TD Bank Introduces New Mortgage Loan Product Designed for Minority Communities

Rhea-AI Summary

TD Bank has launched the TD Home Access Mortgage, aimed at increasing homeownership opportunities for Black and Hispanic communities. This mortgage product features a $5,000 lender credit for closing costs and flexible debt-to-income ratios. It targets barriers identified in a recent survey where 46% of respondents cited down payment savings as a roadblock. The mortgage is available in multiple states from Maine to Florida, applicable for various residential properties and both purchase and refinance transactions.

Positive

• Launch of TD Home Access Mortgage targets increased homeownership for Black and Hispanic communities.
• Offers $5,000 lender credit, enhancing affordability for closing costs.
• More flexible debt-to-income ratios and expanded underwriting criteria improve accessibility.

Negative

• None.

CHERRY HILL, N.J., March 2, 2022 /PRNewswire/ -- TD Bank, America's Most Convenient Bank®, announced today the launch of TD Home Access Mortgage, a new product designed to increase homeownership opportunities in Black and Hispanic communities across several markets within the Bank's footprint.

"TD Home Access Mortgage reduces barriers that often slow the rate of homeownership in Black and Hispanic communities."

TD Home Access Mortgage provides prospective buyers with an affordable mortgage option, including a $5,000 lender credit which does not require repayment, that borrowers can use for closing costs or toward a down payment on a home purchase. It also offers more flexibility with a greater debt-to-income (DTI) ratio and expanded underwriting requirements, as well as credit parameters that increase accessibility.

"The current housing market is highly competitive, making it exceedingly difficult for potential homebuyers, especially people of color, to contend if they have limited financial resources for a down payment or closing costs," said Michael Innis-Thompson, Head of Community Lending and Development at TD Bank. "This mortgage offering is designed to ease that burden, provide more equity in the home lending process, and make the dream of homeownership more attainable for Black and Hispanic families."

The product launch is particularly relevant, as a recent TD survey found 46% of respondents consider saving for a down payment to be a roadblock to purchasing their first home, including 44% and 45% of Black and Hispanic homebuyers, respectively.

TD Home Access Mortgage is offered in several communities across TD's retail footprint, which spans from Maine to Florida. Qualifying borrowers must meet credit and income parameters and reside in one of the participating markets, but they are not required to be first-time homebuyers. Borrowers can use the product for both purchase and refinance transactions, and for various property types, including single-family residences, condos, and owner-occupied multi-family units. TD Home Access Mortgage is the latest offering the Bank has introduced to accelerate affordable home lending and increase inclusivity across its consumer product suite, including:

• Enhancing TD Bank Right Step Mortgage product by expanding FICO score requirements, DTI and Loan to Value qualifications
• Reducing secured card entrance deposit from $500 to $300
• Reducing home equity loan minimum from $25k to $10k
• Launching TD Essential Banking, a low-cost, no overdraft fee deposit account
• Launching FNMA Refi NOW, which offers higher DTI flexibility

"TD Home Access Mortgage is very much aligned with the Bank's ongoing commitment to continually expand our product suite to meet the needs of communities within our footprint," says Innis-Thompson. "This product addresses the need to reduce barriers that so often slow the rate of homeownership in Black and Hispanic communities. And it also demonstrates our dedication to extending our culture of care and inclusion to our product design, finding meaningful and sustainable ways to support our customers."

About TD Bank, America's Most Convenient Bank^®                                           

TD Bank, America's Most Convenient Bank, is one of the 10 largest banks in the U.S., providing more than 9.5 million customers with a full range of retail, small business and commercial banking products and services at more than 1,220 convenient locations throughout the Northeast, Mid-Atlantic, Metro D.C., the Carolinas and Florida. In addition, TD Bank and its subsidiaries offer customized private banking and wealth management services through TD Wealth^®, and vehicle financing and dealer commercial services through TD Auto Finance. TD Bank is headquartered in Cherry Hill, N.J. To learn more, visit www.td.com/us. Find TD Bank on Facebook at www.facebook.com/TDBank and on Twitter at www.twitter.com/TDBank_US and www.twitter.com/TDNews_US.  

TD Bank, America's Most Convenient Bank, is a member of TD Bank Group and a subsidiary of The Toronto-Dominion Bank of Toronto, Canada, a top 10 financial services company in North America. The Toronto-Dominion Bank trades on the New York and Toronto stock exchanges under the ticker symbol "TD". To learn more, visit www.td.com/us.

 

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SOURCE TD Bank

FAQ

What is the TD Home Access Mortgage product?

The TD Home Access Mortgage is designed to increase homeownership opportunities for Black and Hispanic communities, providing a $5,000 lender credit and flexible lending terms.

What barriers does the TD Home Access Mortgage address?

It addresses barriers such as high down payment requirements, which 46% of survey respondents identified as a significant roadblock to homeownership.

In which states is the TD Home Access Mortgage available?

The TD Home Access Mortgage is available in several states from Maine to Florida.

What types of properties can be financed with the TD Home Access Mortgage?

It can be used for single-family residences, condos, and owner-occupied multi-family units.

When was the TD Home Access Mortgage introduced?

The TD Home Access Mortgage was announced on March 2, 2022.