You can take penalty-free IRA withdrawals to finance a first-time home purchase for you, your spouse, a child, a grandchild, or an ancestor of either you or your spouse. There's a $10,000 lifetime limit on withdrawals for this purpose. Withdrawals over and above this limit may be subject to the 10 percent early withdrawal penalty.
The 360 Degrees of Financial Literacy Web site offers general information for managing personal finances and does not recommend specific financial actions. For financial advice tailored to your situation, please contact an expert such as a CPA or a personal financial advisor.