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Thread: Residential Loan Timing

  1. #1

    Default Residential Loan Timing

    Hi,

    What is the window of opportunity to take out a residential TSP loan? Specifically, can you get the loan after the home has been closed on, and if so, for how long? I can most likely handle the transaction without tapping into the TSP, but I'd like to know the time frame just in case I have to tap into the 15yr loan just in case.

    Do you have 2 years from the time the home is purchased to get a longer term residential TSP loan?

    Thank you


  2.  
  3. #2

    Join Date
    Feb 2007
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    San Diego, CA
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    Default Re: Residential Loan Timing

    Quote Originally Posted by Fritz View Post
    Hi,

    What is the window of opportunity to take out a residential TSP loan? Specifically, can you get the loan after the home has been closed on, and if so, for how long? I can most likely handle the transaction without tapping into the TSP, but I'd like to know the time frame just in case I have to tap into the 15yr loan just in case.

    Do you have 2 years from the time the home is purchased to get a longer term residential TSP loan?

    Thank you

    https://www.tsp.gov/planparticipatio...anBasics.shtml

    The Loan has to be done during the purchase:
    A residential loan cannot be used for:

    • Refinancing or prepaying an existing mortgage
    • Construction of an addition to an existing residence
    • Renovations to an existing residence
    • Buying out another person's share in the borrower's current residence
    • The purchase of land only
    THIS IS WHERE I WOULD PUT SOMETHING TO REPRESENT MY THINKING, BUT THEN THEY SHOW UP!
    Tracker =
    100%- I Fund

  4.  
  5. #3

    Default Re: Residential Loan Timing

    Thanks. What does this part mean (see underlined)?

    Residential Loan Documentation


    When you request a residential loan you must complete the Residential Loan Agreement and submit it, along with any required documentation, before your loan can be approved. This form documents the costs associated with the purchase or construction of your primary residence.
    Documentation Requirements

    All Residential Loans

    All of your documentation must:

    • Be from a third party (that is, someone who is selling the home to you or building it for you)
    • Be dated no more than 24 months before the expiration date on the TSP Loan Agreement

    It must also show:

    • You or your spouse as the purchaser or builder
    • Purchase or construction price
    • Full address of the primary residence

  6.  
  7. #4

    Join Date
    Feb 2007
    Location
    San Diego, CA
    Posts
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    Default Re: Residential Loan Timing

    Quote Originally Posted by Fritz View Post
    Thanks. What does this part mean (see underlined)?

    Residential Loan Documentation


    When you request a residential loan you must complete the Residential Loan Agreement and submit it, along with any required documentation, before your loan can be approved. This form documents the costs associated with the purchase or construction of your primary residence.
    Documentation Requirements

    All Residential Loans

    All of your documentation must:

    • Be from a third party (that is, someone who is selling the home to you or building it for you)
    • Be dated no more than 24 months before the expiration date on the TSP Loan Agreement

    It must also show:

    • You or your spouse as the purchaser or builder
    • Purchase or construction price
    • Full address of the primary residence
    That pertains to the any loan docs, property assessments, etc pertaining to the property itself.
    THIS IS WHERE I WOULD PUT SOMETHING TO REPRESENT MY THINKING, BUT THEN THEY SHOW UP!
    Tracker =
    100%- I Fund

  8.  
  9. #5

    Default Re: Residential Loan Timing

    Thanks, the regs made it seem like they'll give you the residential loan as long as the home wasn't purchased more than 2 years earlier.

    Title 5 § 1655.20

    Residential loans.(a) A residential loan will be made only for the purchase or construction of the primary residence of the participant, or for the participant and his or her spouse, and for related purchase costs. The participant must actually bear all or part of the cost of the purchase. If the participant purchases a primary residence with someone other than his or her spouse, only the portion of the purchase costs that is borne by the participant will be considered in making the loan. A residential loan will not be made for the purpose of paying off an existing mortgage or otherwise providing financing for a primary residence purchased more than 2 years before the date of the loan application.

  10.  
  11. #6

    Default Re: Residential Loan Timing

    Update: I just called the TSP people. You can buy the house and then get the 15yr residential loan as long as it is within 2 years.

    Thanks,

  12.  
  13. #7

    Join Date
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    OKC OK
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    279

    Default Re: Residential Loan Timing

    Great information Fritz. Thanks for sharing

  14.  
  15. #8

    Join Date
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    Default Re: Residential Loan Timing

    Quote Originally Posted by Fritz View Post
    Update: I just called the TSP people. You can buy the house and then get the 15yr residential loan as long as it is within 2 years.

    Thanks,
    Thanks,

    I called and got different information. Did you get a customer representative #? I want to be able to quote who said yes!

    Great work though!
    THIS IS WHERE I WOULD PUT SOMETHING TO REPRESENT MY THINKING, BUT THEN THEY SHOW UP!
    Tracker =
    100%- I Fund

  16.  
  17. #9

    Default Re: Residential Loan Timing

    I didn't get a name or rep #. I expect to buy a home soon as I am relocating back from overseas. I'll make sure to firm up that guidance before acting on it. We all know that if things go sideways with bad information, saying "Well Sally told me I could" won't give you a lot of traction.

    It seems to make sense to allow an extended window for the residential loan. I could see a lot of situations where a housing transaction could take place with a new build or a especially a foreclosure or a home that needs a lot of work where the cost could go up following in the months following the transaction such as if someone buys a house and then finds a major structural problem that costs a ton to fix. The TSP people probably don't want to get into a situation where they have to evaluate the merits of individual requests so they added the extended window.

    The TSP site should make it a bit clearer.


  18.  
  19. Default Any Updates?

    I know this thread was going awhile back, but did anybody happen to get confirmation of whether or not you can eat a residential loan after you've already closed on the house? (Assuming its within that 2 year timeframe)

    Thanks!

  20.  
  21. Default Re: Residential Loan Timing

    Hi! Did you ever hear/find out anymore about whether or not they will indeed allow a residential loan after the home has already been closed on (assuming it's within the 2 years)?

  22.  
  23. #12

    Join Date
    Feb 2007
    Location
    San Diego, CA
    Posts
    6,952

    Default Re: Residential Loan Timing

    I have not.

    But I will try again!

    Sorry, thanks for keeping me honest.....Since I just moved! I should have asked!
    THIS IS WHERE I WOULD PUT SOMETHING TO REPRESENT MY THINKING, BUT THEN THEY SHOW UP!
    Tracker =
    100%- I Fund

  24.  
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