Can my husband and I borrow against our IRA to finance a modular home for retirement?
We were hit with a large tax payment last year when we both worked and have very little down payment for a home to speak of. I no longer work and my husband will retire soon from his current employer. We should have at least 190000 dollars in profit sharing and 401K, if the markets do not fall too much more, which we will rollover into an IRA. Would lenders generally be amenable to lending 100,000 dollars against this IRA considering the credit report being positive? Some mortgage lenders will not lend that much on a manufactured home; that is why I am asking. We own the five acres of land where our home will be and the site is partially prepped.
Public Comments
- You cannot borrow from an IRA.
- You can use the cash from your IRA (up to a certain amount) to purchase a home (not an investment property, but a home that you intend to live in) without penalty. Speak with your broker about it. EDIT: well heres an article and apparently some IRA allow you to even buy investment property. http://www.realtor.org/rmomag.nsf/pages/managemoneyfeb02
- I believe if you are a first time homebuyer you can use IRA funds for the downpayment of a home. If not I mean hey its your money and you can withdraw it if you like, but you will face some penalities and the amount you withdraw will be taxed
