- The Ascent
- Best Mortgage Lenders
- U.S. Bank Mortgage Review
The Ascent is reader-supported: we may earn a commission from offers on this page. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation.
U.S. Bank is a versatile lender with options for nearly every customer. It offers a variety of mortgage loans nationwide, including a few hard-to-find loans. Plus, eligible U.S. Bank customers can get a significant discount on mortgage closing costs. Read our full U.S. Bank mortgage review to find out whether U.S. Bank might be the best mortgage lender for you.
Best for: Customer service
US Bank Mortgage
Rating image, 4.0 out of 5 stars.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor.
Bottom Line
US Bank has a great reputation and customer service. It offers a variety of loan types and has more perks if you're a banking customer.
Full U.S. Bank Mortgage review
This mortgage lender is a good fit for: Current U.S. Bank customers and borrowers looking for down payment assistance. U.S. Bank is also a great option for someone looking for a construction loan or a mortgage for an investment property.
Pros
- Customer service leader
- Customer discount
- Prequalification with no credit check
- Harder-to-find loans
- Down payment assistance
Cons
- Hard to find out how to qualify without talking to a loan officer
- No information online about special low down payment loans
- Most consumers won't qualify for the published rate
Top perks
Here are a few of the top reasons to get a mortgage from U.S. Bank:
Reputation
U.S. Bank scores well above average in the J.D. Power 2020 U.S. Primary Mortgage Servicer Satisfaction Study, with 802 points versus the industry average of 781. This indicates customers tend to have a good experience when U.S. Bank services a loan. U.S. Bank scores a little below average in J.D. Power's mortgage origination study (848 points versus the industry average of 856). We don't consider that a big drawback, because it's still a great score and the competition is stiffer when it comes to making new loans.
Customer discount
U.S. Bank offers a relationship bonus to its current customers. If you hold a U.S. Bank Personal Checking Package or have an existing U.S. Bank mortgage, you may be eligible for a discount on closing costs. The discount is 0.25% of the new loan amount, up to a maximum of $1,000. For example, if your loan is for $200,000, you can save $500.
5-minute prequalification
You can enter your personal information on U.S. Bank's website and get a basic loan estimate. It takes about five minutes, and the response is instant. This isn't a full application and won't affect your credit score. It's also not a commitment to lend, but it can let you know where you stand.
Loan variety
U.S. Bank offers most popular mortgage loans, as well as some that can be harder to find:
- Conventional loan
- FHA loan
- VA loan
- Jumbo loan
- Home equity loans and home equity lines of credit
- Fixed-rate mortgage
- Adjustable-rate mortgage
- Construction loan
- Investment property loan
What could be improved
No mortgage lender is perfect. U.S. Bank is no exception. Before getting a mortgage from this lender, consider these points:
Transparent lending information
U.S. Bank doesn't publish details about what it looks for in an applicant on its website. Also, U.S. Bank says it works with various agencies to help borrowers get down payment assistance, but there's no specific information. For example, a borrower will have to speak to a loan officer to find out how to qualify and what the minimum down payment might be. Not everyone wants to start their mortgage loan research with a call from a loan officer (and their name on a marketing list). Admittedly, U.S. Bank is not unusual in this.
Published rates won't apply to most borrowers
All lenders keep their best rates for the most qualified applicants, and in general, consumers with excellent credit scores will get the lowest mortgage rates. Each lender sets its own cutoff between "good" and "excellent." U.S. Bank says that 740 is an excellent credit score.
As such, you'll likely need a credit score of at least 720, perhaps even 740, to land in that low rate sweet spot. Since the average credit score in the U.S. is 706, the published rates on U.S. Bank's website won't apply to most people.
How to qualify
One of the first steps in applying for a mortgage is to check your credit score and credit reports. With a bit of legwork, you'll be better prepared and have a bigger chance of success.
The main things the lender will look for in your loan application are your existing debt, your income, your credit score, and your down payment (or equity, if you're doing a mortgage refinance).
- Debt-to-income ratio (DTI). U.S. Bank wants your DTI to be no higher than 43%. That means your required monthly debt payments, including the payment for the desired mortgage, cannot exceed 43% of your income. That may change in 2021. Because of a mortgage rule change at the federal level, many lenders now allow a DTI of 50%.
- Income. If you have pay stubs and tax returns to show sufficient income, you'll qualify for more loan programs. That doesn't mean gig workers and self-employed people are out of luck. However, if you need to document your income in a nontraditional way, you may need to find a lender that offers non-QM loans. U.S. Bank does not advertise non-QM loans.
- Credit score. For a conventional loan at U.S. Bank, you need a minimum credit score of 620. When you speak to lenders, it's also worth asking what credit score you'd need to get a lower rate. If you find out you're near the next level, consider taking steps to improve your credit before you apply. A lower rate could save you a significant amount of money over the life of the loan.
- Down payment. A down payment of 20% or more on a conventional will allow you to avoid private mortgage insurance. A bigger down payment also means you can borrow less and get out of debt sooner. If 20% is too high, don't stress: You might still qualify with less money down. At U.S. Bank, the average down payment is 11%.
If you're a U.S. Bank customer be sure to tell your loan officer about your existing accounts in case you can qualify for the discount on closing costs.
Alternatives to consider
Guaranteed Rate Mortgage has a handy affordability calculator that makes it easy to find out what mortgage interest rate you'll qualify for. Enter basic details about yourself and the loan you want (but no contact information). You can then change the down payment size, purchase price, property type, credit score, and other details to see how they might affect your eligibility and rate. Guaranteed Rate offers mortgages with competitive rates nationwide.
PennyMac Mortgage has transparent rates and excellent educational tools. You don't have to dig very deep on PennyMac's website to find helpful, detailed information about how to qualify for a mortgage, how to apply, and how to compare mortgage loan options. PennyMac offers mortgages nationwide.
U.S. Bank Mortgage is right for you if:
U.S. Bank Mortgage offers competitive rates on a range of mortgage loans and is a great choice for existing U.S. Bank customers who qualify for the closing cost discount. It's also a good place to shop for niche mortgage products such as a construction loan or investment property loan. And if you're having a hard time getting over the down payment hurdle, U.S. Bank promises to help navigate down payment assistance programs.
About the Author
Kimberly is a personal finance writer/editor, consumer credit expert, and financial literacy advocate. She has lots of degrees and personal experience that make her really good at helping people separate the good from the bad in financial products and habits. She likes to roller skate. Tweet her @rotterwrites.
Share This Page
We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team. The Motley Fool has a Disclosure Policy. The Author and/or The Motley Fool may have an interest in companies mentioned.
