Can I Borrow From My Annuity To Buy A House May 2026

: While your money is "borrowed," it isn't earning the interest or market returns it would have otherwise, which can shrink your retirement nest egg.

: If your provider doesn’t offer direct loans, you might be able to use the annuity as collateral for a loan from a bank or third-party lender. can i borrow from my annuity to buy a house

: If you are under age 59½ and your loan is reclassified as a distribution, you could face an additional 10% IRS penalty . : While your money is "borrowed," it isn't

: If you choose to withdraw money instead of borrowing it, you might be hit with heavy surrender charges (sometimes as high as 7–20% ) if you haven't held the contract long enough. Exceptions for First-Time Homebuyers : If you choose to withdraw money instead

: Some annuity providers allow you to borrow against your contract's cash value, often up to 50% or a maximum of $50,000 .