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U.S. Bank mortgage review 2024

Updated 5 min read
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The Yahoo view: U.S. Bank is a compelling choice for a wide range of home loan products. And the bank has made a financial commitment to advance homeownership for underserved borrowers.

U.S. Bank is a leading mortgage lender with a lot of appealing products, including home equity loans and lines of credit. However, advertised mortgage rates are designed for well-qualified buyers with substantial down payments, so you'll want to take the website’s sample rates with a grain of salt.

U.S. Bank mortgage

Dig deeper: Best types of home loans for first-time home buyers

Key benefits

  • Has committed $100 million over five years to offer up to $12,500 in down payment assistance and up to an additional $5,000 in a lender fee credit to advance homeownership for underserved families.

  • Existing U.S. Bank customers may be eligible for a closing costs credit of up to $1,000.

  • The prequalification process is free, "takes five minutes," and does not impact your credit score.

Need to know

  • Apply for a loan with a loan officer in person, by phone, or online.

  • U.S. Bank's mortgage rates, as published on its website, look appealing. However, the conventional loan rates shown require a down payment of 25% and a FICO score of 740 or better. That's well above the national average credit score of 714.

Loan types offered

Learn more: What is a physician mortgage loan, and who qualifies?

You'll find all of the popular first-time home buyer loans at U.S. Bank, including VA loans for service-connected borrowers and FHA loans for those with lower credit scores.

Plus, the bank has made a solid financial commitment to giving low- and moderate-income buyers access to down payment and closing costs assistance. It's one of the reasons U.S. Bank made the Yahoo Finance list of best mortgage lenders for first-time home buyers.

One interesting note: It’s common for lenders to offer a 3% down payment conventional loan for first-time buyers, but U.S. Bank requires a 5% down payment instead.

There are plenty of first-timer resources. You'll find the usual articles, such as:

There are also a couple of very relatable videos about the mortgage experience and the home-buying process.

Read more: Best VA loan lenders

Home equity loans and lines of credit are available at U.S. Bank. It's nice to see a lender not trying to pass off a cash-out refinance as an equivalent product. U.S. Bank offers those, too, but few people are looking to refinance these days.

Cash-out refis will regain popularity as people purchase homes at today's higher rates and look for lower-interest-rate options in the future.

One thing that U.S. Bank is promoting is providing a Loan Estimate to detail the terms of a home equity loan without completing a full loan application. Loan Estimates are required by law to be issued to potential borrowers once an application has been made, but U.S. Bank is giving you a preview of the important three-page document.

Dig deeper: The differences between HELOCs and home equity loans

Clicking "buy your new home" or "refinance your mortgage" sends you to informational pages with sample interest rates. As noted above, the rates are based on some stiff qualifications and the purchase of up to one mortgage discount point.

Lenders use upfront fees such as discount points to make their advertised interest rates appear more favorable. The problem is that one lender may sweeten their rate with one point — while another may add two points.

It's confusing and sometimes hard to tell if you're comparing apples to apples. When you narrow down your lenders to those you are most interested in, ask them to quote you a rate with zero discount points.

Read more: How to get the lowest mortgage rates

Prequalifying for a home loan with U.S. Bank "takes five minutes," is free, and "won't affect your credit," the lender says. By prequalifying, you may get a good idea of your potential interest rate or find out what you need to clean up with your credit history, but remember — a prequal is not a commitment to lend.

The U.S. Bank online mortgage application is typical among major lenders. It will take some time, and you'll have to upload some documents, so tackle it only when you're prepared and have the time to focus on it for a while.

Dig deeper: How to get a mortgage in 2024

The U.S. Bank Learning Center has articles on the mortgage underwriting process — or the procedure for how loans are approved — as well as mortgage insurance, down payment assistance, and the basics of first-time homebuyer loans.

Calculators include:

Something we don't see often: U.S. Bank also has a very useful rent vs. buy calculator that can help you think through the decision to own a house rather than pay rent.

When it comes to finding interest rates, U.S. Bank and Truist make it easy. Both have easy-to-find mortgage rate pages and show various interest rates on different loan products.

Both U.S. Bank and Truist default to showing mortgage rates with one discount point. However, Truist goes a step further and allows you to price a sample interest rate with zero points. Advantage: Truist.

However, Truist doesn't reveal much else about what its interest rates are based on, such as credit score, debt-to-income ratio, and the required down payment. U.S. Bank does. Advantage: U.S. Bank.

Another reason it's always a good idea to shop multiple providers to find the best mortgage lender.

Banks often have very similar home loan programs. Yet Chase does not offer home equity loans or HELOCs. U.S. Bank provides both. For homeowners seeking to access the value in their house, U.S. Bank is the clear choice.

However, both banks have strong closing costs and down payment assistance options. The two banks also offer in-demand government loans such as VA mortgages for borrowers with a military connection and FHA-backed loans for households with limited incomes.

Find mortgage lenders that offer what you want, then let them compete for your business.

Check out our Chase mortgage review

Methodology:

Yahoo Finance identified the best mortgage lenders for first-time home buyers by grading leading national lenders on a five-star scale from scores compiled from and averaged from public reviews. Criteria included interest rate, fees and loan costs, ease of application, rate transparency, loan product availability and options, customer experience, minimum down payment, minimum FICO scores, online features, time to approval, trustworthiness. Advertisers or sponsorships do not influence ratings.

Editorial disclosure for Mortgages:

The information in this article has not been reviewed or approved by any advertiser. The details on financial products, including interest rates and fees, are accurate as of the publish date. All products or services are presented without warranty. Check the lender's website for the most current information. This site doesn't include all currently available offers.