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The IRS offers a little talked about exception to the 10% penalty on early withdrawns from IRAs to help first time home buyers (which the IRS defines loosely as anyone who hasn't owned a primary residence in two years) use IRA funds without penalty. Of course, the regular tax would still apply, but it's an option to consider if it means the difference between getting into the real estate market while its low or watching the market come back up beyond your reach.