i live in Virginia. I need to know if i can use an IRA as a down payment on a home without paying the tax penalties. I am a first time home buyer
David Reed is WalletPop's Mortgage Expert
First time homebuyers can cash in up to $10,000 of their IRA for the purposes of buying a home and not take a penalty for tapping into the IRA nor having to replace the funds. You'll have to qualify in every other aspect such as income and credit but lending and tax guidelines allow for such a transaction.
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