Can you borrow against your annuity?

You can borrow from your annuity to put a down payment on a house, but you should be prepared to pay interest on the borrowed funds, fees, and possible penalties. In fact, when figuring a way to fund your down payment, borrowing from an annuity should be a method of last resort.

Can I take a loan against my annuity?

Annuities often require payment to be within six months of the loan start day and only allow a percentage of the annuity to be borrowed against. Request the loan paperwork if your annuity does have this provision and you are comfortable with the terms. When taking a loan against an annuity, it is similar to any other loan process.

How much can you borrow from an annuity?

The IRS limits annuity loans to 50 percent of your annuity balance or $50,000, whichever is less. If you are married, you will have to get your spouse to sign the annuity loan document, because borrowing from the annuity affects your spouse's future retirement as well as your own.

Can you borrow from an annuity for a down payment?

In fact, when figuring a way to fund your down payment , borrowing from an annuity should be a method of last resort. An annuity is a unique investment vehicle in that it is managed by a life insurance company rather than a traditional brokerage house.