The 10% penalty is waived, but you on the full withdrawal amount. Roth IRA :
You can withdraw your (the money you put in) at any time for any reason tax- and penalty-free.
If married, you and your spouse can each withdraw $10,000 from your respective IRAs for a combined $20,000.
If the deal falls through, you can return the money to the IRA within that same 120-day window to avoid taxes and penalties. Traditional IRA :
: You qualify if you (and your spouse) have not owned a primary residence in the past two years .
: You must use the withdrawn funds within 120 days of receiving them.