Borrow against my 401k to buy house?

I am 31 and moving from FL to SC. M job here did not match my 401k and I currently have about 2,000 in it. A friend of mine is a mortgage broker and he looked at my credit report and says that I would not have an issue qualifying for an FHA loan. The homes I am looking at are all around 90k. with 3% down I would... show more I am 31 and moving from FL to SC. M job here did not match my 401k and I currently have about 2,000 in it. A friend of mine is a mortgage broker and he looked at my credit report and says that I would not have an issue qualifying for an FHA loan. The homes I am looking at are all around 90k. with 3% down I would need about $2500 (plus I have 2500 saved) . I plan on asking the sellers to pay clocing costs and/or price reduction to help with anything that may come up during the home inspection. My question is, since the 401k amount is only 2k would it be a good idea to borrow against it to help me get into a home? My mortage would be less than what I would pay renting and I am SOOOO ready for something that is all mine.


***My next employer will be matching my contribution which I plan on increasing to 5%
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