Affording closing costs

[Aisha M.]

Hi BPers, I’m new here. I’m trying to buy a multifamily to househack but coming up short to meet closing costs under a conventional loan. Is borrowing a couple grand from my 401k to afford closing costs a good idea? And also, how would I be penalized going that route? Feel free to provide any other alternatives I probably haven’t thought of.

[Brandon Reed]

Hi @Aisha M. - Awesome job getting the househacking strategy underway! Have you looked into Down Payment Assistance programs in your county? If you Google that you may be able to qualify for loans via that route which should, in general, be much less complex than borrowing from your 401k.