Saving for first time purchase

[Russell W.]

Hi all, I am new to the forums but have been browsing the site now for a couple months. Hoping to get some opinions/advice on a question I've been mulling over.

Over the next 15 months I will be saving for the first time purchase of a home (owner occupant, 3 flat). From what I have read, I will be able to take $10,000 out of my IRA as a one time distribution towards a first time purchase. Awesome! So I'm looking to raise another $10,000 towards a down payment.

Here's my issue; currently I have about 10k in student loans that I am paying off at about 5.5% interest. My question; do I try to pay these off as aggressively as I can, and first pay these off before saving towards that down payment? (I figure I cant get 5.5% in return on savings). OR, do I just make the minimum payment on the student loans and save the remainder of my excess money towards the down payment?

Any help is appreciated!