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.
Plain-English explanation
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.
What can change the answer?
Gift source and donor eligibility, seller credit limits, down payment assistance program rules, and source-of-funds documentation can change the answer.
Want the real answer for your file?
FHA guidelines are the rule. Your credit, income, payment, property, and county limit are what decide the actual answer.
More FHA questions on Down Payment
Educational only. FHA guidelines, lender overlays, rates, fees, and underwriting requirements can change. Final eligibility depends on full underwriting review.