Can I use a 401k Loan for down payment on a Home?

[Juan M Restrepo]

I am considering House Hacking in about 6 months or so. I am trying to put myself in a good financial position to buy a good property to do some cosmetic work. I was planning on using low money down (FHA/ 5 % conventional) to acquire it. I could max the contribution for my 401k as my expenses are low for 6 months and take out an 401k loan towards the down payment 6 months from now (have around 10k on my 401k by then). I would also have saved around 25k in cash by 6 months. Do loan officers allow you to use a 401k loan for a down payment on a primary residence?

Also, what would you do in my position? Would you max your 401k ( only reason I am doing this is for loans to use for real estate) or just save all the cash to buy the property for house hacking?