TSP Loan for down payment - turnaround time

[elspouse]

Am looking to buy a house and want to fund part of the down payment with a TSP loan. I need it more as a bridge (expect to repay within 2 years) but may want to take it as a residential loan as the lender does count the payments against my D-I ratio so longer repayment period means lower D-I. I'm married so need to submit the loan app on paper with spouse's signature.

I was wondering how long, in setting a closing date, I should allow for receipt of the loan proceeds? Would it take longer if I'm applying for a residential loan because someone needs to also look over the sales contract to ensure I qualify for the loan?

Thanks for any info

[Scout333]

Am looking to buy a house and want to fund part of the down payment with a TSP loan. I need it more as a bridge (expect to repay within 2 years) but may want to take it as a residential loan as the lender does count the payments against my D-I ratio so longer repayment period means lower D-I. I'm married so need to submit the loan app on paper with spouse's signature.

I was wondering how long, in setting a closing date, I should allow for receipt of the loan proceeds? Would it take longer if I'm applying for a residential loan because someone needs to also look over the sales contract to ensure I qualify for the loan?

I used a residential TSP loan as a bridge a couple of years ago while waiting on our first house to close. Seems that it took about three weeks to process. Was able to fax some of the paperwork and selected EFT deposit as the option for receiving the money. You can get more info re TSP Loan Booklet. I remember it being a fairly stress free process. Just a tip. Pay back as quickly as you can. There are pretty significant tax costs if you leave government service before it is repaid. So, not too good for a long term loan. JMHO :) Good luck.

[elspouse]

Thanks for the info. We prepared the application online, then printed it out and faxed it in with supporting documentation on Thursday, July 30. The following day it was entered into the system with a "processing status." By yesterday (Tuesday 8/5), it showed as approved as of 8/4. Today the money was DD'd into my bank account.

So less than a week turnaround. I was told, however, that processing can take 7-10 business days and the direct deposit another 3-5.