Home Buying in 94582>Question Details

jsree, Home Buyer in San Ramon, CA

First time home buyer can get 10k from IRA account?

Asked by jsree, San Ramon, CA Sun Mar 30, 2014

Hi,

I am a first time home buyer. I heard that I can use 10k from my IRA account for home buying without any penalty. I would like to know the pros and cons on this. Could you please advise...

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Answers

5
Yes, this is a possible option for you. You may be able to take out cash from your IRA for a down payment, but the penalty may depend on your age since there is an age restriction to pulling out money. Also, there are other low down payment mortgage options that you should consider if you want to avoid taking out money from your IRA. FHA mortgage have options as low as 5%. Either way, the best thing for you to do is to speak with a knowledgeable lender to see if you can get started on financing a new home. If you need additional assistance, feel free to reach out. Good luck!

Brian Nguyen
Sr. Mortgage Banker
NMLS # 659743
Phone: 949.667.2887
brian.nguyen@nafinc.com
0 votes Thank Flag Link Thu Apr 3, 2014
Like everyone below has mentioned there are tons of financing options available to you as a first time home buyer. For example, FHA loan has an option of putting 3.5%. If you don't have the down payment then it might be a good idea to look into your IRA. I would still encourage you to have a word with your CPA and look down the path, how buying a home fits with your financial goals.
0 votes Thank Flag Link Tue Apr 1, 2014
Jsree
before you draw your IRA account, there are Loan programs that can help you to get credits when you are first time buyers, please Inbox me at hector.vasquez@carringtonres.com and I can refer you a good Loan officer to explain you credits available for first time buyers without using your IRA
Hector
0 votes Thank Flag Link Mon Mar 31, 2014
Borrowing or withdrawing from a retirement account may be possible, but it should never be done without doing the necessary research with a loan professional, a tax professional and a finance professional. Just make sure all of the above are not the same person --- and certainly not all you.

Seriously, if you are getting started with your research here, good for you. As the loan professional I can tell you how far $10K will get you in the grand scheme of things and if you think that's a good place to start, let me know.

I'm fairly local and happy to help. I also work with a lot of first-time buyers.

Rob Spinosa
rspinosa@rpm-mtg.com
0 votes Thank Flag Link Sun Mar 30, 2014
Yes you can. But if you don't want to there are a few low and no down payment options for financing. Just send me an email if you have any further questions.

Alex Greer
Loan Officer
NMLS #1056079

http://www.TheMortgageOutlet.com
408-352-5147
AGreer@TheMortgageOutlet.com
0 votes Thank Flag Link Sun Mar 30, 2014
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