U.S. Bank Mortgage: Mortgage Types, It's Term's and how it Works

U.S. Bank Mortgage is a service provided by U.S. Bank that allows you to get a loan to buy a home. U.S. Bank Mortgage, located in Minneapolis and established in 1863, offers a range of banking services and mortgage options.

They provide different types of loans, including conventional, Federal Housing Administration, Department of Veterans Affairs, jumbo loans, and more. They have BBB rating.

Year of Establishment

This company was birthed in 1863. It has a customer service rating of about 3.5 out of 5 of its best features

Provides mortgage loans nationwide.
Allows you to apply online and track your loan progress online.
Assists U.S. Bank customers with closing costs.

Drawbacks

Does not offer personal rate quotes.
Affordable loan program not available in all states.

Comparing Top Mortgage Lenders

LENDER	LEARN MORE	MIN. DOWN PAYMENT	MIN. CREDIT SCORE

AmeriSave4.8	See Offers	3%	620
Farmers Bank of Kansas City	See Offers	5%	660
PenFed Credit Union4.8	See Offers	0% for VA loan	620

What Types of Mortgage Loans Does U.S. Bank Offer?

U.S. Bank has several mortgage loan programs, to include the following:

Conventional loans.
Adjustable-rate mortgages.
FHA loans.
VA loans.
Jumbo loans.
Investment property loans.
New construction loans.
Home equity loans and lines of credit.

Additionally, the lender has a loan option called the American Dream Loan (ADL), which is made to be an affordable loan platform. This loan allows for down payments as low as 3% without the need for private mortgage insurance. The program also provides financial assistance of up to $5,500 or 3% of the purchase price, which you can be use to make the down payment, closing costs, or necessary repairs and improvements.

How Does U.S. Bank Work?

To begin the mortgage process, you can easily get prequalified online, which will give you an idea of how much you can borrow without affecting your credit score. After that, you can complete the application online without the need to talk to a mortgage officer initially. If you prefer, you can also locate a local representative or request a call to initiate the process.

During the process, you will provide the necessary information and documents and maintain communication with the lender in case additional information is needed. Most of the closing process can be done virtually, but a few important documents will require in-person signing. U.S. Bank does not provide a specific timeframe for the typical mortgage closing process.

What Are U.S. Bank’s Terms, Fees and Conditions?

U.S. Bank does not publicly disclose the exact fees associated with loan origination, lender fees, and other closing costs since they can vary based on the specific loan. However, typically, closing costs can range from 2% to 5% of the loan amount.

Interest rates for each loan program are displayed on the lender’s website. It’s important to note that these rates are based on certain assumptions, including a credit score of 740 or higher, a down payment of 25% or more for conventional loans (or the minimum requirement for FHA and VA loans), and the potential purchase of up to one discount point. To find out your specific loan rate, you will need to start the application process.

Repayment options include 15 and 30-year terms for home loans and up to 30 years for home equity products. U.S. Bank typically requires a minimum down payment of 5% for conventional loans. However, the American Dream loan allows for a down payment of just 3%, and with a VA loan, you may be eligible for a down payment as low as 0%.

What Discounts Does U.S. Bank Offer?

If you are an eligible customer of U.S. Bank mortgage, you may qualify for a credit towards your closing costs. This credit amounts to 0.25% of the loan amount and can be deducted, with a maximum limit of $1,000. To be eligible for this credit, you must have an existing U.S. Bank first mortgage and either a U.S. Bank Smartly Checking account or an existing Gold or Platinum checking package.

How Can You Qualify?

The eligibility criteria for loan programs can be different, so it’s advisable to consult with a loan officer to understand the specific requirements related to credit score, down payment, debt-to-income ratio, and other relevant factors.

While most of U.S. Bank’s home loan options are available nationwide, it’s important to note that the American Dream loan is only offered in 25 states.

What Credit Score Do You Need?

U.S. Bank does not publicly disclose the specific minimum credit score requirements for its loans, as they can vary depending on the type of loan. However, as a general guideline, a credit score of 620 or higher is typically require for a conventional loan, while an FHA loan may be available with a score of 580 or higher. In some cases, with a 10% down payment, a credit score as low as 500 may be acceptable.

To determine your chances of approval, you have several options. You can go through the prequalification process, submit a loan application, or speak directly with a mortgage loan officer at U.S. Bank. These steps will provide you with a better understanding of your eligibility and the specific requirements for your situation.

Where Does U.S. Bank Operate?

U.S. Bank provides home loans in all 50 states, except for the American Dream loan, which is available exclusively in the following states: Arizona, Arkansas, California, Colorado, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Minnesota, Missouri, Montana, Nebraska, Nevada, New Mexico, North Dakota, Ohio, Oregon, South Dakota, Tennessee, Utah, Washington, Wisconsin, and Wyoming.

Is U.S. Bank Reputable?

U.S. Bank has a B+ rating from the Better Business Bureau. However, on Trustpilot, a customer review platform, the lender has received a low rating of 1.3 out of 5 stars based on over 600 customer reviews.

In 2022, the Consumer Financial Protection Bureau received 559 mortgage-related complaints about U.S. Bank. Some of the common issues reported by customers included difficulties during the payment process and challenges in making mortgage payments. U.S. Bank promptly responded to all the complaints received. Out of these complaints, 398 were close with an explanation, 120 received nonmonetary relief, and 41 received monetary relief.

How Is U.S. Bank’s Customer Service?

Prospective borrowers and existing customers can easily contact U.S. Bank’s customer service by calling their dedicated phone line. Another option is to fill out an online form to request a call from a mortgage officer at your convenience

What Are Some of U.S. Bank’s Online Features?

Applying for a U.S. Bank mortgage loan can be done entirely online. You will have the convenience of uploading necessary documents, tracking the status of your loan application, and electronically signing disclosures. Additionally, most of the closing process can be conduct online.

Once your mortgage is successfully closed, you can easily manage your account through U.S. Bank’s website, accessing various features and services online.

U.S. Bank Mortgages Are Best for:

U.S. Bank customers.
Homebuyers who want to apply online.
Homebuyers looking for affordable home loan options.

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U.S. Bank Mortgage: Mortgage Types, It’s Term’s and how it Works