Saving for a down payment has become one of the biggest barriers to homeownership, especially as higher home prices and mortgage rates stretch household budgets. That pressure has many would-be buyers asking whether retirement savings can help bridge the gap — and whether the rules around using them may soon change. Yes, you can use money from a 401(k) to help buy a house, but only in limited ways, and often with meaningful tradeoffs. Under current rules, most buyers access their 401(k) either through a loan or a hardship withdrawal. Both options can provide cash for a down payment or closing costs, but they may come with taxes, penalties, or long-term consequences for your retirement savings. Even so, borrowing your own nest egg money is a common solution. According to a 2024 Zillow consumer survey, 24% of homebuyers tapped into retirement funds to help finance their down payment.Can I use my 401(k) to buy a house?
