The physician mortgage. A great option for young and indebted doctors to buy a home without the rigorous application criteria of a Conventional mortgage.
We've written about them before, and today we will again.
One of the most famous professional mortgage programs across the country is offered by TD Bank. Most known for the benefits it can offer physicians, the program is open to other types of healthcare providers too, like dentists and oral surgeons.
Is the TD Bank physician mortgage the best option out there for dentists? This post will answer this question. If you're not a doctor, check out our TD Bank mortgage review.
TD Bank's Medical Professional Mortgage
The TD Bank Medical Professional Mortgage is open to the following types of healthcare providers, including multiple types of dental providers:
Physicians, dentists, and oral surgeons (MD, DO, DPM, DDS, DMD)
Fully licensed medical residents/fellows
Fully licensed dental residents/fellows
Doctors or dentists that have owned their own practice
It includes many of the same benefits of other physician mortgages you may have considered, including no private mortgage insurance (PMI), flexible DTI requirements to help those with high levels of student loan debt, and access for those with signed contract offers for employment yet to begin.
The program allows doctors to purchase single family homes, condominiums, properties in planned unit developments (PUDs), and in select markets, co-ops.
Who is eligible for the TD Bank physician mortgage?
Access to TD Bank's Medical Professional Mortgage Program is contingent on meeting these acceptance criteria/requirements:
Buy a home as your primary residence
Be a banking client with a TD Bank checking account
Be within 10 years of completing with a residency
Be employed or have an offer for employment
You'll also need to live in a state where the bank operates.
At this time, those states are Connecticut, Delaware, Florida, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Vermont, Virginia, and Washington DC.
TD Bank loan terms and financing
The TD Medical Professional Mortgage offers both fixed and adjustable-rate options with the following financing available:
100% financing (no down payment) up to $1 million
95% financing up to $1.5 million
89.99% financing up to $2 million
Here's why this matters.
Such low (or even no) down payment requirements, in conjunction with relaxed debt-to-income criteria we already mentioned, mean that many indebted doctors, dentists, and other qualifying providers can buy homes when they otherwise would not be able to.
The TD Bank mortgage is the best dentist loan
In 2023, we believe that TD Bank offers the best professional mortgage for dentists out there, over all the other groups that qualify.
Here's why.
1. Full program benefits available
Some doctor mortgage programs out there don't open up the full benefits of the program to non-physicians, even if they qualify.
This is not the case with TD Bank's program.
Dentists receive the full scope of the benefits offered, meaning that they may borrow up to $1,000,000 at 100% financing. With the option to borrow up to $2 million in total, TD Bank's program has the potential to be more lucrative than most all other options available to those with a DDS or DMD degree.
When used responsibly, this can be powerful.
2. Opportunity to build home equity
Additionally, since some (but certainly not all!) dentists can expect to earn less than doctors over the course of their careers, these special mortgage benefits provide a once in a lifetime opportunity to start building home equity earlier in life.
Over time, home equity can be a powerful wealth building tool. And while nothing is guaranteed, real estate historically appreciates over time.
3. Dentists oftentimes have more debt
Oftentimes, dentists graduate from school with more student loan debt than doctors do.
Combined with the prospects of lower starting income, the inclusion of dentists in this program can vary well save them years of meticulously improving their debt-to-income ratios and paying down student loan debt, just to qualify to take a mortgage.
Pros and cons to a TD Bank physician mortgage
There are many advantages to using a mortgage through TD Bank to buy your home. In our opinion, these are the parts of the program that we think are the most advantageous to dentists and physicians alike.
1. No down payment required
The ability to buy a home with 100% financing is hugely appealing, particularly with dentists and doctors routinely holding $100,000 or more in outstanding student loan debt.
Plus, it feels like fewer lenders are offering this option these days.
Citizens Bank, for example, requires a 5% down payment as a minimum.
2. Private mortgage insurance waived
Since physicians are among the most highly compensated professionals nationwide, they are seen as less risky borrowers. Because of this fact, lenders are willing to make certain concessions, such as waiving private mortgage insurance requirements.
Of course, lenders hope that these perks will build longer term relationships in offerings such as wealth management services, but this perk is a definite plus, nonetheless.
The only real con to the program is that TD does not offer it to healthcare providers nationally.
You are only eligible if your new home is located in one of the participating states we mentioned above. As a reminder, their presence is mainly along the United States' Eastern Seaboard.
Applying for a TD Bank physician home loan
If you decide to proceed with completing a mortgage application with TD Bank, you'll want to make sure that you're prepared for what the process is likely to entail. A good place to start is assuring that you meet all of the eligibility criteria that we outlined earlier.
Then, you'll want to get all of your financial documentation together. This is likely to include:
At least 2 years of W-2 history (if applicable), though you can qualify if starting a position within 90 days
Statements for your financial accounts
Paystubs
Proof of employment (if applicable)
Current housing information
After you've been approved by mortgage underwriting, you are good to proceed with planning your closing.
Conclusion
The TD Bank Medical Professional Mortgage Program provides an excellent opportunity for healthcare professionals, dentists in particular, to buy their dream homes with relaxed approval criteria and favorable financing.
Also check out other physician mortgage programs with Truist, Citizens Bank, and Bank of America.
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