Thanks. That's how I interpreted the Qualified expense language.We used 529 funds two years ago for our son's deposit. I think that you would need to review your 529 documents closely- ours is through Virginia- and has this wording:
Qualified higher education expenses include tuition, all mandatory fees, room and board costs, textbooks, supplies and computers required for attendance or enrollment, and special needs services.
We interpreted that as allowing us to use the 529 funds for the deposit. No questions from either the fund or the IRS to date.