TD Bank Physician Mortgage: What You Need to Know


If you’re considering a doctor mortgage for your next house purchase, TD Bank has a physician mortgage program where you can put little to no money down.

Key Terms

  • Medical program graduates in various fields with a TD Bank checking account in good standing can get a mortgage on a primary residence of up to $1.5 million.
  • No-money down mortgage options exist for loans of up to $750,000 for practicing medical professionals, residents and fellows.
  • TD Bank is a lender with extensive real estate loan services but they aren’t nationwide. Its medical professional mortgage is available mainly in the East Coast.

Your first home is a place you can finally lay down real roots and grow. Almost 65% of all people living in the US own their own home. For medical program students and graduates, living out this dream of homeownership can seem difficult to do, however. Saddled with tens of thousands, if not hundreds of thousands of dollars of student loan debt, obtaining a regular home mortgage loan or even an FHA loan can be impossible for graduates. 

The statistics can be alarming. Research shows medical school graduates in the US carry between $200,000 and $300,000 of debt, on average. With lower credit scores and too much money to pay off, this can be crippling, financially. 

Thankfully, there is an answer. Physician mortgage programs provide new medical graduates and those in healthcare who have been practicing for up to a decade with positive financial opportunities.  A TD Bank medical professional mortgage can allow you to get ahead faster. With no down payment required for certain loans, you can invest in your future. As long as the home you’re buying represents your primary residence, TD may finance it. Here’s a bit more about who qualifies and what the loan entails.

Pros/Cons of TD Bank Physician Mortgage Loans

The TD Bank physician mortgage program comes with various pluses and minuses. Depending on where you live or plan to live, it could present an advantageous and beneficial investment opportunity.

Pros

Many medical and dental professionals can qualify. This specialized mortgage program is available to many practicing physicians including medical doctors, dentists (DMDs), osteopaths, podiatrists (DPM), and dental surgeons (DDS). It’s also available to those studying dental medicine, oral surgeons, and medical and dental residents and fellows. 

You can use this home loan while you are still studying and also if you’re now practicing but less than ten years out of your residency. You can qualify if you have owned your own practice or have been otherwise self-employed in your area of specialty for at least two years. 

Additional basic requirements ask that you have a TD Bank checking account in good standing and that you’re interested in buying a property in a state in which TD operates. 

You don’t need private mortgage insurance (PMI). This TD mortgage doesn’t require you to obtain private mortgage insurance, which can be a plus. Many conventional mortgages do have this requirement with loans connected to down payments of less than 20%. TD Bank doesn’t require PMI for medical mortgages with less than 20% down. 

Debt-to-income (DTI) requirements are flexible. Qualifying for a mortgage means having your debt-to-income ratio examined by the bank. Because medical professionals often carry large amounts of debt upon graduation, when DTI is considered, it can be hard for new professionals in this group to obtain a conventional mortgage. With a medical professional mortgage, or a physician loan, however, you get access to an exclusive loan product that allows you to obtain a mortgage even if your DTI is higher. 

You can potentially purchase a home before your residency begins. You may be able to use a contract for new employment to qualify for this mortgage. This can be beneficial if you’re an incoming resident transitioning to a new position. By using your employment contract, you can purchase your home before your residency actually begins. 

A variety of homes qualify. You can obtain this mortgage to finance the purchase of a: 

  • Single family home
  • Condo
  • Co-op (in specific markets only)
  • Planned Unit Development Residence

You can refinance an existing home. A great feature of this mortgage is that you can use it to refinance your existing primary residence. If you already own a home in a state where TD Bank is in operation, you may qualify for refinancing. 

In addition, you can choose from a fixed or adjustable loan rate. Both of these involve down payments based on your loan amount. 

With an adjustable rate, you get access to lower interest rates and payments early in your loan term. This could potentially allow you to qualify for a more expensive home.

A fixed rate mortgage allows you to protect yourself against rising mortgage rates. 

Cons

There are a few drawbacks to TD’s medical loan program that you might wish to consider. 

Minimum credit score

TD Bank requires borrowers have a certain minimum credit score to be approved for this specialized mortgage. This includes: 

  • A minimum credit score of 720  for a loan of less than $750,000
  • A minimum credit score of 740 for a loan above $750,000

Primary residence only. In addition, this mortgage can be used to help you purchase a second property but it must be your primary residence. 

It’s only available in certain states. As stated above in the introduction, TD’s medical professional mortgage is only available in certain areas and isn’t available nationwide.  

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How to Apply

Your first step in applying for a TD Bank physician mortgage loan is to find a local TD Bank mortgage loan officer in your area. You can do this by visiting TD’s website and clicking the green “search now” button. TD’s system will prompt you to input the county in which you want to finance a property or your ZIP code. From there, it will connect you with an appropriate loan officer to begin the underwriting process. 

You can also speak with a TD mortgage loan officer by calling 1-866-325-4516. 

Is using a TD Bank doctor mortgage a good idea?

A TD Bank medical professional’s mortgage can be a great asset to access if you’re graduating from a medical program and hoping to own your home. This mortgage can be useful to leverage if you’ve been running your own private medical or dental practice for at least two years and you’re looking for help financing the purchase of a new primary residence. 

With 100% financing on homes of up to $750,000 with no money down and low rates, this is a prime opportunity for home-buyers. Get set on the road to financial stability and growth and exceed the confines of a traditional home mortgage.

If you’re looking to explore physician mortgage loans in your state, check out our state-by-state guide to physician loans as a starting point in your search.

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Joshua Holt

Joshua Holt is a licensed mortgage loan originator (NMLS #2306824) and founder of Biglaw Investor. His mortgage expertise lies in the areas of professional mortgage loans, particularly for lawyers, doctors and other high-income professionals. Prior to Biglaw Investor, Josh practiced private equity mergers & acquisition law for one of the largest law firms in the country.

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