Can I Use My Annuity To Buy A House May 2026

Most contracts have a "surrender period" (typically 5–10 years) where early withdrawals trigger fees as high as 20%.

Some providers allow you to borrow against your own contract value. can i use my annuity to buy a house

Must usually be paid back within 5 years, though some providers extend this for primary residence purchases. Most contracts have a "surrender period" (typically 5–10

The IRS offers a specific "penalty-free" exception for certain retirement funds. can i use my annuity to buy a house

You may be able to "pledge" a non-qualified annuity as collateral for a bank loan.

Loans typically avoid immediate taxes and surrender charges as long as they are repaid on time. 3. Using Annuity as Collateral

If you are under age 59½, the IRS typically charges a 10% early withdrawal penalty on the earnings portion. 2. Annuity Loan