• AwkwardLookMonkeyPuppet@lemmy.world
    link
    fedilink
    English
    arrow-up
    35
    arrow-down
    1
    ·
    edit-2
    8 months ago

    You can use $10k from your 401k for a down payment on a house with zero penalty. If you’re married, then your spouse can do the same. So now you have $20k for a house down payment! With an FHA loan you can buy with as little as 3.5% down, which your $20k should cover. Weee!

    • Deceptichum@sh.itjust.works
      link
      fedilink
      English
      arrow-up
      11
      ·
      8 months ago

      Heh, here in Australia I’d need over $100,000 for a down payment.

      Many are 20% here, so really I’d need over $200,000 just to make the initial payment.

      • AwkwardLookMonkeyPuppet@lemmy.world
        link
        fedilink
        English
        arrow-up
        8
        ·
        8 months ago

        You need that here in the USA too, but with an FHA loan, or a first time buyer program on a conventional loan the percentage needed is reduced. Although they hit you with some pretty hefty fees when you take advantage of those programs. The FHA charges an up-front fee, and conventional loans hit you with PMI which equates to hundreds of dollars per month.

    • cm0002@lemmy.world
      link
      fedilink
      English
      arrow-up
      2
      arrow-down
      1
      ·
      8 months ago

      Why even bother with a down payment, lots of loan options out there for 0%

      • EtherWhack@lemmy.world
        link
        fedilink
        English
        arrow-up
        6
        ·
        8 months ago

        In most cases, it’s better to save up for a down-payment to cut off a chunk from your loan along with the portion of interest with it. You also tend to be able have loans with better options available to you.