conversation: User (esu418): "I was thinking about buying a house sometime this year and I don't know much about how it all works. There's a lot of general websites that tell you "Top 10 mistakes home buyers make" Or "Tips for first time home buyers" that don't seem to get very specific so I figured I'd post here for advice.\n\nFirst of all my budget is 200k with some wiggle room. I have 17k available in my regular cash investment account and savings and 38k available in my IRAs. I have very little in a 401k since I just switched jobs and just rolled my old one over into a traditional IRA. I also have no debt. I would rather not withdraw money from my IRAs but I want to put 20% down on my house to avoid paying extra for mortgage insurance. My parents said they would help me with the remainder of my down payment so I was thinking about doing that and paying them back.\n\nI found a place I really liked but its a bit over my budget at 220k. (plus whatever other costs that are gonna come with the house) Since I started searching for homes I've been hearing a lot about grants and ways you can get "free money" for being a first time home buyer like "bond money" or something like that. Whenever I hear these things i immediately assume there is a catch. What are the various grants, bonds, or whatever where I can get this money to help out with my down payment without having to borrow from my parents and are there any cons to these programs like an increased rate or something that I should know about?\n\nAny input or advice on general home buying would be appreciated too."
  Self: "I've bought two homes in my life. My current one, great school system, great house, gets me about $.25 for every $1 I have paid into the house. \n\nDo not be in a rush to buy a house. After all the costs they are hardly fantastic wealth accumulators (in most markets in the US), particularly right now the market may be over heated and you won't get a great interest rate.\n\nI would not tap your ira for this. Your IRA is for retirement. If you start seeing your retirement funds as **anything** other than for retirement or ransom money if your kid is kidnapped, you are looking at them wrong."
  