7kafrank

Thank you, Lou.

Whoops I just realized this forum is for service providers!! Everything I tried to look up about this topic would lead me here and I figured it was a public forum for questions. I apologize for the intrusion!

Hi everyone! Mare there certain rules for what type of property you can purchase in order to qualify for using a hardship distribution with your 401k? Here’s the back story: we found a house we love but have had some issues as far as financing. This is a bank owned property zoned as C3 (mixed use) and the residential property has two commercial buildings attached so the bank is requiring a 20% down payment. With no other options he has submitted a request for withdrawal under hardship to help cover the down payment. They requested a copy of the sale contract and loan estimate disclosure, which is now in processing. We are worried that since the contract has 3 addresses they will deny his request. This will be his primary residence and there is no way to only purchase the residential part since it is a bank owned foreclosure. I know this is a unique situation but does anyone know the likelyhood of this being denied? Also, we are under contract and get early access to the property tomorrow and will be moving our stuff in. If this falls through we cannot purchase the property, will have to move our stuff out, and find somewhere to live. Any advice would be very much appreciated!!