Should I cash out an IRA to purchase home?

I have an IRA which is only 12,500 yes this is all the retiremtnt I have right now. Me and my wife found a house we love and everyone tells us is a great investment. The question is, the 12,500 is not gonna make or break or retirment but the house might bring back a good return several years from now. What should I do.

We are in our mid 40's.

Can you tell us is it a ROTH IRA or Traditional IRA?

You can withdraw ROTH contributions without tax penalty for the purchase of a home, but not for a Traditional IRA.

If it is a ROTH IRA, you can certainly consider it. In essence, the purchase of a home is also an investment towards your retirement, especially if you expect the value of the home to appreciate.

You probably want to avoid a withdrawal and tax penalty for removing money from a Traditional IRA.

No!,cash is king wait till you see investors getting in market again.

Do not touch your IRA!! You will regret it later. If you can't afford the house without it, then look for a less expensive house (you never know if $12,500 will make or break your retirement).

Before cashing in and paying taxes on that money, talk to a LOCAL mortgage broker about your options to leave the IRA alone and purchase with what you have. Chances are options do exist that you simply haven't considered.

NEVER EVER CASH OUT AN IRA (until you're ready to retire, of course).. If you don't have the $$, then you don't have the $$. Start saving up until you DO have the money to buy a house.

Do not take money out of your IRA to buy the house. If you can't manage to save up money for a down payment on a house, you shouldn't buy a house. Yes, you love the house, but you will find another house you love when you can afford it.

It may not be a lot in your IRA right now, but it is ALL you have, as you said. Leave it alone.

I also recommend you read "Total Money Makeover" by Dave Ramsey.