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[quote=Anonymous][quote=Anonymous][quote=Anonymous]Similar situation here as the OP.  I was thinking of a [b]hardship[/b] withdrawal from 401K plan to get most of the downpayment -- not wise financially, but the only alternative I can think of.  [b]Silly?[/b][/quote]
Hardship?
Seriously?
Yes, silly.[/quote]

I am the silly one.  "Hardship" is just a generic term:  the 401K plan will allow me to take up to my whole balance for a number of reasons, which they call "hardship" reasons.  One such reason is the purchase of a primary residence.  I will not take all the balance, but a sizable chunk of it.

Why do I want to do that?  This is the context:  HHI of about $300K+, current mortgage about $710K, current home value about $800K.  Almost no car or other debt, but nanny expenses.  Problem: for a number of reasons (long story), we don't have a lot of savings, other than our $90K home equity (which will go down to $50K or so if/when we sell due to realtor fees), and my 401K.  (We have good pensions, and we're not touching those).

We want to move for schools to MoCo in a couple of years, but we are aiming to a smallish, not updated home.  We've seen homes we like for less than $850K.  So we'll plan to use about $120K of the 401K, plus some other minor savings and current equity.  I don't see any other way to get the downpayment.  Still silly to get $120K from a 401K plan if really want to move?  Why?[/quote]

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