3 things to know when financing a home with 401(k) withdrawal

The real estate market in Arizona has cooled down, with the median home price in Phoenix being $410,500. For those who want to enter the market, there is an option of borrowing against their 401(k) funds with no penalties for purchasing a primary residence. However, this type of loan must be repaid and individuals should be aware of the early withdrawal penalty and income tax they may incur. There are other options, such as VA and FHA loans, or down payment assistance programs, that should be explored before withdrawing from a 401K.