Get prequalified for a basic estimate of what you may be able to borrow.
These rates and APRs are current as of $date and may change at any time. They assume you have a FICO® Score of 740+ and a down payment of at least 3.5%, that the loan is for a single-family home as your primary residence and that you will purchase up to one mortgage point.
Mortgage points, or discount points, are a form of prepaid interest you can choose to pay up front in exchange for a lower interest rate and monthly payment. One mortgage point is equal to about 1% of your total loan amount, so on a $250,000 loan, one point would cost you about $2,500. Connect with a mortgage loan officer to learn more about mortgage points.
Use our mortgage calculator to get an estimate of your monthly mortgage payment.
Federal Housing Administration (FHA) mortgages are low down payment, fixed-rate home loans with credit score requirements lower than those of conventional mortgages. The FHA guarantees these loans to approved lenders with the intent of helping low-to-moderate income buyers. A 30-year FHA mortgage has a term life of 30 years and a 15-year term is also available.
First, the FHA determines your eligibility to apply for an FHA loan. Then, after meeting the FHA criteria to apply, you’ll also need to meet the credit criteria of the approved lender, like U.S. Bank. These credit requirements vary by lender but usually include things like credit score and down payment amount. Our experienced mortgage loan officers can assist you with your application and answer any questions you have.
There are many FHA loan benefits and considerations you should keep in mind when evaluating your loan options.
Credit requirements for an FHA loan vary by lender. At U.S. Bank, with a credit score of 640 or higher, you can apply for an FHA mortgage with a down payment of 3.5% of the loan amount. Talk with a U.S. Bank mortgage loan officer to learn more about qualifying for an FHA loan.
FHA loans are popular with first-time homebuyers, but being a first-time homebuyer is not required for eligibility. Below is a summary of the requirements, but exceptions may apply.
As an FHA borrower:
The property must:
All FHA loans must have mortgage insurance. This is regardless of the borrower's credit score and down payment. The FHA uses these funds to cover the costs of defaults.
FHA mortgage insurance is usually more expensive than the private mortgage insurance (PMI) required on a conventional loan. Plus, you must maintain the FHA loan insurance for a minimum of 11 years. By contrast, for applicable conventional loans, you must maintain private mortgage insurance (PMI) only if your down payment is below 20% of the loan amount or until your home equity reaches 20%.
There are two types of FHA mortgage insurance:
Talk with a U.S. Bank mortgage loan officer to learn more about FHA mortgage insurance.
There are important differences between an FHA loan and a conventional loan. Which one is better for you depends upon your financial situation. Consider the following:
An experienced U.S. Bank mortgage loan officer can help you determine the best option for you.