USAA Mortgage Review 2024 | Bankrate (2024)

USAA is a full-service bank that specializes in financial products, including mortgages, for current and former members of the military and their family members. Since its founding more than 100 years ago, USAA has originated over 1 million home loans. If you qualify, you can get preapproved online in just a few minutes.

How Bankrate scored USAA

Affordability: USAA showcases its latest mortgage rates online, so you can easily make comparisons between this lender and others. (Note: The rates displayed on the USAA website might not apply to your situation if your credit or finances don’t fit certain criteria.)
Availability: USAA caters to service members and veterans across the U.S.
Borrower experience: USAA is known for exceptional service, and its online capabilities lend convenience to the transaction.

Affordability: 9.8/10

USAA advertises mortgage rates online for all its loan products, and updates offers daily. The lender doesn’t charge an origination fee, but you’ll pay a funding fee if obtaining a VA loan.

Availability: 9.8/10

USAA works with service members and veterans nationwide, with a focus on VA loans (both conforming and nonconforming), although it does offer a conventional product, as well. You’ll need at least a 640 credit score to qualify, and must take out at least $50,000. A highlight: The lender offers options that include no mortgage insurance, no down payment and the ability to finance your VA funding fee.

Borrower experience: 8.9/10

USAA has been in operation for 100 years, with more than 1 million home loans originated since. The company isn’t accredited by the Better Business Bureau, but it received the highest marks for customer satisfaction from J.D. Power in 2021 and 2022. It offers plenty of online and mobile services, including the ability to submit questions and seek financial advice from USAA experts, along with a dedicated educational section on homeownership on its website. With the ability to upload statements and e-sign, you can easily apply for a mortgage online. The mortgage application gets prefilled based on your member profile, saving you time in the process.

How to apply for a mortgage with USAA

You can apply for a mortgage with USAA online or by phone at 800-531-0341.

Here are some tips to prepare for the process:

Check your credit report. It’s important to check your credit report before your lender does, in case there are errors that could impact not only whether you get preapproved but also your ability to get the best mortgage rate. Knowing your credit score also helps you decide what type of loan to apply for. If your score is in the very low 600s, for instance, an FHA mortgage might be best for you, as its standards are more lenient than those for conventional loans.
Gather personal and financial documents. With any lender, you must supply documentation about your income, assets and debts. This includes pay stubs and W-2s and account and loan statements.
Provide details about the property. You’ll need to provide the address of the home and submit to an appraisal. (If you’re refinancing, you might or might not need an appraisal.)

Refinancing with USAA

USAA offers both rate-and-term and cash-out refinancing options. This includes the VA Interest Rate Reduction Refinance Loan (IRRRLs), which comes with quite a few cost benefits for members: no origination fee, plus USAA covers the cost of an appraisal, title services and the VA funding fee. For conventional refinances, you’ll pay $1,295 for loans in the amount of $129,500 or more, or 1 percent of whatever you borrow below that threshold.

As an expert in the field of banking and financial products, I bring a wealth of knowledge and experience to the table. I've closely followed the trends and developments in the industry, staying updated on the latest information to provide accurate and reliable insights. My expertise extends to various financial institutions, including banks that specialize in specific services such as mortgages.

Key Concepts in the Article:

USAA Overview:
- USAA is a full-service bank specializing in financial products for military members and their families.
- Founded over 100 years ago, USAA has originated over 1 million home loans.
Affordability:
- USAA showcases its mortgage rates online for easy comparisons.
- Rates displayed might vary based on credit or financial criteria.
- No origination fee, but a funding fee applies to VA loans.
Availability:
- USAA serves service members and veterans across the United States.
- Focus on VA loans, but conventional products are also offered.
- Minimum credit score of 640 required, and a minimum loan amount of $50,000.
Borrower Experience:
- USAA is known for exceptional service.
- Online capabilities provide transactional convenience.
- Not accredited by BBB, but high customer satisfaction ratings from J.D. Power in 2021 and 2022.
- Offers online and mobile services, including financial advice and an educational section on homeownership.
How USAA Was Scored by Bankrate:
- Affordability: 9.8/10
- Availability: 9.8/10
- Borrower Experience: 8.9/10
Mortgage Application Process:
- Apply online or by phone at 800-531-0341.
- Tips for preparation: Check credit report, gather personal and financial documents, provide details about the property.
How to Prepare for the Mortgage Application Process:
- Check your credit report for errors.
- Gather income, assets, and debt documentation.
- Provide details about the property, including the address and appraisal.
Refinancing with USAA:
- USAA offers rate-and-term and cash-out refinancing options.
- VA Interest Rate Reduction Refinance Loan (IRRRL) with cost benefits for members.
- Conventional refinances have associated fees based on the loan amount.

In conclusion, USAA stands out for its affordability, availability, and positive borrower experience, making it a notable choice for military members and veterans seeking mortgage solutions. The bank's online capabilities, commitment to service, and various mortgage options contribute to its high ratings and reputation in the industry.