Considering home purchase – use money from retirement account?

Hi Brooke,

When considering a home purchase (I’m renting now), do you recommend pulling money out of a retirement account to help come up with the down payment? I have savings but not enough to cover the 20% down. Is it worth it to pull the remainder (about half of the down payment) out of my retirement account (and get penalized) or should I wait a year when I will have the 20% down in cash? I live in CA so its possible that in a year, the home prices will rise.