Etta Carter - THE COMPLETE GUIDE TO BUYING A HOME

factors like credit score, income level, and residency requirements. Buyers must also qualify for a mortgage to be eligible.

Finding and Applying for Grants

Each state, and often local governments, offers its own unique grants and assistance programs. Start by researching what’s available in the area you’re planning to move to. The HUD website (https://hud.gov) is an excellent resource for identifying grants and approved lenders. When applying:

1. Find a grant program that fits your needs. 2. Check the eligibility requirements. 3. Work with an approved lender to ensure your application is completed accurately and on time.

Penalty-Free IRA Withdrawals for First-Time Buyers

First-time homebuyers can withdraw up to $10,000 from their Individual Retirement Accounts (IRAs) without incurring the 10% early withdrawal penalty, provided the funds are used to buy or build a primary residence. Key Points to Know • Traditional IRA Withdrawals: These are subject to income tax, even if the penalty is waived. • Roth IRA Withdrawals: Since these accounts are funded with post-tax dollars, the withdrawals are not taxed. • Joint Benefits: Couples can each withdraw $10,000 penalty-free, giving them a combined $20,000 for their home purchase. • Family Assistance: The rule also applies to helping a child, grandchild, or parent purchase their first home.