With competitive rates and fees as well as high customer satisfaction ratings, USAA has an excellent reputation as a mortgage lender. But its available only to eligible military members.
OverviewGiven its focus on military membership, USAA is an expert in VA loans. But it provides other loan options, too — like a first-time homebuyer program and vacation and investment property financing. It also has an unbeatable reputation for customer service.
Despite these additional benefits, USAA’s mortgage rates and fees are generally comparable to those of other major lenders. But remember, rates vary a lot from person to person.
To compare your own rate and closing costs from USAA, you must obtain a custom rate quote.
Compared to other loan types, VA mortgages typically have lower interest rates. Additionally, mortgage insurance doesn’t require you to pay monthly premiums. So long as you are eligible for a VA loan, USAA has an advantage when it comes to mortgage rates and costs.
Conventional loans, whether obtained through USAA or another lender, typically have higher interest rates.
Average 30-year mortgage rates at major lenders
| USAA Mortgage | Rocket Mortgage | Wells Fargo | Freedom Mortgage | |
| Avg 30-Yr Interest Rate, 20211 | 2.87% | 3.00% | 3.14% | 2.66% |
| Median Total Loan Costs, 2021 | $3,660 | $4,670 | $3,600 | $3,880 |
| Median Origination Fee, 2021 | $250 | $2,430 | $1,330 | $0 |
Average rate and fee data were sourced from public rate and fee records required by the Home Mortgage Disclosure Act (HMDA).
USAA Mortgage review for 2022
25 military officers who wanted to insure each other’s cars founded USAA Bank in 1922. With its headquarters in San Antonio, Texas, it has grown to offer more than just insurance to its 13 million members nationwide.
When it comes to mortgages, USAA has a great reputation. It scored highest in J.D. Power’s 2021 mortgage satisfaction study, which ranks lenders on everything from their customer service to their pricing and loan products. In fact, USAA scores highest on this survey just about every year. Customers seem to have very little to complain about. That’s likely because USAA is so specialized. It only serves current and former U.S. armed forces members and is uniquely attuned to their needs.
That means USAA has extensive knowledge of VA loans, which are frequently the best option for qualified home buyers in terms of mortgage lending. With backing from the U. S. Department of Veterans Affairs, VA loans typically have no down payment and no mortgage insurance requirements, flexible credit and income requirements, and competitive rates.
The fact that fewer people can use USAA is arguably its biggest flaw. In order to access USAA’s financial products, you must sign up. You can only become a member if you’re eligible.
Veterans and active duty or honorably discharged members of the following groups are eligible to join USAA:
Many widows, widowers, and unremarried former spouses can also qualify.
Working with USAA Mortgage
The USAA mortgage website appears to be just as cutting-edge, educational, and welcoming as any other. However, it actually provides less functionality than some more creative lender websites.
It’s true that if you’re already a USAA member, you can get preapproval for a new home loan within minutes, all online. Additionally, there are helpful articles for VA mortgage borrowers online. But other web-based services currently seem limited.
As opposed to many other lenders, you should probably anticipate spending more time on the phone with your real estate coordinator and USAA loan officer. A more conventional mortgage application process will be perfectly adequate for some borrowers. But tech-lovers might find the experience old-fashioned.
USAA Mortgage customer service reviews
USAA really stands out when it comes to customer satisfaction. J. D. Due to the limited availability of USAA to many borrowers, Power doesn’t technically include the company in its customer satisfaction ranking. But it gives USAA Mortgage a score nonetheless. And, USAA shines. This year, it outperformed Guild Mortgage by 22 points with a score of 906 on a scale of 1,000.
Mortgage-related complaints at major lenders
| CFPB Complaints, 20214 | Complaints Per 1,000 Mortgages, 20215 | J.D. Power Satisfaction Score, 20216 | |
| USAA Mortgage | 28 | 0.57 | 906/1,000 |
| Rocket Mortgage | 376 | 0.24 | 876/1,000 |
| Wells Fargo | 488 | 0.58 | 832/1,000 |
| Freedom Mortgage | 262 | 0.35 | 829/1,000 |
Less than one complaint per 1,000 mortgages is another indicator of how few customer complaints USAA receives from the Consumer Financial Protection Bureau (CFPB).
USAA Mortgage loan products
Almost everyone who meets the requirements for USAA membership is also qualified for a VA loan. Given the fantastic deals those loans typically offer, it is not surprising that USAA offers a large number of them.
The bank has amassed substantial knowledge and expertise as a specialist lender of VA mortgage products over the years. Its portfolio also includes other loan types, the majority of which have low down payments:
Additionally, USAA can assist you in financing or refinancing vacation homes and investment properties.
Does USAA offer HELOCs?
Home equity loans and home equity lines of credit (HELOCs) are not provided by USAA. However, USAA offers homeowners the option to refinance with either a conventional cash-out or a VA cash-out. This is an additional way to access your home’s equity and use the cash value to fund a child’s college education, a large purchase, or other expenses.
A cash-out refinance, as opposed to a home equity loan, necessitates restarting your mortgage. Therefore, before agreeing to one, you should carefully consider the long-term costs of principal and interest.
VA IRRRL program (Streamline Refinancing)
Among its refinancing options, USAA provides the VA Interest Rate Reduction Refinance Loan. With the VA IRRRL, VA loan holders can more easily refinance their loans with a lower interest rate and monthly payment. You can refinance a VA loan using the VA IRRRL without requiring a home appraisal, an income verification, or proof of employment.
IRRRL loans are exempt from loan origination fees, and USAA will pay the VA funding fee. This usually makes it quicker and less expensive than a conventional refinance. You might still be required to get a home appraisal if you’re getting a VA IRRRL from USAA but your initial mortgage was from a different lender.
Unfortunately, USAA does not offer VA construction loans. Find another lender that offers this type of financing if that’s what you need. Be aware that VA construction loans are somewhat more difficult to obtain than most other types of home loans.
Where can you get a mortgage with USAA Mortgage?
You’ll need to be extremely fortunate to have a USAA branch office nearby your house. It has only five.
On the other hand, USAA has almost a century of experience offering financial services online.
All 50 states and the District of Columbia offer USAA members the option to start the mortgage application process in person, over the phone, or online. And you might find yourself spending a lot of time on the phone due to the website’s limited functionality. But the business’s outstanding customer satisfaction rating suggests that’s not an issue for its members.
If you qualify for a VA loan, USAA is a good mortgage lender to look into. In J. D. USAA consistently receives the highest ratings from its mortgage customers in Power’s satisfaction survey. It would be a great resource for all of your VA loan needs because of its special expertise in serving veterans, active duty service members, and their families. Just make sure to compare USAA rates with those of other reputable VA lenders to ensure that its costs are reasonable for you. When comparing VA loans, Veterans United and Navy Federal Credit Union are both solid choices.
You must be a current U.S. citizen to obtain a USAA mortgage. S. a service member, a veteran, the surviving spouse of a service member, or have some other connection to the military Additionally, VA loans have their own unique eligibility requirements, typically requiring a minimum credit score of 620. Although USAA also provides non-VA loans (such as conventional mortgages), you must be a member of the military to work with the company.
USAA mortgage rates are generally lower than other major lenders. Because of the Department of Veterans Affairs’ support, USAA primarily provides VA loans, which have interest rates that are lower than the market average. But to find yours, you’ll need to request a rate quote because rates vary by customer and loan amount.
USAA will not pay your closing costs for you. But there are other ways to get closing cost assistance. You can apply for grants for closing costs or down payment assistance. You could ask a family member for gift funds. Additionally, if you’re refinancing, you might be able to add the closing costs to the loan balance so that you can pay them off over time. Talk to your USAA loan officer about options.
For a mortgage with USAA, you must have a FICO score of at least 620.
Technically, the Department of Veterans Affairs does not set a minimum credit score requirement for VA loans. However, most lenders set their own minimums. For a VA loan, many mortgage companies, including USAA, demand at least a 620 FICO score. Before applying for a mortgage, make sure to check your credit report for errors and make on-time payments on debts like credit card and personal loan bills.
USAA’s underwriting process, like that of other mortgage lenders, will require you to provide proof of your earnings and assets. Bank statements, investment balance sheets, W2 forms, and pay stubs may be requested by your loan officer. You’ll need a Certificate of Eligibility for a VA loan as proof that you qualify for the VA home loan program. COEs are simple to obtain; many lenders, such as USAA, will assist you with the paperwork filing process.
Is USAA the best mortgage lender for you?
If you meet the requirements for USAA membership, which include being a current or former U S. USAA may be the best mortgage lender for you if you are in the armed forces or have an eligible spouse. It has outstanding ratings for customer satisfaction and affordable VA mortgage rates.
But keep in mind that rates vary widely depending on the borrower and the company. Get a few Loan Estimates from different lenders even if you’re set on using USAA for your mortgage to ensure you’re getting the best rate and closing costs.
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FAQ
What is the minimum credit score for USAA VA loan?
With a focus on VA loans (both conforming and nonconforming), USAA works with service members and veterans nationwide. It also provides a conventional product. To be eligible, you must have a credit score of at least 640 and borrow at least $50,000.
What is the minimum credit score for a VA loan?
There is no minimum credit score requirement. Instead, VA demands that a lender examine the full loan profile. Visit www. to view the complete VA credit requirements for more details. benefits. va. gov/warms/pam26_7. asp. How Can You Start the Process?.
What credit score is needed for a VA loan 2022?
A VA loan does not have a minimum credit score requirement, but the majority of mortgage lenders require a FICO credit score of at least 620. Some lenders will approve borrowers with lower scores, but they may need to pass more scrutiny and requirements. At Veterans United Home Loans, a credit score of 620 is what we typically look for.
Can you get a VA home loan with a 600 credit score?
The Verdict: Lenders Determine Their Own Credit Score Needs For VA Loans The VA doesn’t have a minimum credit score. Instead, lenders can set their own requirements. At Rocket Mortgage, the minimum qualifying credit score is 580.