USAA Mortgage Review 2020
By Mitch Strohm
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Bankrate Score
4.3
0.0
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
- Specializes in VA loans
- Offers VA IRRRL (Interest Rate Reduction Refinance Loan) refinance loans
- Online pre-qualification
- 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
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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.