Should I borrower from my TSP?
We work with a lot of active duty members that are navigating the process of selling their current house while purchasing their next home. It's great when you close on the sale of your current home before closing on your next house-- but that can be difficult to line up.
f you can qualify for both payments, but are tight on cash to close -- a loan from your TSP could be the ticket.
This could also allow you to submit offers that aren't contingent on your current home sale. You must be currently employed as a federal civilian employee or member of the uniformed services to take advantage of the loan feature. The general purpose loan requires no documentation, has a $50 processing fee and can but for terms up to 60 months. You repay yourself with interest at the G fund rate (currently 5.75%).
I'd plan for at least 2 weeks-- but I hear it can be quicker. No prepayment penalty & it's not credit based so it doesn't impact your ratios. More details directly from TSP are linked here.
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