In most cases you cannot borrow from a down payment on a home...unless you can borrow from yourself!
If you have invested in a 401(K) plan, you can borrow for a down payment without drawing either penalties from the IRS or disapproval from the lender. The loan must be paid back in equal quarterly payments, but you may take several years to complete the repayment.
The "penalty" comes in the form of double taxation on the interest payments on the loan. Once when you us after-tax dollars to repay the loan, and again when you withdraw the money after you reach 59 1/2. These are difficult to put together. Be sure you have a knowledgeable and experienced Realtor to assist you.
Mark E. Fry
President
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