Good idea?: Taking a loan against retirement funds to cover the deposit

I have found a four-plex with 1/1 units. Unfortunately, the mortgage company advised us that it would require 35% down. The cost is $190K, plus we expect $40K in repairs. I don’t have that type of cash available, but I do have it in retirement funds. Is it a good idea to borrow against my retirement? I am retired from the US Navy.

Ann-Marie Knight

Personally, I would not recommend borrowing against your retirement to fund and investment property. That is unless the cash flow is out of this world. but with a purchase price of $190 and needing $40k in repairs - I doubt it.

Have you considered getting a VA loan? You would have to live in one of the units for a period of time but VA loans do not require a down payment. Nor do they have mortgage insurance. Could be a good option if you are already renting somewhere else.