@blecap1 I for one think this is a great move! Being in control of your home and surroundings increases your happiness and pride in your home and yourself. And owning a home is key to financial security and independence. It’s one of the steps in the Richest Man in Babylon.
Yes, the money will grow in a 401 k, but you won’t get the utility of the funds for years.
Meanwhile, a smart home investment will also grow equity for you and keep your payment stable so you can plan for your future.
@blecap1 If you have a 403B your employment might make you count as a “good neighbor” sometimes there’s houses on the HUD that good neighbors can get for half the cost. Down side is usually it’s in areas the state determines needs help, but that’ll mean it’ll be cheaper and within your means.
@blecap1 You could have instead worked on building a decent credit score, and applying for a FHA loan, with a super low down payment. I think I plunked down around 6k to get my place. That being said, it’s a terrible time to buy. You should wait it out. I wouldn’t touch that retirement. That is a total 25 year old kid type move there....nobody in their right mind would tell you that’s a good idea...The housing market is about the worst market for buying that I’ve ever seen it in.
Just stick it out. A house is a place to live, just like renting is a place to live. Things will cool off and your situation will probably improve by the time conditions are good to buy.
@blecap1 IMPORTANT INFORMATION that a lot of people don’t know about that you should consider.
You can withdraw up to 10,000 from a traditional retirement account and not get hit by the 10% penalty. You will still have to pay income tax on the 10,000.
You could also take a 401k loan and not pay any in taxes or penalty but you will have to pay interest on the loan. Only do this if you know that your able to pay the loan back.
@blecap1 If you can find a good deal, that 65k can be enough of a down-payment on 2 properties, and on top, depending on your state you won't have to pay property taxes. You can live in one property and lease the other thus turning that investment into a positive cash flow. This is nothing to be sad about my dude, you got this
