pension as collateral

[snobare]

Has anyone ever heard of using your pension for collateral when applying for a mortgage with seriously bad credit?

[Avian]

I haven't directly heard of it, but you could probably do it somewhere. It's basically as good as an investment.

[ferby03]

You cannot use a 401k as collateral. I don't know about a company financed pension as I've never had one before. You can, however, borrow money against your 401k to use as a down payment on a home. This is preferable to withdrawing the money completely, because if you do that you must pay taxes on it as well as a 10% penalty to the government.

However, if it is at all possible, you'll want to avoid doing either of these things. If you withdraw your money from your 401k, besides your penalties, you won't be left with much of a retirement fund. If you borrow against it, you'll have to pay it back. It's much better if you go ahead and put that money into your retirement fund so that you'll have it.

It's so easy to say that retirement is so far away, you'll have time to catch up. But before you know it, you'll be 50 and wondering where all the time went.

[Raquelita]

Originally Posted by ferby03

You cannot use a 401k as collateral. I don't know about a company financed pension as I've never had one before. You can, however, borrow money against your 401k to use as a down payment on a home. This is preferable to withdrawing the money completely, because if you do that you must pay taxes on it as well as a 10% penalty to the government.

However, if it is at all possible, you'll want to avoid doing either of these things. If you withdraw your money from your 401k, besides your penalties, you won't be left with much of a retirement fund. If you borrow against it, you'll have to pay it back. It's much better if you go ahead and put that money into your retirement fund so that you'll have it.

I agree with this - especially not to withdraw $$ from a 401k due to the tax penalty and how important it isto save for retirement.

[derdo]

Hi, I certainly agree with you all . Your advice is really very helpful for us.
Thanks a lot!

[energy recruitment]

Hi, I certainly agree with you all . Your advice is really very helpful for us.
Thanks a lot!

It is not the best way to post in forums

Regards