Coming up with the money to buy a home is tricky. Here are some avenues to explore. PennyGem’s Johana Restrepo has more.
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00:03 Coming up with the money to buy a home is tricky.
00:06 Although this may not be an option for everyone,
00:09 some people may be able to withdraw up to $10,000 from a Roth IRA account
00:15 free of taxes and penalties to purchase a home.
00:18 According to CNBC, you can withdraw direct contributions
00:22 because you already paid taxes on this,
00:24 but the same can't be said for any growth on your account.
00:28 You'll be charged a 10% penalty for withdrawing money
00:32 unless you reach the age of 59 and a half
00:35 and have owned a Roth IRA account for at least five years.
00:39 Vestopedia recommends looking into first-time buyer offers,
00:43 which also apply to people who haven't owned a home in three years
00:47 or only owned a house with a spouse.
00:49 You can also tap into down payment assistance programs
00:53 like the Federal Housing Administration,
00:55 which offers loans to low to moderate income borrowers.
00:59 If you're still coming up short, it may be time to downsize a bit,
01:03 sell some belongings, or even speak to family
01:06 who can give you monetary gifts for birthdays and Christmas
01:10 to help you save for that down payment.
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