USAA Mortgage Review 2021
Please note: In response to the coronavirus pandemic, lenders are changing their requirements continuously. Although we strive for accuracy at the time of publication, please be sure to check with the lender for updated details on down payments, credit scores, etc.
At a glance
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4.3
Bankrate Score
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Find my best matchesLoans offered
Conventional, VA, jumbo, fixed-rate, adjustable-rate (ARM); refinancing options include rate-and-term refinancing and cash-out refinancingNationwide availability
Available in all U.S. states, the District of Columbia, Guam and the U.S Virgin IslandsMin. credit score required
620 for conventional loans; 620 for VA loansPros and cons
Pros
- Specializes in VA loans
- Offers VA IRRRL refinance loans
- Online prequalification in minutes
- First-time homebuyer programs
Cons
- Doesn't offer FHA or USDA loans
- Only available to military members, veterans and their families
- Only 11 brick-and-mortar locations in seven cities
USAA overview
USAA Federal Savings Bank is a full-service lender offering mortgage loan products to bank members. It specializes in loans for active military members, veterans and their families. Founded in 1922, USAA Federal Savings Bank also offers insurance, banking, investing and retirement services. USAA serves more than 13 million members of the military and their families. More than 20 percent of its employees are veterans or military spouses. The bank is headquartered in San Antonio, Texas.
Loan types
- Conventional
- VA
- Jumbo
- Fixed-rate
- Adjustable-rate (ARM)
- Rate-and-term refinancing
- Cash-out refinancing
Lender fees
USAA charges a funding fee for VA loans of anywhere from 0.5 percent to 3.6 percent of your loan amount, based on your down payment and whether this is your first use of a VA loan. These fees are standard for VA loans.
If you’re refinancing with a VA IRRRL, USAA will pay for the title, VA funding fee and appraisal fee, and there is no origination fee.
Minimum borrower requirements
USAA generally follows Fannie Mae’s underwriting guidelines for conventional loans. To qualify, borrowers typically need a credit score of 620 or better, a debt-to-income ratio (DTI) of at least 43 percent and a down payment of at least 5 percent.
However, USAA also offers a 30-year, 3-percent down conventional loan for borrowers who haven’t owned a home within the last three years. For that program, borrowers must complete a free homebuyer education course online before closing on their home.
USAA mortgages have a $50,000 minimum loan amount. It offers jumbo loans from $548,250 up to $3 million.
VA programs through the lender require no down payment and no PMI. To get the best rates, you’ll need a credit score of 740.
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