Is it worth it to cash out an IRA for a deposit on a home?

I'm 26 and started putting money into a Roth-IRA 10 years ago. I really want to buy a house. I know first time home buyers can take $10,000 out of their IRAs without penalty. Would it be a good idea to use this money and some more from savings to buy a home? Also, I am young enough that I think I could still have roommates for another 5 years (who could help pay my mortgage) Should I leave my IRA alone and save for a few more years or should I cash it out next year and buy a home?

Is it worth it to cash out an IRA for a deposit on a home?
I was able to use the fact that I had the IRA's toward my home purchase without actually having to cash them in. I did have 10% saved for a downpayment, though, separate from the IRA's. Shop around for lenders and find some terms that are agreeable to you. There are a lot of first time homebuyer programs out there that you could probably take advantage of. You are smart to think about having roommmates to help pay for the mortgage. Sounds like you are very much financially on the ball if you set up an IRA 10 years ago! There are people 20 years older than you are now who haven't even begun to think about saving for retirement. Smart girl...I'm impressed.
Reply:don't take it out ,let it stay ther working on your behalf
Reply:As long as you are buying a home in an area where the property value is increasing, then I think it's smart. Homes can grow at rates much faster than an IRA can. Just make sure you can afford the home, and you will have a more worthy investment.
Reply:Before you consider tapping into savings, call your local housing authority and ask about down payment and closing cost assistance for first time home buyers...if you meet the income guidelines then you may be eligible for quite a bit...my state offers up to $15,000 in assistance for low to moderate income buyers. This money must be repaid from the proceeds of the house should you choose to sell, but is not due unless you sell, or until the mortgage is paid in full...and it is no interest. good luck....by the way...once the mortgage is paid in full you make payments on the $15,000 it is not due all at once unless you sell the house.
Reply:Yes it is a good idea. you are sellling one asset ro buy another.


But because the tax was defered on it you have to pay some price.





See if you can borrow at certain lower interest and pay it back first so you can have both.
Reply:Buy the most house you can - that is, the most house you're sure you can pay for as long as you will live there.





Your down payment will be leveraged thereby, and enjoy tax-deferred growth just like your IRA would.





Take some time to do a fine analysis - remember that a more expensive house will cost more in taxes, and more to heat, cool, and insure. Run all the numbers, or get professional advice.





But, it is the very most reliable investment you can make.
Reply:Here is some info you can use:





http://tinyurl.com/jog33





Regards
Reply:Dont do it kid. suck it up and leave your IRA alone. Find another way if you really want a house. But why would you want one if your not married and with kids yet. Dont do it cuz youre girl wants you to. Live the single life longer and save up so that you can live comfortably later on.