Making use of a beneficial 401(k) to possess a home Deposit In this article Borrowing From the 401(k) Withdrawing Money from Your 401(k) And therefore Option If you do? Almost every other Advance payment Financing Choice Buying a property is a huge area of the Western Dream. But rescuing sufficient money to own a deposit is usually the biggest obstacle to have first-day homebuyers. With regards to the Federal Association away from Real estate professionals, the typical down-payment on the property is about eleven% of the price. That it translates to $33,100000 on the good $three hundred,100 home loan. 11 % accumulates so you can too much currency. And additionally, might often have to spend 25% to possess closing costs. The total amount you devote down will help influence your monthly premiums, so it’s an important factor to own homeowners. One method you to some people used to fund its off payments is to try to utilize retirement levels, instance an excellent 401(k). There are two how to use a good 401(k) to finance a property buy: borrow of it and you will withdraw money from it.