House Loan Question

[Marbas]

I apologize if this question has already been asked...

To make a long story short, I am purchasing a house. I need to borrow approximately $15,000 to $17,000 for closing, etc. Am I able to round up the loan request to say $20,000 to be safe and put back any extra right away or will TSP think if I only end up needing $16,500, I can't borrow $20,000 and turn down the loan. How exact do you have to be when requesting on a home loan?

Thanks!

 

[gronk007]

I would call them and ask that question. I took a loan several years ago and seem to recall having to send a copy of the final settlement doc.

 

[Frixxxx]

I apologize if this question has already been asked...

To make a long story short, I am purchasing a house. I need to borrow approximately $15,000 to $17,000 for closing, etc. Am I able to round up the loan request to say $20,000 to be safe and put back any extra right away or will TSP think if I only end up needing $16,500, I can't borrow $20,000 and turn down the loan. How exact do you have to be when requesting on a home loan?

Thanks!

If you are looking to cover $20K for your closing, I would take a general purpose loan. It is under the $50K and the only requirement is that your spouse sign off on the documentation. Then determine how long you want the loan to last. TSP only cares that you meet the requirement of paying the loan back based on the installment plan you agreed to. Other than that, they only care that if you go outside the agreement that you pay any penalties required by law.

 

[OBGibby]

I thought the residential loan was only for the actual purchase of the home, not specifically for closing costs, but that's not based on any first-hand knowledge...(If you're going to use a loan to cover closing you may have to disclose that on your mortgage loan application as well.) I agree with Frixxxx, use the general purpose loan for that low of an amount.

 

[mayday]

https://www.tsp.gov/PDF/formspubs/oc96-16.pdf

 

[mayday]

https://www.tsp.gov/PDF/formspubs/oc96-16.pdf

https://www.tsp.gov/PDF/formspubs/tspbk08.pdf