withdrawal for dp

If the retirement account is a 401K, it would make more sense to borrow from the 401K instead of doing a direct withdrawal. I think you can only borrow about half the value, but the net amount available to be used as dp is about the same since you would lose about half in a direct withdrawal due to the 10% penalty AND the regular tax you'll have to pay. That regular tax will be based on your highest tax bracket, because the withdrawal amount will be added to your regular income. Of course the specific savings will be based on your current income/tax bracket, but borrowing from a 401k is definitely the better than a direct withdrawal.