Using Your 401(k) - Financially Prepare to Buy a Home - Pt. 6

Can your 401(k) help you stop renting and buy a home sooner?

This episode unpacks a controversial—but often misunderstood—strategy for first-time homebuyers: using your 401(k) to fund your down payment. David Sidoni breaks down how this can be done safely, why it may actually support your retirement, and how smart planning can help you enter the market sooner without sacrificing your future.

“When done right, this move strengthens both your now and your future.”

Highlights:

• Why using your 401(k) isn’t necessarily “robbing your future”
• How 401(k) loans work—and why lenders often don’t count them against you
• The rent replacement strategy and how it supports long-term wealth
• Why entering the market sooner could be smarter than waiting

Referenced Episodes

• 400 - Introduction: How to Buy a Home Starter Series (START HERE)
• 388 - The Playbook VOL. 1 - The Rent Replacement Strategy
• 355 - Real Answers Pt 4: Should I Rent or Buy in 2025?
• 198 - PMI Is a Privilege
• 216 - PMI Is Still A Privilege And Still Not The Devil

401K Interviews

• 369 - INTERVIEW: From Fear to First Home: How Regina Bought Solo in Her 40s
• 273 - Buying a Home in 11 Days! Single Mom Becomes Atlanta Homeowner (Interview)
• 163 - Let’s Hear From Another REAL Home Buyer: Amber’s Story
• 161 - Achieving The American Dream: An Interview With Sally
• 135 - Interview With First Timers In One Of The Most Expensive Areas - Buying Without 20% Down Payment
• 113 - Interview With A Single, Female First-Time Home Buyer In 2022

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David Sidoni, the "How to Buy a Home Guy," is a seasoned real estate professional and consumer advocate with two decades of experience helping first-time homebuyers navigate the real estate market. His podcast, "How to Buy a Home," is a trusted resource for anyone looking to buy their first home. It offers expert advice, actionable tips, and inspiring stories from real first-time homebuyers. With a focus on making the home-buying process accessible and understandable, David breaks down complex topics into easy-to-follow steps, covering everything from budgeting and financing to finding the right home and making an offer.

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