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.
- Adjustable-rate (ARM)
- Rate-and-term refinancing
- Cash-out refinancing
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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