USING AN IRA TO MAKE A HOUSE DOWN PAYMENT

FLORIDA REAL ESTATE ATTORNEYS

Hands - Holding HouseThe South Florida Real Estate market is thriving.  As first time homebuyers try to secure their place in the real estate landscape, with student loan debt and property values at an all time high, many first time home buyers have very little funds to put down as a down payment for their real estate home purchase.  Luckily, a little known secret exists to assist with the first time home buyer purchase.

If you qualify as a first-time home buyer, you can withdraw up to $10,000.00 from your IRA (which is typically not permitted until after you are 59 1/2 years old unless you pay a penalty) to use as the down payment.

Certain restrictions apply including the requirement that the IRA funds withdrawn must be used within 120 days of the withdraw and only for the home purchase.

If you already own a home, you can make penalty free withdrawals from your IRA to help:

  • your or your spouse or child;
  • your or your spouses grandchild; or
  • you or your spouses parent or ancestor.

If as a first time home buyer, the purchase falls through or the contract gets cancelled, you can return the funds with no tax due.  The contribution is treated as a rollover contribution to the IRA.

For assistance with ALL your home buying needs, including contract review or preparation, title work, escrow services, we are here for you.

We have been serving the South Florida community for over twenty years.

Call for a free consultation.

 

Law Offices of Jacqueline Salcines, PA

706 S. Dixie Highway

Second FL

Coral Gables, Florida 33146

Tel.  305  669  5280

Email: J.Salcines@Salcineslaw.com

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