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Brye11626 t1_je263ef wrote

Im confused. You saved money to buy a house and now you want us to tell you if it's okay to withdraw the saved money on a house?

Not to be rude... but wasnt that the entire point of the account in the first place? Savings have no value other than to buy things. If your goal with this money was to buy a house, then sure go try and buy a house.

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accyoast t1_je2g2c8 wrote

yes but i’m asking if it’s worth breaking the first 100k that is deemed so important. also, my brokerage account is 15% so not sure if it’s good financial decision to take the loss or not to take advantage of the program

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ivydesert t1_je267hs wrote

If your brokerage accounts are home to your long-term savings, no.

If you have ample retirement savings in separate tax-advantaged accounts and your brokerage isn't factored into your retirement planning, then go for it.

The first $100k is just a benchmark. There's nothing inherently important about saving six figures. This is just when your ROI starts to actually feel substantial.

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accyoast t1_je27fha wrote

i’ve been maxing out my retirement accounts, currently on the second year of maxing out my 401k. My brokerage accounts were created to store money for a down payment of a house in the future. But because of the new program, im in a tough spot where i want to try to break even before buying a house or take them out (about 60k) for closing costs since i don’t need a down payment anymore.

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Grevious47 t1_je27eru wrote

I mean if you are truly down and you are not exagerating (ie you have contributed more than you actually have left) then withdrawing won't be a taxable event and you can in fact claim any loss as a deduction on your taxes (up to $3k per year and it rolls over) then you could use that cash to put a payment on a house sure. But you would also be locking in your losses.

Depends how much you want to rush home ownership.

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jgomez916 t1_je3jakf wrote

Are you really willing to barrow the loan for a down payment under the CalHFA Ca Dream for All Program.

You have to repay the loan eventually at sale/transfer or after 1 refinance or when the loan is paid off at end of term and then you have to share appreciate.

That shared appreciate can cost more than PMI.

If you live in a HCOL city than it may be worth it if houses will just appreciate and appreciate you will keep the house for a long time

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Pronoia4 t1_je4ulb6 wrote

At your age, with your income and retirement savings? Go for it assuming you personally want to own, can afford to keep maxing your 401k with a mortgage, and aren’t on a hardcore FIRE path. Maybe even if you are. Yes that money will snowball if you leave it alone, but how long before it matters? Will you be happier using it to pay in cash in a decade, or will you appreciate the decade in a house more? I bought at 28 with less for a down payment and I’ve never regretted it.

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