From NAR
Saving for a down payment is one of the biggest hurdles facing first time homebuyers, and many are surprised to learn that retirement accounts may offer options to help bridge the gap. Depending on the type of account and individual circumstances, some buyers may be able to access retirement savings for a first home purchase, though it is important to understand the tax implications, penalties, and long term financial impact before making that decision.
While tapping into retirement funds can make homeownership more attainable, it is not the right solution for everyone. Buyers should carefully weigh the benefits against the potential effect on their future retirement savings and work with trusted financial professionals to determine the best path forward.
For REALTORS®, conversations about financing often go beyond mortgage rates and down payments. Understanding the resources that may be available to buyers, while encouraging them to seek guidance from qualified financial and tax advisors, positions you as a knowledgeable and trusted resource throughout the home buying journey.
The bottom line is that every buyer's financial situation is different. Helping clients explore all of their options can make the dream of homeownership feel a little more achievable.
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