TIAA Bank is a massive company with more than one trillion dollars in assets as of June 2019.
Despite the company’s fifty-state reach, TIAA remains a community-based banking organization and has donated millions of dollars to charities, smaller community banks, and other causes. It is consistently ranked high by business associates and employees alike.
The bank offers a wide variety of services from home purchases and equity to refinancing options, checking, savings, and credit accounts, along with wealth management services and investment opportunities.
TIAA Bank offers many competitive loans and refinancing options for potential homebuyers. Among its offerings is doctor mortgage loan program for medical professionals, who have different financial needs from the majority of the population due in large part to mountains of student debt.
The bank offers loan options free from private mortgage insurance (PMI) for fellows, residents, and practicing physicians alike, but has different rates for each. For fellows and residents, loan amounts are available for up to $2,000,000. Practicing physicians have loan options starting at $200,000 with additional loans at up to $1,500,000 for single-family homes and up to $2,000,000 for two-unit properties. These loans can be used to purchase a new home or to refinance existing homes, but no loan options come with 100% financing.
Borrowers are permitted to close up to sixty days before they begin their new jobs if they need to, giving them time to transition jobs and adjust to a new space, moving in properly before the new job actually starts.
Eligible practitioners include Doctors of Dental Surgery (DSD), Doctors of Dental Medicine (DMD), Medical Doctors (MD), Doctors of Osteopathic Medicine (DO), and Doctors of Veterinary Medicine (DVM). However, if a borrower completed their residencies more than ten years ago, they are not eligible for any loans within this physician mortgage loan program.
No PMI required
TIAA Bank requires no private mortgage insurance (PMI) for its loans. This means that borrowers will be able to save hundreds and hundreds of dollars each month that they can invest in repaying student debt, home loans, or any other bill they may need to cover. PMI is in place to protect banks and lenders in case a borrower misses or defaults on their loan repayment, but the same insurance doesn’t really protect the borrower. Instead, it increases their original home loan debt by approximately 20%, causing them to be trapped under debt and repayment plans for a much longer time period when they could, instead, be investing that money in their futures.
High online review ratings
TIAA Bank has a solid reputation that is supported by business associates and employees alike. But beyond those who have intimate, personal dealings with the bank on a day-to-day basis are other companies and reviews who see the value of the banking organization for what it is. Nerdwallet, a reputable online resource, ranks TIAA Bank at 4/5 stars in their review of the bank’s checking, savings, and CD accounts. Bankrate gives TIAA 4.4/5 stars on their site where they laud the bank for its full-service online bank and competitive deposit yields.
Widespread service area
With locations in all fifty states and Washington D.C., TIAA Bank has an enviable service range. They are uniquely equipped to cater to the needs of people from all over America, rather than being limited to a specific state or region. This allows them to be physically present for a larger portion of the population than most banks are able to reach. That, paired with the organization’s stellar reputation, allows the bank to rise above competition time and time again because they are located in every state and meet people where they are thanks to their strong online banking presence.
No 100% financing options
100% financing options promise borrowers no down-payment mortgage loans, so by not providing this option, borrowers are more limited in which loans they can pursue. With 100% financing, families who may not otherwise be able to afford home loans are able to begin investing in their permanent residences. This can promote the economy within the housing market and set families up for success with their homes. By not providing 100% financing, families with less available cash are not able to purchase homes. This can be especially difficult for doctors who already have heavy financial burdens from years and years’ worth of heavy student debt.
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Jack is the Head of Content Marketing at LeverageRx, the personal finance company that simplifies how healthcare professionals shop for financial products and services. A Creighton University graduate and former advertising creative, he has written extensively about topics in personal finance, work-life, employee benefits, and technology. His work has been featured in MSN, Benzinga, TMCNet, StartupNation, Council for Disability Awareness, and more.