where the other programs are available statewide and are for 1st time homebuyers and repeat buyers. There are income, credit and purchase price limitations for each of these programs but since they are primarily designed for 1st time homebuyers, the guidelines can be more liberal than standard conventional mortgage loans. There are steps to follow when applying for these types of loans / grants. First, check with a qualified licensed mortgage professional as to the availability and guidelines that apply to your area and situation. They will go over all the requirements of each program and which programs will apply to you and your needs. As always, I would be happy to recommend qualified mortgage professionals that can assist with getting you pre-approved for these types of loans.
PENALTY-FREE IRA WITHDRAWALS FOR FIRST-TIMERS
First-time home buyers are eligible to withdraw $10,000 during their lifetime from their Individual Retirement Accounts (IRAs) without paying the 10% penalty for withdrawal before the age of 59½, assuming certain requirements are met. The biggest requirement is that the money must be used to buy or build a primary residence (not a vacation home). If you have a traditional IRA, you’ll have to pay income tax on the money withdrawn. Roth IRA accounts, however, aren’t subject to additional taxes as they are funded with money that has already been taxed. The $10,000 lifetime amount that can be withdrawn penalty-free from an IRA is specific to each individual; this means a couple could withdraw $20,000 combined to pay for their first home. The person withdrawing also doesn’t have to be the future homeowner — a person under the age of 59½
83
Powered by FlippingBook