Thinking of a TSP Loan to fund Flip Down Payment

[Eric Villafana]

Good evening. Has anyone used a loan against their 401K or Thrift Savings Plan (TSP is 401K for government and military) as a down payment toward a Flip.

TSP will allow a loan against your balance with a 2% interest rate. The best part is that the interest paid is to yourself. There are two types of loans; General TSP Loan (12-60 Mo) and Real Estate (up to 15 Yrs).

The real estate TSP loan can only be used for a primary residence. However, the General TSP loan can be used for whatever you want.

Thoughts? Experiences?

Let me know! 

I look forward to some good info.

-Eric Villafana