[quote=ibjames]if you have to dip in your 401k to get a house I wouldn’t do it.. too much risk

if you can get close to your rent I would go for it, 3% or 10% down..

stay out of the 401k, if you have to dip to get it done it isn’t worth it, I gamble, but I don’t gamble on that[/quote]

I agree with this.

Consider your 401k as a cushion in case of disaster, but do not tap it for the down payment..

My earlier point was that if the cash you have for down payment is all of your assets, then it is not enough, you should save more.

In your shoes, I would consider an FHA loan. That way the money you have saved for your down payment can act as a cash cushion. Personally, I’d rather have 12 months of mortgage payments sitting in the bank than have 10% equity in my house.

We bought our first house in 1996 with 5% down, and that was after the lenders has tightened considerably after the early 90’s bust. I could have scraped another 5 % together but I slept better at night with that 8K in the bank (sounds like a measly sum these days, doesn’t it ?)