Open A Roth IRA While You Wait To Buy A House In Arizona

With the economy where it is today in September 2010 many people who have had their eye on buying a short sale home sit and wait for the right moment. Some of the reasons why people are sidelined are because:

  • of the uncertainty around their job situation.
  • Others are waiting because they don’t trust that we’re out of the housing slump meaning that any house they buy now could lose value – this is especially true in Arizona with the huge numbers of foreclosures and short sales available on the market.
  • And there’s still another group of side-liners who don’t have the money for a down payment, or don’t have the credit scores to qualify.

There’s not much to say about waiting on a job situation which is tied to the economy. It seems like a prudent action to take to wait through the job market uncertainty until a time when there is more stability with employers. Likewise, not wanting to buy a house while there may be some more downward direction in home values seems pretty reasonable too.

But, for the the situation of not having enough money to purchase a house or having poor credit there are quite a few actions you can take to get yourself in a better situation for home buying in the future.

Let’s start first with not having money for a down payment. One way to save for a down payment which would make incredible sense would be to open an IRA. This would accomplish two things: start your savings for retirement and give you a pot of money that you could use to buy a home in the future. In certain situations you can withdraw money from your IRA (traditional or Roth) to buy a home without penalty or taxation.

Next, for your credit being less than perfect you should take the steps necessary to improve your scores. Now this might seem obvious and a no brainer, but many people do not know how to improve their credit scores and report. If this is you you may want to start researching how to do credit repair. You can either do it yourself, or you can work with a company to it for you. Either way, knowing about the process will help you tremendously as you work to improve your scores.