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I LIVE IN AREA 33165 I NEED A HOME BUYER IM GETTING THE LOAN FROM MY RETIREMENT PLANT PLANT

I HAVE CHOOSEN THE HOME I WANT BUT I DONT KNOW WHERE TO STARD
  • February 24 2012 - Miami
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Answers (4)

Your ability to qualify for the loan to buy the home with the money from your retirement plan (I'm guessing it is a 401k plan) will include the payment to repay that loan. However, your repayment is really a new contribution to your retirement plan on a pre-tax basis. Your choice to borrow from your retirement plan may be your best option for getting a down-payment!

If you can transfer your retirement funds to an IRA (called an "in service withdrawal"), you can then withdraw the funds from the IRA and use it for 60 days; if you put it back within 60 days, there will be no penalty or tax consequences.

Get professional help from your tax advisor, Realtor, mortgage lender, and financial advisor. If you think it will cost you additional money to get the right advice and if you think it is complicated, you are mistaken. Every advisor will discuss your needs for free. If you decide to use their services, they will have disclosed to you up-front what their fees are.

You will not have to pay a Realtor anything as a buyer. Your mortgage originator will tell you what the financing costs are (they have to legally). An attorney will tell you also. A financial advisor or tax advisor also will tell you before you decide to use their services.

Now I see why you don't know where to get started!

Call your mortgage professional!


  • February 26 2012
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Hello Mr. Lopez,

As indicated here already you will want to e certain what the procedures are for withdrawing the funds from your retirement plan, and what the requirements and repayment methods are. You will want to make sure what if any tax implications this may have before you withdraw the funds. If the funds you are using is just for downpayment and closing costs and you will require a mortgage for the balance of the purchase you will want to get a loan preapproval. You will want to discuss this with your loan officer so that he/she can guide you the loan requirements with that as well. Once you have the preapproval, then you can get with a realtor that can show you this home or others that may be possibilites for you. Keep in mind that having a preapproval is needed when making an offer on a home. Good luck with your search, if you have any additional questions please feel free to contact me.

Lila Lopez
RE/MAX Advance Realty
[phone removed by Zillow moderator]
  • February 26 2012
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You need to get with a realtor to see the home and place an offer.  Expect to have to show the retirement plan balance as proof that you are able to buy.  Keep in mind that some distributions from retirement palns are taxed and have penalties.  You need to find out  what the penalty is so you can plan for that too.
  • February 25 2012
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Hello Jose,

Why not do a search on Zillow for agents in that area?  I did a quick search and these agents looked like they'd be able to help you get your new home.

http://www.zillow.com/profile/Andy-Tripodi/
http://www.zillow.com/profile/Jesus-Pazmino/
http://www.zillow.com/profile/Renny-Plus-Seve/

Good Luck!
  • February 24 2012
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