U.S. Bank: 2025 Home Equity Review

U.S. Bank overview

Headquartered in Minneapolis, U.S. Bank is one of the oldest (dating back to 1863) and largest banks in the country. It operates more than 2,000 branches in 26 states, but also has a robust online presence: Approximately 65 percent of all its loan applications – including home equity loans – originate online, the lender says.

Home equity products offered

U.S. Bank offers two home equity products: a line of credit and a loan. While the HELOC has a variable rate, it also offers a fixed-rate option so you can convert any or all of your line into a loan with fixed monthly payments. You can have up to three fixed-rate locks in place at any given time.

With a U.S. Bank HELOC, you’ll choose to pay a minimum of either 1 percent or 2 percent of the balance each month, applied to interest and principal, during the draw period. You might be able to make interest-only payments, but that will depend on your credit score.

U.S. Bank’s fixed-rate home equity loans allow customers to borrow a maximum of 80 percent of the home’s equity (calculations include their first mortgage). Loan terms can go up to 30 years.

How Bankrate scored U.S. Bank

Affordability: 5/5

• Rates: U.S. Bank offers extremely competitive home equity borrowing rates. There is one catch, however: To qualify for the lowest rates available, you’ll need to set up automatic payments from a U.S. Bank checking or savings account.
• Fees: There are no closing costs for home equity loans or HELOCs, which means you’ll save a lot of money versus some competitors that charge hefty origination fees. However, if you’re opening a HELOC, you’ll need to make sure it remains open for at least 30 months to avoid the potential for a 1 percent early closure fee. Additionally, HELOCst carry a $75 annual fee, though that can be waived.

Because of some of the lowest rates in the marketplace and the absence of closing costs, U.S. Bank scores a perfect 5 out of 5 for affordability.

Availability: 4/5

• Loan products: U.S. Bank offers both HELOCs and home equity loans, and an option to convert HELOC balances to a fixed rate.
• Credit score: You’ll need at least a 660 to qualify for either of U.S. Bank’s home equity products, which is about average. However, the minimum to get the best rates is 730.
• Loan minimum: The $25,000 minimum is a typical amount among home equity lenders.
• Footprint: U.S. Bank’s home equity loans are available throughout the U.S. HELOCs, however, have three exclusions: Residents in Texas, South Carolina and Delaware are not eligible.

U.S. Bank’s diverse mix of home equity loans and convertible HELOCs offer a product that can fit nearly any borrower’s needs. However, the bank’s higher credit score requirement and higher loan minimum dropped its score to a 4 out of 5 for availability.

Borrower experience: 3.4/5

• Rate transparency: U.S. Bank displays rates online, unlike many lenders. However, there are some crucial details buried in the fine print.
• Convenience: You can prequalify online or set up an in-person appointment to discuss your options at a bank branch. You can also do a basic application over the phone.
• Customer service: U.S. Bank doesn’t indicate how long it’ll take for your loan to close. Funds are available in the standard three days after closing.
• Fixed-rate options: If you open a HELOC, you’ll have the option to lock in your interest rate in the future on up to three portions of your debt.

While U.S. Bank checks just about all the boxes – convenient application process, the ability to get in-person support and the flexibility for fixed rates on a HELOC – there is one issue: You’ll have to open a U.S. Bank checking account to manage your payments if you want the lowest rates and to avoid fees. That requirement means you may need to determine if you want to deal with the hassle of reconfiguring your banking needs, and that’s why — along with an indeterminate closing period — we gave U.S. Bank a 3.4 out of 5 for borrower experience.

U.S. Bank reputation

U.S. Bank is the fifth-largest commercial bank in the country, which means its reputation can differ drastically. J.D. Power’s U.S. Retail Banking Satisfaction Study regularly puts it in the top 10 in several regions, including no. 1 in California for four years in a row. In contrast, the bank has a poor 1-star rating on Trustpilot — though many of the issues are related to credit cards and checking accounts, not home loans. 

What consumers say about U.S. Bank

The vast majority of customers who applied for home equity products with U.S. Bank told Bankrate that they were pleased with the experience. In addition to highlighting the ease of the online application, most reported positive interactions with loan officers, too, especially their ability to “literally walk me through the process, so that I did not have to …stress over the situation.” “They also weren't pushy at all,” another says. A few did mention that the bank seemed “a little long with service times.”

How to qualify for a home equity loan with U.S. Bank

All loans are subject to approval, and your APR will depend on credit history, loan amount, property value and property location. You’ll need to have homeowners insurance, and at least 20 percent equity in your home. U.S. Bank requires a minimum credit score of 660, but in order to get the best rate, you’ll have to have a credit score that’s much higher: at least 730.

How to apply with U.S. Bank

You can apply for any of the U.S. Bank home equity products online, by phone or at a branch. You can also apply through the mobile app. You can complete a basic application online after you’re prequalified, by calling 844-957-1476. Or you can request a call.

After an initial review, a U.S. Bank branch officer will contact you for any additional documentation necessary to underwrite your loan.

Next, you will have your property appraised, and then your application will go through a final approval. Depending on the product, you might have to visit a branch to close. Funding will be available three days after closing.