MoneyGeek’s Take

U.S. Bank Mortgage Review

U.S. Bank mortgage loans are available for as little as a 3.5% down payment for FHA loans and 5% for conventional and jumbo loans. Borrowers need a minimum credit score of 620, and the interest rate varies depending on the loan product selected. MoneyGeek’s U.S. Bank mortgage loan review highlights all the information you need to know before submitting your loan application.

At a Glance: U.S. Bank Mortgages


  • U.S. Bank

    • Conventional Loans: 5% FHA Loans: 3.5% VA Loans: 0% Minimum Down Payment
    • Conventional, Jumbo, Investment Property, FHA, VA, New Construction, RefinancingLoan Products Offered
    • All 50 states and Washington, D.C.States of Operation
    • YesOnline Application

    U.S. Bank was established in 1863 as First National Bank and currently offers various financing products to interested customers. Today, the lender operates more than 80% of its transactions and 65% of loan sales online, and the rest through loan officers spread across the country.

    Various mortgage loans are available at both fixed and adjustable rates. If you need a low-fixed-rate loan option and have an established credit history, a conventional loan from U.S. Bank may be ideal.

    Meanwhile, if you need a mortgage with increased limits, you may consider a jumbo loan from U.S. Bank. FHA and VA loans are also available for customers interested in low-down-payment financial products.

    For conventional loans, customers need a minimum credit score of 620. However, jumbo loans typically require a higher credit score of at least 740. Customers may complete the prequalification and application process in simple online steps.

    U.S. Bank’s credit review does not affect your credit score. Besides mortgage loans, U.S. Bank also provides other loan products, including personal, car and business loans.

    Pros

    • Wide array of conventional and government mortgage loan products
    • Simple online application process
    • Up to $1,000 closing cost credit
    • 0.25% customer credit available on first mortgage to eligible customers
    • Offers mortgage loan refinancing options

    Cons

    • 5% down payment required for conventional loans
    • 45% debt-to-income ratio required for jumbo mortgage loans
    • High minimum credit score requirement for jumbo loans
    • Property appraisals may take weeks
    • Doesn’t offer USDA loans

    U.S. Bank was established in 1863 as First National Bank and currently offers various financing products to interested customers. Today, the lender operates more than 80% of its transactions and 65% of loan sales online, and the rest through loan officers spread across the country.

    Various mortgage loans are available at both fixed and adjustable rates. If you need a low-fixed-rate loan option and have an established credit history, a conventional loan from U.S. Bank may be ideal.

    Meanwhile, if you need a mortgage with increased limits, you may consider a jumbo loan from U.S. Bank. FHA and VA loans are also available for customers interested in low-down-payment financial products.

    For conventional loans, customers need a minimum credit score of 620. However, jumbo loans typically require a higher credit score of at least 740. Customers may complete the prequalification and application process in simple online steps.

    U.S. Bank’s credit review does not affect your credit score. Besides mortgage loans, U.S. Bank also provides other loan products, including personal, car and business loans.

    U.S. Bank

U.S. Bank Mortgage Loan Types, Details and Requirements

Mortgage loan requirements vary depending on the lending company and the specific loan product. Our U.S. Bank mortgage loan review outlines the loan types, rates and fees associated with the lender’s product offerings.

Mortgage Types Offered

  • Conventional
  • Jumbo
  • FHA
  • VA
  • Investment property
  • New construction and lot
  • Refinancing

However, U.S. Bank does not provide USDA loans.

Mortgage Rates

U.S. Bank determines its loan rates depending on various factors, including the purpose of the mortgage and whether the loan has a fixed or adjustable rate. Other considerations include the monthly payment rate, credit score, down payment and monthly payment amount. That’s why rates may vary across borrowers.

Additional Fees

Although it is not clear how much U.S. Bank charges for origination, underwriting, processing or application fees, you may need to pay various other costs, as follows:

  • Prepayment penalty fee: For qualified mortgage loans, U.S. Bank may charge 1% of the amount as a prepayment penalty to a maximum of $500.
  • Loan modification fee: This is applicable to adjustable-rate mortgage (ARM) loans converted to fixed-rate loans. The fee amount varies depending on what is outlined in the original mortgage note.
  • Check by phone fee: The lender charges this fee when borrowers make payment by telephone, through a loan officer or in the company’s self-service interactive voice response system. The amount varies from $0–$11.
  • Late payment fee: If you do not make your payment within the time specified in your loan agreement, you will get fined depending on the percentage of the overdue amount. The rates vary from state to state.

Minimum Borrowing Requirements

Most mortgage products from U.S. Bank need a minimum credit score of 620. Conventional loans are generally limited to $647,200 per home, with a down payment of at least 5% and a minimum APR of 4.50%. However, individuals who live in a high-cost area may receive up to $970,800 as a mortgage.

Jumbo loans offer higher purchase limits, although customers need a debt-to-income ratio that’s less than 45% to qualify and the property cost supported by an appraisal. These loans feature an APR of at least 5.07%, and they require a credit score of at least 740.

FHA loans allow a down payment of 3.5% and may be ideal for customers with lower credit scores who need an option with lower down payments.

U.S. Bank Mortgage Application Requirements

To initiate the mortgage application process at U.S. Bank, borrowers should have several documents. The actual documents may vary depending on each unique situation but will typically include:

  1. 1
    Identification and Social Security number
  2. 2
    Proof of income
  3. 3
    Pay stubs for the last month
  4. 4
    Federal tax returns
  5. 5
    Existing debt information
  6. 6
    I-9 or W-2 forms for the past two years
  7. 7
    Recent bank statements
  8. 8
    Real estate property information

Customers will need to respond to simple application questions and upload the documents as requested.

Is U.S. Bank Right for You?

Securing the best mortgage loan depends on your unique circumstance and the terms of the lending company. MoneyGeek’s U.S. Bank mortgage review can help you determine whether the lender suits your needs.

Who U.S. Bank Is Perfect For

According to MoneyGeek’s research, U.S. Bank provides excellent mortgage loans to a wide array of borrowers, especially those with an established credit history.

Customers can determine whether they prequalify for a select mortgage product within five minutes and have their application completed as soon as their credit rating is verified.

The bank is also ideal for clients who need increased purchase limits and may wish to refinance their loans in the future. If you are looking for a low-cost down payment, you may also consider U.S. Bank, with rates as low as 3.5% on some of its mortgage loans.

Who Should Not Choose U.S. Bank

Borrowers who need USDA loans may need to get alternative lenders to U.S. Bank. Those with a credit score that’s lower than 620 may also need to consider other companies unless they are only interested in FHA and VA mortgage loans. Furthermore, if you need a jumbo mortgage, you’ll need a credit score of at least 740 to qualify with U.S. Bank.

You may also not find U.S. Bank appealing if you need a lender that doesn’t charge prepayment or late fees.

How to Apply for a U.S. Bank Mortgage Loan

The application process for a mortgage loan varies across lenders. Here is an outline of the steps you will need to complete while applying for a loan from U.S. Bank.

  1. 1
    Prequalify

    You can find out if you qualify to borrow from the bank through a simple prequalification process that may not affect your credit report. You will need to provide some basic financial information, including proof of income, existing debt and assets, to estimate how large of a loan you can afford to repay.

  2. 2
    Submit an Application Form

    Once you confirm the loan amount, you will need to put together various documents as instructed by the lender. Most likely, you will need:

    • ID and Social Security number
    • Recent pay stubs
    • W-2 or I-9 forms for the past two years
    • Proof of income
    • Federal tax returns
    • Recent bank statements
    • Information on existing debts
    • Asset information

    Once you sign up in the U.S. Bank loan portal, you will respond to a few simple questions and upload the above documents to complete your application.

  3. 3
    Wait for Approval

    The bank will review your documents and may have questions or need additional information from you. Be sure to respond promptly to keep your application moving. The estimated closing costs will be provided in your initial loan estimate within three days of your application.

  4. 4
    Review Loan Agreement

    Once your loan gets approved, you will receive a closing disclosure from U.S. Bank indicating the terms of the agreement and your final amount. Take time to review the details of the closing documents and raise any questions or concerns with the bank.

  5. 5
    Sign Loan Agreement

    If you are happy with the terms of the agreement, you can meet with your closing agent to sign the mortgage documents. Additionally, you will need to make your down payment and take copies of your photo ID and proof of homeowners insurance.

  6. 6
    Make Payments

    The last stage of the process entails making payments for your loan. You can do this through the bank’s online portal.

What to Do if You Are Rejected by U.S. Bank

Completing the prequalification process does not guarantee that your loan will get approved. The lender may cancel your application for various reasons, including a low credit score, lack of proof of income or submitting incomplete application documents.

Should this happen, MoneyGeek recommends that you first establish the cause of rejection. Find out if it’s possible to revise your application and resubmit it to U.S. Bank or another lender. However, you should never apply for another loan until you are sure what caused the previous application to be declined.

You may talk to your loan officer, a financial advisor or any representative from the bank to obtain additional resources about your preferred mortgage loan.

You may also consider alternative options that suit your needs, especially if your application failed to go through due to credit score or income issues.

Frequently Asked Questions About Mortgages From U.S. Bank

The best mortgage loan depends on the borrower’s needs and the lender’s requirements. MoneyGeek’s U.S. Bank mortgage review can help you determine if this bank is the best option for your unique situation.

What types of properties are eligible for U.S. Bank mortgage loans?

Who can apply for a U.S. Bank mortgage?

What types of mortgage loans does U.S. Bank offer?

Is there a borrowing limit for U.S. Bank mortgages?

What is the minimum down payment U.S. Bank will accept?

Does U.S. Bank require private mortgage insurance (PMI)?

Does U.S. Bank require a property appraisal?

About Christopher Boston


Christopher Boston headshot

Christopher (Croix) Boston was the Head of Loans content at MoneyGeek, with over five years of experience researching higher education, mortgage and personal loans.

Boston has a bachelor's degree from the Seattle Pacific University. They pride themselves in using their skills and experience to create quality content that helps people save and spend efficiently.


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