Can TSP residential loan be used for closing costs?
There are 2 types of loans available through the TSP; the residential and the general-purpose loan. The residential loan is available to assist in putting together the required funds for a down payment or to help pay for closing costs on a home purchase. A general-purpose loan can be paid back for up to 5…
There are 2 types of loans available through the TSP; the residential and the general-purpose loan. The residential loan is available to assist in putting together the required funds for a down payment or to help pay for closing costs on a home purchase. A general-purpose loan can be paid back for up to 5 years.Click to see full answer. Keeping this in view, what can a TSP residential loan be used for?There are two types of TSP loans: General purpose: Can be used for any purpose, do not require documentation and have a repayment term of 1 to 5 years. Residential loans: Used only toward the purchase or construction of a primary residence. They require documentation and have a repayment term of 1 to 15 years.Furthermore, should I use a TSP loan for down payment on home? Using Your Funds to Buy a House Borrowing against your TSP contributions can be an easy way to come up with a down payment and closing costs for your first home. The loan is limited to the funds that you have contributed to your TSP account – not matching funds from your agency or service – and any accrued earnings. People also ask, what is needed for TSP residential loan? To be eligible for a loan, you: Can only have one outstanding general purpose loan and one outstanding residential loan from any one TSP account at a time. Must have at least $1,000 of your own contributions and earnings in your TSP account (agency contributions and earnings cannot be borrowed).Is taking a TSP loan a good idea?It appears that TSP loans do have a place. If you need a loan, but don’t have any options, then a TSP loan makes sense. However, the dangers of borrowing money to earn a better investment still exist. They’re actually even more substantial than if you used a more traditional means, such as a HELOC.
