TSP Loan Program: Who Qualifies and What You Get
Learn how active federal employees can borrow from their retirement savings to help purchase a primary residence.
This program allows you to take a loan from your retirement savings to help you buy a home for your primary residence.
Who it's for
This is available to active federal employees who have an existing TSP account.
What you get
You can borrow money from your own retirement funds to assist with the purchase of your primary home.
What it costs you
You will have to pay a one-time fee to process the loan. The interest you pay on the loan goes directly back into your own account rather than to a bank.
The catch to know
If you leave federal service, you must repay the loan quickly. If you do not, the remaining balance may be treated as a retirement withdrawal, which can lead to taxes.
How to apply
- Verify that you are an active federal employee with a TSP account.
- Check the current interest rates and fees through your account provider.
- Follow the application instructions provided by your plan administrator.
- Visit the official portal for your specific account details to complete the process.