Residential TSP Loan

[emars]

I am looking some information about getting a residential loan after I have already closed on my house (I know I have a 2 year window to this). I am trying to find out if I am limited to strictly the amount I paid out of pocket for closing costs or if I can get more than that amount. For example if closing costs were only 5k can I borrow 10k. (I am eligible to borrow more than that according to the tsp website so that isn't an issue) Also I am trying to find out if it really takes the full 3 weeks for processing and deposit or is that is an exaggerated time frame they give you incase it takes it longer than usual. How long did it take you to get your deposit? I would appreciate any insight, Thank you.

[evilanne]

See TSP Loans: https://www.tsp.gov/PDF/formspubs/tspbk04.pdf

You may want to call TSP and clarify the time line (make sure you document the call, date & time, name of the person you talk to and info provided). If you can process online it can be done more quickly but if there is anything wrong with any documentation it could actually take longer. I haven't taken a residential loan recently but based on partial and full withdrawals, time lines can vary and they are very much sticklers to their rules. Make sure you follow TSP guidance.

[robika]

FYI, if you have a spouse it doesn't matter you if process it online or not, you have to send in a notarized document that states that he/she understands what you are doing, and therefor it becomes a snail mail processing timeline.

[kohliekohl]

I did a residential loan 10 years ago and it was pretty easy, did the request online and mailed in documents. I had to do the notarized form for my spouse and sent in a copy of the purchase agreement, and that was pretty much it. Didn't have to explain anything or talk to a live person. If i remember right it took less than two weeks and the money was in my account. Hope this helps

[mindofmush]

TSPallocation.com has some very good advice about TSP loans at

http://www.tspallocation.com/tsp-loan-guide/

It's worth looking at even if only to provide yourself with a logical justification for something that affects your future.