TD Bank, America's Most Convenient Bank, has updated its popular Right Step mortgage program. Right Step provides qualified home buyers with an alternative to Federal Housing Administration (FHA) backed loan products.
The program features a low three percent down payment option and the potential for significant savings on a borrower’s monthly payment with no private mortgage insurance (PMI) requirement. Right Step also includes simplified underwriting and appraisal processes for a smooth and efficient approval process.
In addition, the new Right Step program also eliminates the previous version’s median income requirements making more borrowers eligible to take advantage of the updated program.
Previously, only home buyers in TD Bank’s Maine to Florida footprint who made up to 80% of the median area income as determined by the U.S. Department of Housing and Urban Development (HUD) were eligible for Right Step. With the updated Right Step program, non-low to moderate income buyers can participate in the program if the selected purchase property is located in an area that is defined as low to moderate income.
"With the updated program requirements, Right Step will allow borrowers to get more house for their money by eliminating the cost of private mortgage insurance from their monthly mortgage payment," said Michael Copley, Executive Vice President, Retail Lending, TD Bank.
"Lenders today need to evaluate each customer on an individual basis and offer a loan option that best meets their needs. At TD, we understand that the financial situation of every borrower is unique, and because of the strength and stability in our own lending practices, we’re able to offer financing to low to moderate income or first time buyers who may not have built up equity in a previous property or those who do not have the funds to put 20 percent down."