Lender Told Them To Drain Their 401(k)s To Buy A House. 'Ramsey Show' Host Says, 'This Is Not A $36,000 D

A Florida couple hoping to buy their first home got some advice from a lender that immediately raised red flags for them: cash out their retirement accounts to fund the down payment.

That concern prompted Dan from Fort Myers to call into “The Ramsey Show,” where hosts George Kamel and Jade Warshaw strongly pushed back on the idea.

Something went wrong.

Warning Against Raiding Retirement Savings

Dan explained that he and his wife were considering cashing out about $36,000 from their retirement accounts after their lender suggested it. The couple earns about $140,000 a year but is also carrying roughly $30,000 in credit card debt and a $20,000 car loan.