I've been planning to save some money to buy a house in the next few years. I am 21 and working on building a solid credit score. Additionally, I've been investing some money with Lending Club (peer to peer lending). They have the option of IRA investment accounts. From what I understand, these accounts are tax free. Also, I hear that you are allowed to contribute up to $5,000 a year to an IRA, and you are able to pull out $10,000 for your first home. So my question is:
Should I create an IRA account and fill it up to $10,000 mark for my first home purchase? Should I use a traditional IRA or Roth IRA for this?