I want to take advantage of using a retirement account to purchase a home as a first time home buyer. If a relative transfers a house to me that is already paid for , am I still considered a first time home buyer ?

Hello W:

The status of the seller isn't the question.. It's YOUR status that makes you a first time buyer.

excon

And there is no such thing as a transfer, it is a purchase. If and when they sign the deed over to you, you have purchased it.

However, you have to pay fair market value. If you don't the IRS may look at part of the sale as a gift.