TD Bank Physician Mortgage Review 2024

TD Bank’s slogan is that they are ‘America’s Most Convenient Bank.’ It’s one of America’s ten largest banks, with almost 10 million customers. TD Bank is a full-service bank offering personal, small business, and commercial services. One such service is the TD Bank Physician mortgage loan.

TD Bank is located throughout the Northeast, Mid-Atlantic, Florida, Carolinas, and Metro D.C. TD Bank also has a Private Wealth management service and vehicle financing branch.

TD Bank is a part of the TD Bank Group, headquartered in Toronto, Canada, and serves over 27 million customers.

TD Bank Physician Mortgage Loan Fast Facts

Here’s a quick rundown of the TD Bank physician loan program:

• Options for Financing: Doctors and other medical professionals can secure 100% financing on up to $750,000, 95% on up to $1,250,000, and 89.99% on up to $1,500,000.
• Physician Loan Product Options: TD Bank offers physician loans as either fixed or adjustable-rate, giving you options for mortgage financing.
• Loan Total Maximum: Borrowers can apply for a physician loan of up to $1.5 million.
• Need for Private Mortgage Insurance: TD Bank doesn’t require borrowers to pay PMI on physician loans, even with no down payment.
• State Availability: CT, DE, FL, MA, MD, ME, NC, NH, NJ, NY, PA, RI, SC, VA, VT, and Washington DC
• Eligibility: MD, DPO, DPM, DDS, DMD, and oral surgeons

TD Bank Physician Loan Qualifications

Every bank has different qualifying requirements for physician loans because the government or Fannie Mae doesn’t back them.

However, TD Bank is transparent about its requirements and resourceful in helping physicians buy a home despite having student loan debt or minimal assets.

• Credit Requirements: Borrowers need good or even excellent credit, especially if they need a loan amount higher than $750,000
• Down Payment: Borrowers don’t need a down payment for loans up to $750,000, 5% for loans over $750,000 but less than $1.25 million, and 10% on loans over $1.25 million up to $1.5 million
• Income: TD Bank accepts a future employment contract as long as it starts within 90 days, so you can either provide pay stubs for current/past employment or an employment contract for future employment
• Property Requirements: You can use the TD Bank physician mortgage on single-family homes, condos, PUDs, and in some markets, co-ops.
• Eligible Degree/Employment: To be eligible, you must be a practicing doctor or dentist with ten years or less out of residency, or a licensed medical or dental resident or fellow
• TD Account Holder: Borrowers must have an active and in good standing TD checking account
• Debt to Income Ratio (DTI): TD Banks works with doctors, residents, and fellows with high DTIs because of their student loan debt, enabling you to borrow money even with existing debt

How to Apply for TD Bank Physician Mortgage Loans

Understanding the application process before starting can make getting a physician loan with TD Bank easier.

1. Become Pre-Qualified

Getting pre-qualified is smart because it lets you know how much you can afford and what you might need to change if you want a higher loan amount. In addition, a pre-qualification only has a soft credit pull, so it doesn’t affect your credit score.

2. Required Underwriting Documents

Before applying for pre-approval, it’s important to gather the necessary documents, including the following:

• 30 days of pay stubs if already working
• W-2s and tax returns from the last two years
• Asset statements to prove assets for the down payment, closing costs, and any required cash reserves
• Employment contract if you haven’t started working yet
• Proof of identity (driver’s license, state ID)

3. Become Pre-Approved

When you’ve gathered your paperwork and are ready to look at homes, apply for pre-approval. This is an approval of your qualifying factors, not the property. But getting pre-approved shows sellers you can afford the property, enabling them to accept your offer.

The pre-approval is usually good for 60 to 90 days, so do this step when you’re ready to look at homes and make an offer.

If the pre-approval expires, you must go through the process again.

Your pre-approval will contain conditions you must satisfy, especially those pertaining to the property. It may also have personal conditions you must clear before closing the loan.

4. Confirm and Lock In Your Rate

After you find a home and execute the sales contract, lock your interest rate. You can’t close your loan until you’ve locked in a rate. Work with your loan officer to determine the best time to lock your rate, so you get the most affordable option for your loan.

TD Bank Physician Loan Refinancing

TD Bank physician loans are also eligible for refinancing if you already have a loan on your property.

If you have a current mortgage loan with a higher interest rate or unfavorable terms, you can use the TD Bank physician loan to refinance it.

For example, you might consider refinancing if you can get a lower rate now because you have improved your qualifying factors.

You can also refinance out of an adjustable rate loan into a fixed rate loan for more predictability, or you can refinance to lower your monthly payment if you owe less now.

6 TD Bank Physician Mortage Alternatives

Here are some alternatives if your qualifications don’t make you eligible for a TD Bank physician loan:

1. Huntington Bank
2. BMO Bank
3. Citizens Bank
4. Flagstar Bank
5. KeyBank
6. Bank of America

1. Huntington Bank Physician Mortgage Loans

Huntington Bank offers more flexibility with its physician loan program, offering 100% financing on up to $1 million but requiring a 5% down payment on loans up to $1.25 million and 10% on loans up to $2 million.

You’ll need at least a 700 credit score, but if you want to borrow over $1 million, you’ll need a higher score.

2. BMO Bank Physician Mortgage Loans

BMO Bank offers a great physician loan program, but you’ll always have a down payment. Unfortunately, they don’t have a 0% down payment option like TD Bank.

Borrowers must have at least 5% down on loans up to $1.5 million and 10% on loans over $1.5 million up to $2 million.

BMO is flexible with debt-to-income ratios for doctors, residents, and fellows, and they don’t require a specific amount of time for income history. In addition, like TD Bank, they’ll accept an employment contract as long as employment starts within 90 days.

3. Citizens Bank Physician Mortgage Loans

Citizens Bank has a physician loan program for doctors and dentists. You’ll need at least 5% down on your loan, but you can use the program on a primary residence or second home.

However, Citizen Bank has stricter loan limits. If you aren’t out of residency yet, you can borrow up to $600K, and if you’re an attending physician with at least one year of experience, you can borrow as much as $3 million.

4. Flagstar Bank Physician Mortgage Loans

Flagstar Bank offers its physician mortgage program to most doctors. However, it’s not restricted to only MDs and DOs. They also open it up to NPs, DPMs, PAs, and DVMs.

You can only use the Flagstar program on your primary home but don’t need a down payment. However, if you have a credit score below 720, you may still qualify, but you’ll need a down payment and a loan limit of $1.5 million.

5. KeyBank Physician Mortgage Loans

KeyBank offers some of the highest loan limits from any physician loan program, but you’ll need a down payment. The only way to get a loan with no down payment from them is to borrow $1 million or less; otherwise, you’ll need as much as 15% down.

You can use the program on a primary or secondary home and on most property types.

6. Bank Of America Physician Mortgage Loans

Bank of America helps doctors and other medical professionals get mortgage financing before they start their job. You can apply with an employment contract starting in the next 90 days.

Bank of America excludes your student debt from your debt-to-income ratio and requires the following down payment amounts:

• 3% on loan amounts up to $850,000
• 5% on loan amounts up to $1 million
• 10% on loan amounts up to $1.5 million
• 15% on loan amounts up to $2 million

The program is open to practicing doctors, dentists, fellows, and residents.

Pros and Cons

Understanding the pros and cons of the TD Bank physician loan can help you decide if it’s right for you.

Pros

• No PMI on any loan amount
• Options to choose a fixed or adjustable rate
• You can apply with only an employment contract

Cons

• The loan program isn’t available nationwide
• You need a down payment if you borrow over $750,000
• Only open to doctors less than ten years out of residency

Frequently Asked Questions

Do physician mortgage loans work differently across states?

Every bank has different requirements for physician loans, and since any government agency doesn’t back them, each bank can set different guidelines. So you might find different requirements throughout the country, but it’s usually because not all lenders work nationwide.

Do doctors get better rates on mortgage loans?

Doctors can get competitive rates on mortgage loans, but they are usually in line with what everyone else gets. The difference is that doctor loans are usually for much higher loan amounts than traditional ones, but they still get competitive rates.

Which physicians qualify for physician mortgage loans?

Each lender allows different doctors to use their program. Most are open to MDs and DOs, but many lenders open it to dentists, orthodontists, nurse practitioners, and specialty doctors.

Is a TD Bank Physician Mortgage Right for You?

A TD Bank physician mortgage may work well for most physicians if you live in the states where it operates.

You’ll need a down payment if you borrow over $750,000, but the highest down payment they require is 10%, so it’s affordable for most doctors. You’ll also need a TD Bank checking account, but anyone can open one quickly.

Compare the rates and terms available to physician loans from other lenders to determine if TD Bank is right for you.