USAA Mortgage Review 2020

By Mitch Strohm

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Bankrate’s editorial team researches, reviews and rates lenders to help you find one that fits your needs. Our experts consider a range of factors, including rates, loan types, time to close, fees and more. Reviews are updated regularly. Bankrate is an independent, advertising-supported comparison service. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy.

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4.3

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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.

USAA Mortgage is a full-service lender offering mortgage options to existing members of the bank. It specializes in loans for active military members, veterans and their family. Founded in 1922, USAA Mortgage is the lending arm of the larger USAA Federal Savings Bank, which also offers insurance, banking, investing and retirement services. USAA serves more than 13 million members of the military and their families. A fifth of its employees are veterans or military spouses. It's headquartered in San Antonio, Texas.

Nationwide availability

Available in all U.S. states, the District of Columbia, Guam and the U.S Virgin Islands

Minimum credit score

620 for conventional; 620 for VA

Loan types

Conventional, VA, jumbo, fixed-rate, adjustable-rate (ARM); refinancing options include rate-and-term refinancing and cash-out refinancing

Pros

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

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Get paired with your best mortgage offers in 2 minutes or less.

USAA overview

Loan types

  • Conventional
  • VA
  • Jumbo
  • Fixed-rate
  • Adjustable-rate (ARM)
  • Refinancing including rate-and-term refinancing and cash-out refinancing

Lender fees

USAA charges a funding fee for VA loans of anywhere from 1.4 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.

Keep in mind that most lenders charge an origination and application fee, but those fees could vary based on loan type and your specific borrower profile. For example, quoted rates on USAA’s site for a $225,000 30-year conventional loan, assume a $1,295 origination fee for borrowers with a 740 credit score purchasing a single-family primary residence in Georgia.

Minimum borrower requirements

USAA generally follows Fannie Mae’s underwriting guidelines for conventional mortgages. 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 home 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 $510,400 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.

Get started with USAA

Borrowers can apply in person, online or by phone.

Hours

Monday - Friday: 7 a.m. - 10 p.m. CST Saturday and Sunday: 8 a.m. - 7:30 p.m. CST  Contact: 800-531-0341

USAA consumer rating and reviews

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