FHA Tip of the Week!!

[DallasLoanGuy]

401(k) loans:

- Do NOT get counted in DTI.

- ARE acceptable sources of down payment

We simply reduce the balance of your 401(k) in calculating reserves. A lot of people get this wrong.

[Anonymous]

Please clarify, I work for the Federal Reserve and we have a Thrift Plan in which I'm 100% vested in.  Does this work in the same manner as a 401K? I was considering doing exactly the same thing and take a loan to supplement my downpayment.  

[Anonymous]

Thanks for trhe tip Dallas!

[DallasLoanGuy]

Hogg, Never run into that particular fund, but if you can borrow from it and pay back with payroll deductions I see no reason why not.

Ask your loan officer about it.... If they hesitate, you don't have an FHA pro.

[Lel]

Hogg, you're referring to federal government's Thrift Savings Plan (TSP), correct?  If so, then you can take loans from the plan just like a non-TSP 401(k).  You cannot take out any matching contributions or earnings on those employer contributions, though.

[Anonymous]

Great! 

So given that I can use a loan from my TSP to fund my downpayment on an FHA loan without impacting my DTI, my next question would be when would I then need to have the funds by? Will I need them prior to the application or can I advise the Loan Officer of my intentions and have the funds in time for closing? These are Month-End transactions and will need to time the request properly.

thanks for indulging me...

[mauve]

BTW, I know this is slightly off-topic, but what are the current FHA score guidelines?  I've heard they've been fluctuating.

[DallasLoanGuy]

The TSP for Texas Teachers can not be borrowed against..... bummer.

Mauve, 620 still king. Some went to 640 and still a couple below 620.... but hard deals to get.