Home Mortgage Loans

Using a cash-out refinance to consolidate debt increases your mortgage debt, reduces equity, and extends the term on shorter-term debt and secures such debts with your home. The relative benefits you receive from debt consolidation will vary depending on your individual circumstances. You should consider that debt consolidation may increase the total number of monthly payments and the total amount paid over the term of the loan. To enjoy the benefits of debt consolidation, you should not carry new credit card or high interest rate debt. By refinancing your existing mortgage, your total finance charges may be higher over the life of the loan.

The Homebuyer Access Grant^SM may help customers purchase a home by providing a $10,000 grant for a down payment, subject to eligibility requirements. Grant funds cannot be used in connection with the financing of a Wells Fargo real estate owned (REO) property purchase. Repayment is not required for the grant. To use the grant, the full $10,000 must be applied toward the down payment. We cannot apply less than the full amount. The down payment grant is available in certain areas. Eligibility for grant money will not be confirmed until underwriting is complete.

Eligibility requirements:

Loan type: The grant may be used with a Wells Fargo fixed-rate conventional loan only. Loan types, such as non-conforming loans, government loans, and conventional adjustable-rate mortgages are not eligible. 

Income: The total qualifying income of all borrowers must be less than or equal to 120% of the area median income in the county where the subject property is located.

Location: The borrower's verified current permanent residential address must be located in an eligible area or the subject property the borrower is purchasing must be located in an eligible area. 

Occupancy: The borrower must occupy the subject property they are purchasing as their primary residence.

Contact a home mortgage consultant to discuss eligibility requirements.

Possible tax implications:  If the customer chooses to accept the grant, the funds received may be considered additional taxable income and will be reported on Form 1099-MISC for the primary borrower (the first person listed on the loan) on the application. This means the borrower may owe taxes on that additional income. The grant funds received may also affect any eligibility for income-based assistance, such as government programs like student loan payment relief or other government payments that may be based on income.  Before accepting this grant, please have the customer speak with their tax advisor to understand if their taxes may be affected by this grant. 

The Homebuyer Access grant may be combined with Dream. Plan. Home.^SM closing cost credit, Corporate Mortgage Benefit Program, Union Plus^® Mortgage program, non-Wells Fargo funded down payment assistance programs (DAPs), Builder Credits, and the Employee Mortgage Program. Standard Agency underwriting guidelines apply.

The Dream. Plan. Home.^® closing cost credit may help eligible consumers purchasing their primary residence. The closing cost credit is designed for consumers with income at or below 80% of the area median income (AMI) of the property location. The closing cost credit is available in certain areas and is not available with all loan types. Please speak with a home mortgage consultant for details.

If you are a service member on active duty, an eligible spouse, partner, or dependent, or currently receiving SCRA benefits, please consult with your legal advisor prior to seeking a refinance of your existing mortgage loan. In some cases, a refinance may impact your eligibility for benefits under the Servicemembers Civil Relief Act or applicable state law.

Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A.

LRC-0924