AI responses may include mistakes. For financial advice, consult a professional. Learn more Can I Borrow from My Annuity for a House Down Payment?
: Many experts consider borrowing from an annuity a "last resort" due to the high cost of fees and lost compound interest.
The IRS may waive the 10% early withdrawal penalty for first-time homebuyers (up to a ). However, you will still owe regular income tax on the amount withdrawn.
: Some annuity providers allow you to borrow against your contract's cash value, often up to 50% or a maximum of $50,000 .
: Like any loan, you must pay back the principal plus interest. You may also face administrative fees from the provider. Risks and Consequences
