trying to lower their out-of-pocket spend. • FHA Loans and Down Payment Assistance: FHA loans require as little as 3.5% down, making them an ideal match for down payment assistance programs. Your Loan Originator can connect you to state or county-level programs that may fund this requirement—or at least make it less painful. • Where to Start: Every state has its own unique grant programs with varying eligibility requirements. Be sure to explore local options or consult HUD’s website for national guidance. But here’s the kicker: you must qualify for a mortgage first to tap into these funds. So, no shortcuts, folks! Penalty-Free IRA Withdrawals Here’s a fun financial loophole for you: First-time home buyers can withdraw up to $10,000 from their IRA without the usual 10% early withdrawal penalty. That’s right—Uncle Sam actually cuts you some slack, provided the money goes toward purchasing or building your primary residence. • The Nitty-Gritty: If you have a traditional IRA, you’ll still pay income tax on the withdrawal, but a Roth IRA lets you off tax-free since you’ve already paid taxes on those contributions. • Double Down: If you’re buying with a partner, you can both withdraw $10,000 penalty-free, giving you $20,000 toward your purchase. Not bad, huh? • Heads Up: You’ve got 120 days to spend the funds on your new home before the penalty kicks in. Don’t let that deadline sneak up on you. Pro Tip: While this option is tempting, depleting retirement savings is risky. Talk to your financial advisor before dipping into your nest egg.
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