<prompt> Human: Ok, I recently purchased a house and would like to take out a TSP loan to pay for some remodeling work, about 10k. I am 30 years old with about 120k in my TSP. I maxed it out for most of my career because I wasnt spending a lot of money and it seemed like the best option. Other than normal cost of living, I dont have any major debts except a 150 a month car payment and my mortgage. I feel comfortable that I could pay back the loan on the home improvement in about 1 year or so. Is the only negative that I will lose the compound interest on my TSP over the course of that year? It seems that losing interest on less than 10 of my TSP would be worth the renovations.The background is I own a duplex and recently renovated the small side. I need to renovate the large side before I move in. I know people say to wait to save the money but I just want to live in the house I bought.  <response>: Hello, I worked with few clients who were invested in TSP, myself included. A TSP loan is not an uncommon thing, and I have came across few people who have used it to buy their first house, finance a business or when in financial need.In your case, you will only qualify for General Purpose Loan GPL. Unfortunately, home renovations are not qualified under residential loans which have somewhat better terms. With the GPL loan you have a 5 year max time to repay, and you practically repay back into your account. The downside is you have less funds to compound interest on, but still you will find TSP loan interest rates to be more favorable then your local banks. Also, there is a small Admin fee for a TSP loan which is only 50 I believe. Here is a link from TSPs webpage that explains your option in details. -Bobby 