AFY Kim Blue - Home Buyers Guide V1 - 3020

finances in order. By doing so, these individuals stand a greater chance of qualifying for a mortgage. For example, simple courses in home economics or household budgeting are important to the financial success of the individual, and achieving the grant program’s goals. Different states have different programs and conditions for home- buying grants. The one thing they have in common is that all 50 states have explicit grants for first-time home buyers. Do your research and check what grants are available in the community you’re planning to move to. There are steps to follow when applying for a buyer grant. First, find a home buyer grant that fits you. Then, check the requirements of that grant program. Finally, find an approved lender and fill out all the application forms correctly. The HUD website is a great resource for buying a home, whether it’s your first or your tenth! (https://hud.gov)

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 If you have a traditional IRA, you’ll have to pay income tax on the money withdrawn.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 The $10,000 lifetime amount that can be withdrawn penalty-free from an IRA is specific to each individual; this means a couple could withdraw $20,000 combined to pay for their first home.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

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