U.S. Bank Mortgage Review 2024 (2024)

U.S. Bank offers home loans in all 50 states along with Washington, D.C. and provides access to over 2,700 branch locations, which could be helpful if you prefer to apply for a mortgage in person.

The bank also publishes its mortgage rates daily on its website. However, keep in mind that these rates assume a credit score of at least 740, plus a minimum down payment of 25% for a conventional loan or 3.5% for an FHA loan. Your rate will also vary depending on your location.

U.S Bank offers the following mortgage options:

• Conventional
• Jumbo
• FHA
• USDA
• VA
• Investment property loans
• New construction and lot loans
• Home improvement loans
• Rate-and-term refinance
• Jumbo refinance
• Cash-out refinance
• FHA streamline refinance
• FHA cash-out refinance
• VA interest rate reduction refinance loan (IRRRL)
• VA cash-out refinance
• Smart Refinance
• Home equity loan
• Home equity line of credit (HELOC)

In addition to fixed-rate loans, U.S. Bank offers conventional adjustable-rate mortgages (ARMs) with five-, seven- and 10-year options. Jumbo ARMs are available, too.

U.S. Bank also provides Smart Refinance loans, which are no-closing-cost loans that allow you to tap into your home’s equity.

Loan Minimum

U.S. Bank doesn’t publicly disclose a minimum loan amount for its mortgages. If you’re interested in a small mortgage loan, you’ll need to contact the lender to see if it’s a good option for you.

Loan Maximum

With a U.S. Bank jumbo loan, you can borrow up to $1.25 million. Keep in mind that your loan maximum will depend on the loan type you choose as well as your qualifications.

Loan Servicing

Unlike many lenders, U.S. Bank services the loans it originates. This means you’ll make your payments to U.S. Bank and can direct any questions to the lender.

Customer Support

Current and prospective U.S. Bank borrowers can contact customer support via phone or by visiting a branch location. You can also set up an appointment with a specialist, which can be virtual, in person or via phone. Appointments or co-browsing sessions—where you share your screen with a U.S. Bank specialist—can be arranged through U.S. Bank’s mobile app, too.

Here are the basic criteria that U.S. Bank requires for mortgage approval:

Minimum Credit Score

U.S. Bank only discloses its minimum credit score requirement of 730 for its Smart Refinance program. For other loan types, such as conventional and jumbo loans, the lender mentions that you’ll typically need very good credit, which is usually considered to be a FICO credit score of at least 740.

However, U.S. Bank also specifies that credit score requirements can be as low as 620 for some loan types, with lower scores accepted for loans backed by the FHA or VA. So you might still qualify with U.S. Bank if you have bad credit, depending on the loan program.

Minimum Down Payment

U.S. Bank’s minimum down payment requirements are:

• Conventional: 5%
• FHA: 3.5%
• VA: 0%

Keep in mind that if you put less than 20% of the purchase price down on a conventional loan, you might have to pay for private mortgage insurance (PMI).

Maximum Debt-to-income (DTI) Ratio

Your DTI ratio is the amount you owe in monthly debt payments compared to your income. Mortgage lenders, including U.S. Bank, look at this to determine if you can reasonably afford to take on more debt with a home loan.

U.S. Bank only specifies that your DTI ratio must be less than 45% to be eligible for a jumbo loan. For other products, you’ll need to check with the lender.

Most lenders charge fees on mortgages, though some charge more than others. On average, you can expect to pay between 2% to 5% of your loan amount in mortgage fees, which can include origination fees, rate-lock fees and more. Lenders might also charge prepayment penalties if you pay off your mortgage early.

U.S. Bank does not publish its mortgage fees, though it mentions that origination fees might be applicable for some loans. If you already have a first mortgage, checking account or Gold or Platinum checking package with U.S. Bank, you could be eligible to have 0.25% of your closing costs covered with a lender credit worth up to $1,000.

Prospective borrowers can apply for a U.S. Bank mortgage online, by phone or in person at a branch. You also have the option to prequalify or get preapproved.

If you’d like to apply online, follow these steps:

1. See how much you prequalify for. Starting on U.S. Bank’s mortgage homepage, navigate to the button that reads “Continue to prequalify.” Follow the on-screen prompts to enter your personal and financial information, including your annual household income and annual household debt. Next, provide details about your borrowing needs. Keep in mind that prequalification doesn’t involve a credit-based approval determination, but it can give you an estimate of what you could qualify for.
2. Get preapproved. To get preapproved for a mortgage, you’ll need to fill out additional paperwork through the U.S. Bank Loan Portal. You’ll also have to provide documentation to verify your identity and income—such as W-2s, tax returns, pay stubs and bank statements—as well as undergo a hard credit check, which could cause a slight but temporary drop in your credit score.
3. Complete the formal application process. Once you have found a home and are ready to submit a full application, click the button that reads “Start your application” from the mortgage homepage on U.S. Bank’s website. If you’ve already been working with a U.S. Bank loan officer, you can also continue the process with them. Be sure to provide additional documentation as requested. You can expect to receive your estimated closing costs as well as an initial loan estimate within three business days.
4. Respond to lender requests. A loan officer will contact you if U.S. Bank needs additional information or documentation to move through underwriting. U.S. Bank will also order a home appraisal and title search during this time (if applicable). Make sure to respond to requests from your loan officer as quickly as possible to prevent any delays.
5. Close on the loan. If your loan is approved, you’ll receive a closing disclosure outlining the loan agreement’s final terms and costs, including required cash at closing. You can typically expect to close on a U.S. Bank purchase loan within 30 days while a refinance could take 45.

If your application is denied, contact your loan officer to find out why your mortgage application was rejected. In some cases, applications are denied due to errors or incomplete information. In this scenario, you might be able to correct the mistakes and resubmit your mortgage application.

Other possible reasons for rejection include having a low credit score, insufficient income or too much debt. If you’re unable to qualify due to one or more of these, it’s likely a good idea to focus on building your credit score, increasing your income or paying down debt to increase your approval odds in the future.

You could also consider applying with a co-borrower or co-signer. Keep in mind that this person would share responsibility for the loan, which is a big deal—especially if they won’t be living in the home. You can use our mortgage calculator to get an idea of what you can afford on your own.

Also remember to shop around and compare your options with as many mortgage lenders as possible. This can help you figure out which lenders you might qualify with as well as find a good deal. Keep in mind that according to the Consumer Financial Protection Bureau (CFPB), submitting multiple mortgage applications within 45 days will have the same impact as submitting a single application.

As of October 25, 2022, U.S. Bank’s rating from the Better Business Bureau (BBB) is 1.12 out of 5 stars, based on 595 reviews. U.S. Bank has received a B+ from the BBB, with 1,131 complaints closed in the last year and 4,939 closed in the last three years.

Note that these ratings reflect all of U.S. Bank’s products, not only mortgages. Additionally, the letter grade doesn’t take customer reviews into account. Instead, it’s based on how the company responds to complaints, its time in business, its size and other factors.

The CFPB’s database shows 3,776 complaints regarding U.S. Bank mortgages from December 2018 to October 2022. Many of these were about trouble during the payment process, difficulties paying a mortgage or problems during the application for or closing of a loan.

Also note that on July 28, 2022, the CFPB investigated U.S. Bank and subsequently fined the company $37.5 million for opening deposit accounts as well as issuing credit cards and lines of credit to its customers without their knowledge or consent. In addition to the fine, U.S. Bank was also required to return all unlawfully charged fees and costs, plus interest.

We graded U.S. Bank mortgages based on elements that have a meaningful impact on the cost of the mortgage; borrower eligibility requirements; the variety of loan options; and loan features that can impact the homebuying process. Our scoring method is based on the following categories:

• Interest rate: 20%
• Down payment requirements: 20%
• Credit score minimum requirements: 20%
• Alternative credit data considered: 10%
• Preapproval time: 10%
• Closing timelines: 10%
• Loan types: 10%
• Lender discounts offered: 5 bonus points

While there are certainly more features that lenders offer, we chose not to include these in our scoring in order to bring forward lenders that have the most competitive rates and are among the most accessible for borrowers of all financial backgrounds.

Our focus on affordability, accessibility and key features that can impact the homebuying process (like preapproval time and closing timelines) is what we consider reflective of today’s consumer’s top priorities when comparison shopping for mortgage lenders.