401k Withdrawal for Down payment

[littleroc02us]

Remember this: Just because there is a house on every block doesn't mean everyone can afford to own one. Don't ever let anyone tell you to. If can't afford it, don't. It will be a nightmare I gaurentee it. Pay down your debt before you even think about the next step.

[cypher1]

Actually, it takes a bigger man to stay at home in the American culture, that has been brainwashed that we have to man up (or grow up if you're a lady) and get your own. The retail industries as well people on the take want you to buy 2 or everything. But in reality, it is best for your finance and the environment to have multi-generations home. If you take 2 people with same financial stability, the person staying at home and save money is much smarter in managing money. The only people that want you to move out are the people that want to sell you something; i.e. a house, a mortgage, a furnace, a TV, etc.

Under your approach, OP needs to move out and add an rental payment of probably 800 dollars or more each money. Is that really smart? Rent is plain stupid if living for free is an option. But in a culture where TV makes a the rule, talking sense to people is like fighting a war on Drug & Terror.

Everything comes at a price, living with parents, renting, home ownership, and everyone's living situation is different. I'm not ashamed to tell others I didn't move out out till 28, but then again, I also gave them rent (a couple hundred a month i agree isn't much), fixed their cars, worked on house, and did the yard work. I have friends who moved out at 18 and never looked back loving their privacy/freedom. I don't think renting is wasting money since you need a roof, but my living situation and convenience I was able to provide more options to myself, regardless of how others judged. my only regret is not finding this site before I brought my house. Otherwise I'd have stay a home for a couple more years saving more on my down payment.

On a side note, you should've seen the look on my mom's face when I joked I wouldn't move out till 40. I thought she'd die of shock right there.

[Hector]

You are funny dude. I would
1. stop dreaming about buying a home
2. buy a used car worth 5k in cash
3. pay off CC debt
4. start shopping for a ring and would propose my girlfriend
5. would move out of parents house and rent a place if that is important to girlfriend. If not, would move out after getting married
6. would come back to this forum asking about house question once I would have 6-8 months of emergency savings and 20% of down payment for the house

[Kris Jarczyk]

Sometimes it is hard to save up and if it gets you into a home...at a great price and low interest rate...have to factor everything in. Or you could rent and pay someone else's mortgage and wait to save up when rates go up will wonder why you didn't go for the historically low intest rate. Or in a few yrs when houses start to appreciate. Good Luck!

[disneysteve]

you could rent and pay someone else's mortgage and wait to save up when rates go up will wonder why you didn't go for the historically low intest rate. Or in a few yrs when houses start to appreciate.

You should not buy based on interest rates. You should not buy based on housing values. You should only buy when you are financially ready to do so. Millions of people got screwed by buying houses they couldn't really afford out of fear that if they waited, the prices would go even higher and we all see how that turned out.