ANSWERS: 2
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You are over 59 1/2 so there are no penalties....You have to pay taxes on a withdraw no matter what it is for, b/c it is still considered income.
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The answer is yes and there is also a Tax Credit check (up to $8000) available from the new Stimulus bill which might help you. Here is a site that offers several ways to get your down payment together. http://www.ptmortgage.com/blog/2009/06/04/first-time-home-buyers-get-8000-tax-credit-after-closing-how-to-come-up-with-cash-for-the-down-payment-now/ I would recommend not rushing to buy until later this year but before December when the stimulus check will be unavailable. Most observers believe that property values will continue to fall in most areas this year.
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