Can I use an IRA for a down payment?
Yes. You can withdraw from an IRA for a down payment, and first-time buyers can pull up to $10,000 from a traditional IRA without the early-withdrawal penalty (regular income tax still applies).
Roth IRA contributions can be withdrawn tax- and penalty-free anytime. We'll help you document the source of funds so it qualifies as a valid down payment.
The first-time buyer exception
Yes. The IRS lets you pull up to $10,000 from a traditional IRA for a first home without the usual 10% early-withdrawal penalty. You still owe income tax on the amount, but the penalty is waived.
For a Roth IRA, you can withdraw your own contributions anytime tax-free and penalty-free. After five years, you can also take up to $10,000 in earnings for a first home with no tax or penalty.
Plan the timing
The $10,000 first-time buyer limit is a lifetime cap, not a yearly one. If you and a spouse each have an IRA, you can each use the exception, which doubles the tax-friendly amount.
IRA rules get technical fast. Loop us in early and check with your tax pro so the withdrawal helps your purchase without a surprise bill. Then apply when your funds are ready.
Verify the details for your own situation against these government and agency sources: Florida Housing homebuyer programs and CFPB Owning a Home guide.