Can I use my 401k to buy a house without penalty?

Can I use my 401k to buy a house without penalty?

Key Takeaways. You can use 401(k) funds to buy a home, either by taking a loan from the account or by withdrawing money from the account. A 401(k) loan is limited in size and must be repaid (with interest), but it does not incur income taxes or tax penalties.