Tsp loan for closing costs?
Moderator: Aitrus
Tsp loan for closing costs?
Hi. I was just wondering if anyone has used a tsp loan for closing costs on a house purchase? Is it a 10k limit? We may try to purchase a home prior to sale of our current home, which we have equity in and I just want to make sure we have some extra cash on hand in the interim. From what I read, I should be able to quickly pay back the tsp loan in a lump sum once our current place sells? Is the only difference between the general loan and residential loan the potential payback length (5 vs 15 years)? If so, wouldn’t a general loan get approved much more quickly? Are there down sides to doing a general for a home versus residential? For those who have done this before, any things you would do different?
Re: Tsp loan for closing costs?
You need to read up on the TSP loans pdf booklet. Extremely informative.
No, there is not a 10k limit. The limits are like this:
1. If you have over 10k but less than 20k (VESTED balance), then your limit is 10k.
2. If you have over 20k, then your limit is 50% of your VESTED account balance.
3. The maximum is 50k.
This is why you should read the tsp loan brochure, the above is spelled out well.
I have used TSP loans 3 times now for real estate. No regrets.
No, there is not a 10k limit. The limits are like this:
1. If you have over 10k but less than 20k (VESTED balance), then your limit is 10k.
2. If you have over 20k, then your limit is 50% of your VESTED account balance.
3. The maximum is 50k.
This is why you should read the tsp loan brochure, the above is spelled out well.
I have used TSP loans 3 times now for real estate. No regrets.
Owner/creator of TSPcalc.com - "Know your numbers"
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