using 401k as down = bad idea

why would you want to do that?

 

Usually they're not available to you until you put in like a year's worth of employment, atleast that's how it is at my current job (which I don't see myself here too long). I'd save it for retirement though. Thanks for your all your input.

 

if you get an 80/20 your monthly payments might come out cheaper than getting a full 100% mortgage with PMI. ( PMI only comes into play if you dont have the 20 % downpayment )

Most people dont have or dont want to put down 20 % anyway.

 

dude,..I DO NOT recommend using your 401k as a downpayment.
Theres a bunch of fee's you'll have to pay since its being taken out prematurely

 

I heard that you won't have to pay penalty if you're a first home buyer.

 

+1
Don't touch the 401K

The first concern I'd have about this is the fact that two unmarried people are going to try to buy a house together. You'd better make sure your bases are covered if things in the relationship were to go sour. Is the mortgage and house going to be in both of your names? If one of you decided to bail and not pay the other will be screwed (along with your credit). I've even heard of one person putting their name on the mortgage and the other on the house. Then the person with the house bails and the others left with the mortgage. Just be careful. Make sure all the legal stuff is covered.

 

dont do it!, put it in your name.

 

This is true. But I still wouldn't touch it. More out of principle than anything else. A retirement account should be an absolute last resort, like if your spouse is dying of cancer or something. Buying a house isn't even a good enough reason IMO. Maybe saving the house from being foreclosed on would be a good reason, but not a down payment on one.

You may actually come out ahead using a 401K for help on a down payment right now, especially with the market bringing the suck (assuming the 401K is invested in a mutual fund) and it's a buyers market for homes. But if a 401K is viewed as some sort of disposable account for special circumstances, you'll retire very poor. There will always be some reason it's a good idea to take it out. Personally, I'd pretend that it's not even there (until you're 59 and a half). Just my 2 cents.

 

Noted.....There's nothing sour in our relationship, things are great. Of course there's ups/downs but thats with any relationship.

I do plan on popping the question toward the end of this year. :shhh: I'm secretly putting money aside for a ring with some nice bling bling.

 

have you evaluated how much house you can afford? you should figure that out first, then try to tailor your savings towards the correct down payment amount.