What are the benefits of a TD Bank Medical Professional Mortgage?
In addition to no-money-down financing, our mortgages for doctors, surgeons, dentists, residents and fellows have some specific benefits that set them apart from traditional mortgages:
No private mortgage insurance (PMI):
Most mortgages require private mortgage insurance for loans with down payments of less than 20%, but the TD Bank Medical Professional Mortgage does not require PMI, even with a down payment of less than 20%.
On large loan amounts, PMI can add hundreds of dollars to your monthly payment. Not requiring this insurance frees up money that can go to other things, like medical school loans or investments.
Flexible approach to debt-to-income (DTI) requirements:
When a bank reviews a mortgage application, the percentage of monthly income that goes toward paying off debts is a determining approval factor. A mortgage application with high DTI could be deemed riskier than an application with a low DTI.
Because medical professionals, especially early in their careers, could be impacted by significant student loan debt, their high DTI may make it difficult to qualify for a traditional mortgage. During internship and residency, for example, student loan payments often take up most of their income. Our medical professional mortgage is designed specifically to work with newer physicians, dentists, residents and fellows who may have a high DTI.
Employment verification as proof of income:
In many cases, residents, doctors and dentists can use a contract for new employment to qualify for a TD Bank Medical Professional Mortgage. This benefit may be particularly helpful to incoming residents, who may be transitioning to a new area or position and want to purchase a home before the residency begins.