Must usually be paid back within 5 years, though some providers extend this for primary residence purchases.

The IRS often views pledging an annuity as a "deemed distribution," which can trigger immediate taxes and penalties on the growth. ⚖️ Rules and Tax Implications First-Time Homebuyer Exception

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

Can You Use an Annuity to Qualify for a Mortgage? - FREEandCLEAR

If held in a retirement plan, you may borrow up to $50,000 or 50% of the balance (whichever is less).

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

Some providers allow you to borrow against your own contract value.

You can withdraw cash directly from the annuity's value to use as a down payment.