[quote=clearfund]
Yes, from your IRA you can only borrow up to $10k ($20k if married) in for a downpayment on a home. If its an IRA you will be subject to taxes on the withdrawl, however, the IRS will waive the early-withdrawl penalty. $10k helps, but isn’t a miracle.
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This isn’t exactly right. It is not a loan at all, it’s a penalty free withdrawal. A taxpayer in the 28% tax bracket will only net $7,200 (ignoring state taxes for the moment). A pretty costly way to acquire a home, and at least with our local prices, it doesn’t really help much with the acquisition. So you’re right on the last part. It isn’t a miracle. It’s likely to be somewhere between $7000 and $8500 that costs you $10,000. Loan shark kind of cost. Pretty high vig for your own money.
And there are other requirements. It has to be for the purchase of a first home.
