Can I use a 401k for FHA down payment?
Yes. A 401k loan or withdrawal can fund the down payment. Documentation is required: terms of the loan, proof of receipt, and the impact on monthly DTI.
What this actually means.
A 401k loan against your own balance does not count as new debt for some lenders' DTI math, but the repayment is a real obligation. A 401k withdrawal triggers tax consequences. Talk to a CPA before pulling.
Where this can move.
Gift source and donor eligibility, seller credit limits, down payment assistance program rules, and source-of-funds documentation can change the answer.
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Educational only. FHA guidelines, lender overlays, rates, fees, and underwriting requirements can change. Final eligibility depends on full underwriting review. Mortgage Expert, Inc. is not affiliated with HUD, FHA, or any government agency.