text: how do you buy a house tax free using a self directed ira? please list the detailed steps. i only have $9000.  in my roth ira. i think you just tell the company who holds your ira that you are wanting to buy a home and you would like to use your money in your ira to put a nice down payment on one & they should be able to fill out a 1099 form (i think that is what they call that form-it is either 1099 or 1098) showing that that money is not taxable income.