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Yes, federal allow allows this type of borrowing, though the amount you can borrow is limited. If you are purchasing your principal place of residence, have been approved for a mortgage and are vested, you can borrow a sum between $1,000 and $7,500 to pay the down payment or closing costs. However, the amount of your loan cannot exceed 1/2 of the present value of the pension you have earned when you apply for the loan.
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