USAA Mortgage Review 2024

USAA overview

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, and it was the seventh-largest VA lender by volume in 2023. If you qualify, you can get preapproved online in just a few minutes.

Pros and cons of USAA

How Bankrate scored USAA

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 conventional mortgages 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. 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.

Refinancing with USAA

USAA offers both rate-and-term and cash-out refinancing options. This includes VA streamline refinances, which come 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.

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:

1. 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.
2. 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.
3. 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.)

• Methodology

  To determine a mortgage lender's Bankrate Score, Bankrate rates lenders on a scale of one (1) to five (5) stars — with five (5) the highest rating — based on a variety of factors relating to the lender's products and services. To assign our ratings, we assessed each mortgage lender across three core areas:

  • Affordability. Annual percentage rate (APR) - 80%; assistance for first-time homebuyers - 10%; down payment - 10%

  • Availability. Loan products - 50%; licensing - 40%; credit score - 10%

  • Borrower experience. Rate transparency - 45%; customer service - 25%; convenience - 10%; days to close - 10%; rate locks - 10%; reputation (bonus)

  Learn more about our methodology.