A third choice is so you can borrow $30,000 towards the second mortgage, on same bank or of an alternative bank Brand new advance payment needed for property pick is one of important barrier so you’re able to home ownership. Tapping a good 401K account is a tempting kind of meeting new requirements. Choice methods are one minute mortgage, that is some other way to obtain required fund, and mortgage insurance policies, hence decreases the downpayment necessary. As the an illustration, we wish to get a home to own $two hundred,100000 and also have merely $10,100000 when you look at the dollars to put off. As opposed to financial insurance policies, loan providers have a tendency to get better just $160,000 towards a primary mortgage, leaving you $30,100000 short. You to definitely it is possible to source of brand new needed $31,000 is the 401K account.