You can use the money you have in your 401(k) to meet this requirement without having to withdraw it.4.

Don't spend ten k on a program. 

The members of an LLC are issued K-1 Form and have to pay taxes on all profits as though it were income, which could expose the owners to high employment taxes.

Oren K. , Celveland Heights Oh.

Thank you @Charity Woods, @James Mc Ree, @William Clement, and @Chris K. for your insights. 

@Shannon K.  

FHA guidelines allow using collateralized loans (i.e. your 401(k), stocks, bonds, life insurance deposits, other real estate) but not anything that would increase your monthly obligation - so private loans, signature loans, etc. are all out for FHA.

Also not all 401(k)s allow employees to borrow.

So what I'm looking for from you, the greatest RE community, is some guidance on which strategy I should go with, and / or more details about HUD homes.I'd love to connect with people who have:Gone through the process of buying a HUD home (so I could get a step-by-step)An agent that specializes in HUD homes (I've heard too many stories of unqualified agents dropping the ball)Experience in the University Heights market (I've been looking on the west side mostly)Experience with FHA / 203(k) loans (to go over finer details)I would be extremely grateful if anyone could help at all.

I am also interested in learning about the self-directed 401(k)