Profile picture for user62675121

Would a lender approve me for a loan if I borrowed the down payment from my retirement account?

This is a divorce situation.  The primary residence needs to be sold.  My thought was to borrow from my retirement account, find a foreclosure to buy that will accommodate my needs.  Once we are out of the house we could do a little fixing up and then sell.  I would use my portion to repay my loan from my retirement account.
  • December 12 2012 - US
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Answers (5)

Profile picture for Brandon97
Well, in such doubtful situations I think that it's better to apply to a mortgage specialist or a financial advisor. Mostly loan applications are approved or rejected regards to the state of your credit score, but there are also some details which are also important. Every situation is different, [Hotlink removed by Zillow moderator. Please see our Good Neighbor Policy for more information.]
  • December 17 2012
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Profile picture for Bert Pope
This worries me. Is your divorce settled? your retirement is protected.
Please, just work on selling the house quickly, get that price down and get on with your life.
Taking that money out of your retirement account and paying it back sounds good, but if it is not back in a timely manner you will have a large taxable consequence. Plus the other property could become an asset to deal with in the divorce.
Get agressive with the price of your home together and move on down the road, you both will benefit from a quick sale.
Good Luck.
  • December 12 2012
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Please speak with a Mortgage Professional before you move any money.
  • December 12 2012
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Profile picture for B Mike West
You will have to select a local loan consultant and discuss the particulars of your financial situation.  In order to get loan approval, you will have to have enough income to make the payments on your existing home and the home you intend to buy.  Much depends on other aspects of your situation and the lender you try to gt the loan through.
  • December 12 2012
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Profile picture for Ofe Polack
You need to discuss your financial profile with a mortgage broker.
  • December 12 2012
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