will cost less in the long run to use your existing 401K equity than face many alternatives, such as, mortgage insurance, or a second mortgage, or a disadvantage mortgage terms. The Internal Revenue Service makes it very difficult, and in all but impossible to complete the maneuver without facing stiff penalties and taxes. Let me take you through a few quick steps to make this process simpler for you. Step 1, finance only a first home using your 401K money; 2, determine how much money you need to take from your 401K, and limit your withdraw to only the amount you require; 3, is to approach your financial institution about tapping into our 401K savings. Remember to be cognizant of all the penalties that you can face from the IRS; 4, keep some alternatives in mind, your employer might extend you a loan against your 401K account, and that can be a different option; 5, payoff your credit cards, reduce your debt, and reapply for mortgage before you commit to taking money from your 401K. Any information provided here, may not be suitable for everyone, and should not be considered an individualized recommendation or personalized investment advice. My name is Philip Beningoso, and I'm an investment professional."