Wells Fargo Mortgage Loan Review: Eligibility, Features and More

Medical professionals often have high levels of student loan debt when they finish medical school, which can make home financing challenging. Some doctors, dentists, veterinarians and nurse practitioners have special access to financing options and underwriting criteria that can make it easier to get a home loan.

Wells Fargo doesn’t offer a specific program for doctors who want to become homeowners, but there are other options that might work for healthcare professionals. 

Here are some loan types that might work if you go through Wells Fargo.

Wells Fargo mortgage loan details 

Wells Fargo doesn’t offer specific doctor loan programs. Wells Fargo was founded in 1852 and currently has $1.9 trillion in assets. They offer a variety of mortgage programs for doctors. 

Additionally, Wells Fargo does offer practice loans for qualifying professionals who open their own practice, but that’s practice finance, similar to a small business loan.

Here are some of the features of the Wells Fargo bank program.

Wells Fargo

• Minimum down payment: 3% down for certain programs (down payment assistance and gift funds are allowed)
• Residency/fellow allowed: N/A
• Maximum loan amount: Not disclosed
• Degrees that qualify: N/A
• Eligible states: AL, AZ, CA, CO, CT, FL, GA, ID, IL, IA, MD, MN, NE, NV, NJ, NY, NC, OR, PA, SD, TX, VA, WA, WI

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Wells Fargo mortgage loan: Pros and cons 

As you compare mortgage lenders, you need to know what to expect with closing costs, upfront fees and disclosures. It might make sense to compare a Wells Fargo loan with other physician loan options from other financial institutions.

Here are some of the pros and cons of a Wells Fargo bank loan. 

Wells Fargo mortgage loan pros

While you won’t be able to get a true physician loan at Wells Fargo, you might be able to access a program that helps you get an affordable mortgage payment with a more conventional loan or jumbo loan.

Down payment options

In general, you’ll likely need to come up with a down payment. For conventional loans, you might qualify for a 3% down payment. Wells Fargo allows down payment gifts and assistance. Qualifying borrowers might also qualify for government programs that come with low or no down payment.

However, these assistance options might not work with a jumbo loan. You might need a higher down payment to get a jumbo loan. Use the physician mortgage loan calculator to determine whether it makes sense to get a larger loan.

Different loan types

Wells Fargo offers different types of home loans with different loan limits and features. There are fixed and variable rates, as well as loans for new construction. After buying a home, Wells Fargo can also help you tap the equity for home equity loans and lines of credit if you meet eligibility requirements. You can also refinance, including getting a cash-out refinance.

Interest rate discount for some customers

For loan products, including jumbo loans, you might qualify for a lower interest rate if you have other assets, like a savings account, credit card or investment account with Wells Fargo. For jumbo loans, you can get a discount on your rate with eligibility through private mortgage banking.

Wells Fargo mortgage loan cons

When reviewing loan options, you also need to understand some of the downsides. Compare the downsides with other loan programs from other lenders. 

You might have private mortgage insurance

Most doctor loan programs don’t charge private mortgage insurance (PMI), but if you go through Wells Fargo and you don’t have a 20% down payment, you’re likely to need to pay for PMI.

Standard underwriting criteria

Since Wells Fargo doesn’t have a true physician loan program, you probably need to meet standard requirements. You’ll need to meet credit score and debt-to-income ratio standards for conventional and jumbo loans. 

This can make it harder to qualify for a mortgage when you have student loan monthly payments and other costs. However, you might have an easier time with Wells Fargo FHA loans or VA loans.

Cash reserve requirement

If you decide to get a jumbo loan, you might need to meet cash reserve requirements. Wells Fargo doesn’t disclose its requirements, so you need to check with a loan officer to confirm your eligibility.

How to apply for a Wells Fargo mortgage loan 

As you decide on a lender, make sure to compare Wells Fargo Bank to other physician mortgage lenders. Also, look at other government programs and opportunities to get a home mortgage.

If you decide that Wells Fargo is the best program for you, follow these steps:

Step 1: Contact Wells Fargo

To learn more, you or your real estate agent can reach out to a bank representative. There’s an information request form at the end of this article as well.

Be ready with the following information:

• Personal information: Name, email and phone number.
• Loan details: Loan purpose and amount.
• Property information: Property location and zip code. 
• Professional eligibility: Degree, employment contract and proof of medical license.

Step 2: Gather the necessary documentation 

Lenders require certain documents for home loans. Find out what you need to get ahead of time from your loan officer. Some you might need:

• Purchase agreement.
• Employment contract.
• Pay stubs and tax returns.
• Recent bank statements.
• Driver’s license or other ID.
• Other documents, as requested.

Whether you’re a veteran homeowner or a first-time homebuyer, preparing ahead of time can help you get approved faster. 

Step 3: If approved, accept the loan 

Once Wells Fargo approves you, review all of the features and terms of the mortgage, and make sure you understand repayment. If things match what you expect, accept the loan.

Should you apply for a mortgage loan with Wells Fargo? 

If the numbers work for you, a loan program through Wells Fargo might be able to help you get a home loan. However, you won’t have access to a physician loan program, so you’ll need to use traditional underwriting requirements for a conventional loan or jumbo loan. If you want personalized support on your journey to homeownership, fill out the form below to get more information.