Should you consider using retirement funds from a 401 (K), an IRA or a Roth as down payment on a home? Some say "NO!," because of lost future earnings on the money, recommending waiting and saving funds that might otherwise be contributed to the fund. That's hard, when family needs and opportunity say "house now."

If you must tap retirement savings, a 401(k) is the best option. Most plans permit borrowing up to half of the balance without tax or penalty. Interest rates are low usually prime rate plus a point or two and interest paid is added to the worker's account. Most loans must be repaid within five years, but an employer may wait longer when you borrow to buy a house. Be aware, though, that if you lose or leave your job, the loan must be paid back promptly, often within 60 to 90 days. If not, the amount will be considered a distribution subject to taxes and a 10-percent early withdrawal penalty if you will be younger than 55 at the end of 2013.

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