You must use the funds within 120 days for "qualified acquisition costs" (down payment, closing costs, or building expenses).

To use the penalty-free exception, you must meet these criteria:

You (and your spouse) must not have owned a primary residence in the last two years .

You can use an IRA to buy a house, but specific rules limit how much you can take and how it’s taxed. The IRS allows to withdraw up to $10,000 lifetime from an IRA without the usual 10% early withdrawal penalty. 🔑 Key Rules for First-Time Buyers