We need to move. Will be second house we've purchased. Talking aloud to make it make sense….or not make sense.

    Current house balance owed: $375k. Comps are $625k. Will easily walk away with $200k.

    New house: $650k financed with builder preferred lender at 4.75%. Using VA (100% P&T) for the first time, zero down. (720 FICO, household gross $225k/yr)

    TSP Balance: $210k.

    Consumer debt: $85k.

    Idea is to use the TSP loan to pay down the $85k consumer debt down to $35k. I have cash to knock the remaining $35k down to $10k.

    (Current house sells, immediately pay off the TSP loan)

    Will taking the TSP loan reflect negatively when applying for the new home loan? Obviously the loan officer will see the TSP statement and the loan, but is having that TSP loan increasing/decreasing the the loan opportunity versus just carrying the consumer debt through until the current house sells? Which has the least amount risk for approving the loan?

    [WIll post in Veterans sub too]

    TSP Loan to pay off/down consumer debt to increase home loan approval?
    byu/CooCooEgg inMilitaryFinance



    Posted by CooCooEgg

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