What Is TD Bank?
TD Bank describes itself as “America’s Most Convenient Bank.” This owes in large part to the fact that its bank branches are open more hours than the competition. Many locations are open seven days per week, including limited hours on Sundays.
TD Bank is a full-service financial institution, offering checking and savings accounts, certificates of deposit, credit cards, loans, and small business banking services.
Founded more than 150 years ago, TD Bank is headquartered in Cherry Hill, New Jersey, but operates a network of more than 1,100 branches and 700 ATM locations in 15 states on the U.S. East Coast. The Bank has a Better Business Bureau rating of “A-“, the second highest rating on a scale or A+ to F.
One of the 10 largest banks in the U.S., TD Bank is a subsidiary of the Toronto-Dominion Bank of Canada, serving millions of customers across the globe. Its significant presence in the U.S. East Coast, with over 1,100 branches and 700 ATM locations, makes it a preferred choice for many customers.
TD Bank Physician Mortgage Highlights
TD Bank offers a specialized mortgage product for medical professionals, including practicing physicians, dentists, and oral surgeons, along with licensed medical or dental residents or fellows. This program is specially tailored to cater to the financial needs and circumstances of medical professionals, often burdened with substantial student loan debt.
The program is available for medical professionals who are no more than 10 years out of residency. Applicants are also required to have a TD Bank checking account in good standing.
To note, TD’s doctor loan program is available for self-employed medical professionals who have been in business for a minimum of two years.
- Available for purchase or refinance
- Primary residence only
- Single family, condo, PUD, co-op
- 100% financing up to $750,000
- 95% financing up to $1.25 million
- 89.99% financing up to $1.5 million
As with other doctor home loan programs, if you are still a resident, TD Bank will require a signed contract for new employment. There is no mortgage insurance requirement and debt-to-income ratios are very flexible given the nature of the medical industry. The TD Bank physician mortgage is only available in the following states (15):
Key Features of TD Bank Physician Mortgages
TD Bank’s physician mortgage loan comes with some unique features that make it attractive for medical professionals:
Flexible Down Payments: TD Bank offers 100% financing up to $750,000. This means you can purchase a home without having to worry about a down payment.
No Private Mortgage Insurance (PMI): Unlike most conventional mortgages, TD Bank’s physician mortgage doesn’t require PMI, which can result in significant savings.
Flexible Debt-to-Income (DTI) Requirements: TD Bank understands the financial pressures of medical professionals and offers flexible DTI requirements.
Various Property Types: This mortgage can be used to finance various types of properties, including single-family homes, condos, co-ops, and planned unit development residences.
TD Bank Physician Mortgage Alternatives
When you’re borrowing hundreds of thousands of dollars, you should always want to know your options. Here’s a few that LeverageRx would recommend:
Huntington
Huntington Bank has a larger footprint than TD and offers physician mortgages to veterinarians, as well as physicians and dentists. They also provide up to 100% financing of up to $1 million, 95% up to $1.25 million, and 90% up to $2 million. Like TD Bank, physician loans apply only to primary residences.
Learn More: Huntington Bank Physician Loan Review
Bank of America
Bank of America a nationwide lender offering physician mortgages in nearly every state. The bank offers financing of up to $1 million with 5% down, and 10% down up to $1.5 million. Like TD, however, you will face stricter underwriting practices and limited designations.
Learn More: Bank of America Physician Loan Review
TD Bank Physician Mortgage Pros and Cons
Whatever lender you choose for your mortgage, there will be pros and cons to consider.
Pros
- Both fixed rate and adjustable-rate mortgages (ARMs) available
- Full-service bank with several cross-over products such as credit cards, checking, savings, investment tools, small business banking, etc.
- Long history of catering to medical professionals
Cons
- Limited designations
- Limited state coverage
- Primary residence only
- No construction financing available
- Bigger banks means stricter underwriting
Click here to get a quick, free comparison of doctor loan programs
TD Bank Programs for Healthcare Practices
If you own your own practice, TD Bank also offers a number of solutions to finance your business needs. For example, you can get financing of up to $12 million with 100% practice financing, plus working capital, for physicians, dentists, eyecare professionals, and veterinarians.
Financing purposes can include practice acquisition, practice debt refinancing, partnership buy-ins and buy-outs, equipment purchases, real estate purchases or practice expansion (remodeling).
Related: U.S. Bank Medical Practice Financing Review
Is TD Bank Physician Mortgage the Right Home Loan for You?
TD Bank can be the right choice if you live in one of the 15 states where they operate. It’s also an excellent choice if you are either looking for business services for your practice, or the personal banking services TD Bank offers.
The TD Bank physician mortgage has several advantages over conventional home financing. They will provide 100% financing up to $750,000 and 95% up to $1.25 million, neither of which is available with traditional home mortgages.
But perhaps the biggest advantage offered by the program is the absence of PMI. This is a type of mortgage insurance coverage required by traditional lenders whenever a borrower makes a down payment of less than 20% of the purchase price, or has less than 20% equity for a refinance. A physician mortgage with TD bank can save you hundreds of dollars each month on PMI.
Key Takeaways
While TD Bank’s physician mortgage offers many advantages, it’s essential to weigh these against the potential drawbacks. Remember to explore all your options – working with a physician mortgage broker like LeverageRx can greatly simplify this process.
TD Bank can be an excellent choice for physician mortgage loans because they offer lending programs customized for medical professionals early in their careers. TD Bank also offers valuable business and personal banking services.
There is no single answer to this question. While doctors are considered better lending risks than most other professions, the customized nature of physician mortgages often include more moving parts. For example, the lender may charge a slightly higher rate to a doctor since private mortgage insurance is not required. That’s why it’s important to shop between several lenders offering this or any other type of mortgage financing.
As is typical with mortgage lending, you should expect the process to take between 30 and 45 days from application to closing. If you’re a W-2 employee, processing time will be closer to 30 days. But if you’re self-employed, it’ll be on the longer end of the range.
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