Loan down payment


Q. I am a FERS employee eligible for a TSP residential loan of $23,000. If I request this amount for a primary-residence home purchase, would my down payment and closing cost need to be at or above this amount of $23,000 on my signed purchase contract? Not sure if I will put down 5 percent (13K) or 10 percent (26K). If I put 5 percent on purchase contract, will TSP decline the request for the full $23, 000 loan? I don’t want to write 10 percent on purchase contract if I am not going to put quite that much down, however I’m worried if I only say 5 percent that the loan won’t be approved for $23,000. Can you please explain? I could not find anything in the loan documents on this topic.
A. Residential loan limits are not related to the amount of your expected or actual down payment. This information is not even required to approve your loan.


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Mike Miles is a Certified Financial Planner licensee and principal adviser for Variplan LLC, an independent fiduciary in Vienna, Virginia. Email your financial questions to and view his blog at

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