I'm a first time home buyer, can I use my 403(b) to purchase a home?

Answer by  worker8816 (29)

Yes, you may use your 403(b) to purchase a home. There are some conditions in doing so though, one being it must be a "hardship withdrawl" and you will have to certify that you have no other means for the down payment for the purchase of your home. there will also be a IRS penalty.

Answer by  tamarawilhite (17883)

A 403B cannot be used for this purpose. Money can be taken out of a Roth IRA for this purpose without penalty.

Answer by  cgroverla (516)

If you are eligible to draw from your 403(b), you will pay income tax on the distribution regardless of how you spend it. If you convert funds in your 403(b) to a traditional IRA, you can withdraw up to $10,000 for the purchase of a first home without an early distribution penalty. However income tax will still be due.

Answer by  technogeek (6640)

You can borrow from it, but you will have to repay what you borrowed or you will be taxed on what you too out.