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USAA mortgage review 2024
The Yahoo view: A USAA mortgage may be a wise choice if you’re eyeing a VA or conventional loan and qualify for USAA membership. It's one of the best VA mortgage lenders out there — it charges no origination fees on VA products and focuses primarily on military members and their families.
USAA is a long-standing financial institution that serves military members, veterans, and their family members. It offers banking, insurance, retirement, and investment services to these consumers, as well as VA and conventional mortgage loans.
To use any of USAA’s products or services, you must become a member. Only U.S. military members and veterans, pre-commissioned officers, and spouses or children of these are eligible.
In this article:
Key benefits
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USAA offers a variety of VA loan products, including purchase loans, jumbo loans, Streamline Refinances, and cash-out refinances.
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USAA also offers a low-down-payment loan for first-time home buyers and several conventional loan options.
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The lender charges no origination fees on VA loan products.
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The company’s Home Resource Library can help you better understand the buying and financing process.
Need to know
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Only U.S. military members, veterans, precommissioned officers, or spouses/children of these parties are eligible for USAA products.
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USAA offers only VA and conventional loan products. It does not have USDA or FHA loan programs.
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USAA’s physical locations are limited to four states: Colorado, New York, Maryland, and Texas. It still offers mortgages nationwide, though, and you can apply online.
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USAA doesn’t offer conventional loans or refinancing in Hawaii or any cash-out refinancing in Texas.
USAA home loan types
USAA for VA loan home buyers
USAA offers insurance, banking, retirement, and investment services for military members, veterans, and their families, so it’s no surprise that the VA loan — for those who are in or have served in the U.S. military — is its primary lending product. In fact, according to Home Mortgage Disclosure Act (HMDA) data, VA loans accounted for over 64% of USAA’s purchase mortgage originations in 2023.
The lender offers a variety of VA products, including VA purchase loans, VA jumbo loans, VA streamline refinances (IRRRLS), VA jumbo streamline refinances, and VA cash-out refinances. USAA requires no down payment or origination fee on any of these loans.
USAA for home equity lending
USAA doesn’t offer home equity loans or home equity lines of credit (HELOCs), but it does offer cash-out refinancing — another strategy for borrowing from your home equity. The lender offers VA cash-out options, including traditional and jumbo, and conventional cash-out refinances.
With cash-out refinancing, you’ll take out a new mortgage larger than your current one. The new loan pays off the old one and replaces it entirely. You’ll then be paid the difference between those two balances and can use the cash however you see fit.
Learn more: HELOC versus home equity loan
USAA mortgage rates
USAA is pretty upfront about its mortgage rates and makes them easy to find on its website. You’ll see sample rates on the “Home Loans” page and the “Mortgage Rates” and individual loan pages. Sample rates are available for all loan programs that the lender currently offers. For example, you can find USAA VA mortgage rates on its “VA Loan” page.
On the Mortgage Rates page, you’ll find the numbers broken down into interest, APR, and discount points — giving you insight into how USAA came up with its sample rates. USAA doesn’t go into its assumptions for these rates, but it does offer a disclaimer that they “are not available to every borrower.” The lender also doesn’t give you the option to see a sample rate without discount points. You’ll need to fill out USAA’s online application for a more accurate rate quote.
Dig deeper: APR versus interest rate — What you need to know when mortgage shopping
Applying for a mortgage with USAA
USAA lets you apply for a mortgage online, so the process can be fairly quick and simple. You may also contact a USAA loan officer by phone to start your application or visit one of the lender’s five financial centers. These are located in Colorado Springs, Colo.; West Point, N.Y.; Highland Falls, N.Y.; Annapolis, Md.; and San Antonio, Texas.
USAA home-buyer tools and calculators
There is a USAA mortgage calculator that you can use to determine what your monthly payment may be based on your home price, interest rate, down payment, and loan term. You can also add in taxes, insurance, and homeowners’ association dues for a more accurate number.
This is the lender's only mortgage-related calculator, though it does have a fairly comprehensive home-buying resource library you can browse for more guidance.
Dig deeper: Try the free Yahoo Finance mortgage calculator
How USAA compares to other mortgage lenders
USAA mortgages vs. Navy Federal mortgages
USAA and Navy Federal are membership-based institutions only open to certain military and government personnel (and their loved ones). But at the mortgage level, Navy Federal outshines its counterpart. The company offers a wider array of home loan options, including home equity loans and HELOCs.
Navy Federal also has more calculator tools, special offerings (like a no-refinance rate drop), and live chat help, which USAA does not.
USAA mortgages vs. Veterans United Home Loans
Veterans United Home Loans is similar to USAA in that it only lends to a select group of military and government personnel. The big difference is that Veterans United offers just one product — the VA loan. The company is the nation’s No. 1 lender by volume in the space, and in 2023, originated over 58,000 VA loans totaling more than $144.5 billion, according to the Department of Veterans Affairs. Veterans United also offers a 24/7 helpline, as well as credit counseling and Realtor services, which USAA does not.
If you want a conventional loan or investment, banking, or insurance services, though, USAA is your only choice among the two.
Veterans United Home Loans review
USAA mortgage FAQs
What credit score do you need for a USAA mortgage?
The credit score you’ll need depends on the USAA loan program you choose. With VA loans, the government doesn’t set a hard minimum, but USAA prefers a minimum 640 credit score. For conventional loans, you’ll usually need at least a 620 to qualify.
Does USAA pay closing costs?
USAA doesn’t cover closing costs, but it also doesn’t charge one of the most common ones — the origination fee (at least on VA loans). This could save you quite a bit on your up-front mortgage costs.
Who qualifies for a USAA mortgage?
To get a USAA mortgage, you’ll first have to become a USAA member. Only U.S. military members, veterans, precommissioned officers, and the spouses/children of these parties are eligible.
Does USAA have an origination fee for mortgages?
USAA does not charge origination fees on its VA mortgages, which comprise the bulk of its lending business. Origination fees typically cost between 0.50% and 1% of the total loan amount.
What are USAA mortgage interest rates?
USAA’s mortgage interest rates change often, but the company displays them prominently on its website and loan pages. Keep in mind that advertised rates often assume a high credit score and include discount points, so they may not accurately reflect the exact rate you’ll qualify for.
This article was edited by Laura Grace Tarpley
