If you are a first-time homebuyer and U.S. citizen, then under the Taxpayer Relief Act of 1997, you are allowed to withdraw up to $10k from an IRA to use as part of a down payment for building or buying a home. However, you will be subject to income tax if this is withdrawn from an IRA. If you withdraw from a Roth IRA, the money will not be subject to income tax. Normally it isn’t a good idea to use your retirement money, but if you really need more money as part of your down payment, this could be an option.
