TCF Financial Corporation is a Detroit-based, premier Midwest Bank that offers a wide variety of services to its customers.
The bank has approximately 475 centers across 21 States, but it’s primarily located in Midwestern states including Michigan, Illinois, Minnesota, Ohio, South Dakota, and Wisconsin.
The bank serves customers with consumer and commercial banking needs, as well as those seeking help with trust and wealth management, speciality leasing and lending, and various small and commercial businesses. TCF Bank also offer physician mortgage loans, which is the primary focus of this company review.
TCF Bank physician mortgage loan program details
TCF Bank offers clients a wide variety of loan options for customers including personal loans, home loans, and credit-building options. Also covered in its range of loan options is its doctor loan program. It’s designed specifically for healthcare workers — from physicians to chiropractors and veterinarians.
TCF’s physician mortgage loan currently offers 0% Down financing up to $1,000,000, 5% Down financing up to $1,500,000, and 10% financing for $2,000,000-$2,500,000. Additionally, options are available at 90% for the financing of second homes up to $1,000,000 and 80% for homes up to $1,5000,000. A cash out refinance is also available at up to 80% of the loan’s value, and larger loan amounts may be considered.
The program currently offers five, seven, and ten-year adjustable-rate mortgages for 15 and 30-year fixed-rate loans, and if you qualify for this loan, you don’t have to worry about any kind of down payment or private mortgage insurance before taking out the loan.
Previous student loan debt can be excluded if you’re in deferment 12 months past the original closing date, and you can use income from a fully executed, non-contingent employment contract 90 days prior to closing.
In order to qualify, you are required to have a FICO credit score of 700 if you pursue a 100% transaction, but lower scores may be considered if you pursue a program at 95% or less.
Eligible medical professionals include Doctors of Medicine (MD), Doctors of Osteopathy (DO), Doctors of Dental Surgery (DDS), Doctors of Dental Medical (DMD), Doctors of Chiropractic (DC), Doctors of Veterinary Medicine (DVM), Doctors of Pharmacy (PharmD), and Doctors of Osteopathic Medicine (OD).
Pros of financing your home with TCF Bank
No down payment required
Because you don’t have to pay a huge lump-sum up front as part of a down payment, you’ll be able to save the money you would have spent to pay off your loans faster. By not having a down payment, you have more financial freedom with your money and the ability to focus it where you need to the most instead of pooling resources for months in an effort to make the down payment.
No PMI is required
Private mortgage insurance (PMI) is a kind of insurance that conventional borrowers are often required to take out so that the lender--in this case TCF Bank--is protected if you stop making payments on your loan. Usually, it ends up costing you approximately 20% of the value of your home, which can be a huge sum of money. Fortunately, PMI is not required for TCF’s Doctor Loan, and you’ll be able to save that money to help you pay the loan back faster, or to invest it however you would like.
Online loan application process
While some banks have been struggling to meet demands during the COVID-19 pandemic, TCF has online application processes in place for their various loans, including the Doctor Loan, so that you can easily apply for it no matter where you are. The process is fairly straight-forward and doesn’t take a huge amount of time, so it’s a nice feature to have when pursuing one of TCF’s loans.
Cons of financing your home with TCF Bank
Limited service areas
TCF may conduct business across all 50 states, but the bank has very limited service options and is only physically located in a handful of states. Yes, the bank does offer online options, but not all of the products and services are available across all 50 states.
High credit score requirement
While most loans require a good credit score for an application to be accepted, TCF’s credit score requirement has increased over the past two years by twenty points. Where the minimum requirement used to be 680, it has jumped to 700 points making the loan harder to attain if you have any mistakes or bad credit history.
TCF, while not accredited by the Better Business Bureau, has had a long list of complaints filed against them with the Bureau. More than three hundred complaints have been lodged in the past three years, and approximately half of those were filed in the last twelve months. Currently, the bank has a D- rating from the BBB for failure to respond to complaints and for having multiple unresolved complaints. Further, the bank has a 1.9/5 star rating on WalletHub from more than one thousand reviews where customers, both current and previous, wrote about their frustrations dealing with customer service and online banking options offered by TCF.