: Like any loan, you must pay back the principal plus interest. You may also face administrative fees from the provider. Risks and Consequences
Yes, you can often borrow from your annuity to buy a house, but it is a complex move with significant trade-offs.
: 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
: 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.