We are currently renting & would like to purchase a home. I have to wait another 6 months till i can pull money from my 401k without penalties. We have poor credit because of filing bankruptsy in 2007 but have enough money in the 401k to pay cash for a home. Is there any way to use it as collateral to purchase a home now ? Thanks, nancy

First - please do not use all caps in your posts - it makes it seem like you're SHOUTING.

Yes, you can use your 401(k) as collateral. You need a short term loan to cover the 6 months. So talk to your lender about it, and also talk to your 401(k) plan administrator about what paperwork is needed to establish your account as collateral.