401k Withdrawal for a house?

Here's something to think about. We have an agency here that is called the West Virginia Housing Development Fund. They exist to obtain no down/low interest mortgages for first time home buyers. This was defined as someone who had not owned a home in the last 3 years. Credit score doesn't matter either, but I think there may be an income cap. Anyway, I qualified for $48000 with no down payment, no points, no closing costs, and 3% interest rate for 30 years. Could have gotten more money but that's all I needed. The deal fell through when the seller decided that since I came up with that much in less than a month, I could come up with more and almost doubled the price. I told him :thebirdm::thebirdm: and walked away. I bring this up since the company that I dealt with and sent all the paperwork to was based in Seattle. I might be able to find some of it and get you a name or website for contact if you want. There may also be an agency like this in your state as well.