: 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.
: 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 can i borrow from my annuity to buy a house
: If you fail to repay the loan on time, the IRS may reclassify it as a "deemed distribution." This means the balance becomes taxable as ordinary income. : If your provider doesn’t offer direct loans,
: Many experts consider borrowing from an annuity a "last resort" due to the high cost of fees and lost compound interest. can i borrow from my annuity to buy a house