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USAA Bank Mortgage might be for you if: You are a USAA member or are eligible for USAA membership. Generally speaking, USAA's prices are difficult or impossible to beat. If you qualify, a USAA Bank Mortgage should be on your comparison list. Read our full review to find out if a USAA Bank Mortgage is right for you.
Best for: Borrowers who are affiliated with the military
USAA Bank Mortgage
Bottom Line
USAA Bank Mortgage has a limited menu of mortgage options, but its offerings are very competitive. You'll be hard-pressed to find better deals on the products USAA offers, including mortgages. The only downside is that USAA is members-only, and you need to have a military affiliation to be eligible to join. If you qualify, check out USAA when you shop for your loan.
Min. Credit Score
620
Min. Down Payment
0% - 3%
Key Features
Serves the military communities
VA loan experts
No origination fee for VA loans
Loan Types
Conventional
VA
Jumbo
Fixed Rate Terms
10y, 15y, 20y, 30y
Adjustable Rate Terms
N/A
Top Mortgage Lender
It's important to consider multiple mortgage lenders to find a good fit for you. We've listed one of our favorite lenders below so you can compare your options:
Lender
Min. Down Payment
Credit Score
Next Steps
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. = Best = Excellent = Good = Fair = Poor
At Motley Fool Money, mortgages are rated on a scale of one to five stars, with five stars meaning "best." We primarily focus on rates and fees, customer service, and loan versatility. This includes factors like application process, customer service channels available, and a variety of loan products.
I'm a mortgage researcher for The Motley Fool, which means I've written in-depth reviews about dozens of major mortgage lenders who operate nationwide. I'm also an Accredited Financial Counselor®, which means it's my job to help you choose the best financial path forward. I search beyond the advertisements to find out what makes each lender shine, so you can get closer to choosing the best mortgage lender for you.
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Full USAA Bank Mortgage review
USAA Bank Mortgage (NMLS # 401058) has a long-standing reputation for delivering excellent value and outstanding customer service. USAA focuses entirely on serving the military community with its banking, insurance, and investment products. You can get a VA loan or a conventional mortgage here.
Pros
VA loan experts
Low down payment mortgages
Low or zero origination fee
Cons
Members only
No USDA loans
No online custom rate quote tool
No home equity loan options
USAA Bank Mortgage rates
USAA's mortgage rates trend lower than the national average. Like most lenders, USAA charges mortgage discount points to get the lowest advertised mortgage interest rate. Each point costs 1% of the loan amount.
In exchange for that fee, you get a permanent discount off your mortgage interest rate. VA loan rates are a bit lower than conventional loan rates.
USAA Bank Mortgage refinance rates
USAA's refinance rates trend lower than the national average. When we checked, the VA refinance rates were the same as the VA purchase loan rates.
The rate for a conventional refinance was a little higher than the VA loan rate. The rate for a cash-out refinance tends to be a little higher than for a rate-and-term refinance.
USAA Bank Mortgage fees
Compared to other lenders, USAA's fees and rates are very competitive, and may in fact be hard to beat.
There is no fee to apply for a USAA mortgage. USAA charges a flat origination fee of $1,295 for conventional loans over $130,000.
Borrowers are responsible for paying the following types of fees when applicable:
Appraisal fees
County and state fees
Certificate fee
Homeowners insurance
Property taxes
Title fees
Closing costs vary but typically land at around 2%-3% of the loan.
USAA Bank Mortgage customer service
USAA has consistently received some of the highest ratings in the industry for mortgage origination customer satisfaction. You'll find mixed reviews online, but few are focused on the mortgage process. A few unhappy borrowers did not like that USAA doesn't always service its own mortgages.
How to apply for a mortgage with USAA Bank Mortgage
You can start the mortgage process by getting pre-approved online or over the phone (800-531-8722). USAA says that it only takes a few minutes to get pre-approved.
Pre-approval involves a hard credit check, so you may want to wait to get pre-approved until you're ready to compare multiple lenders. That's because although each hard credit check could knock a few points off your score, multiple hard checks from mortgage lenders made within a short time frame are counted together as a single hard inquiry. The time frame is 14 to 45 days, depending on which credit score is doing the counting, so it's best to keep your mortgage shopping to 14 days if you're concerned about preserving your score.
Once you're pre-approved, you can complete your full mortgage application online or over the phone.
You will need the following documentation to apply for a USAA mortgage:
Bank statements
Pay stubs or award letters
Also, you'll need to meet USAA's minimum credit score and down payment requirements.
About USAA Bank Mortgage
USAA was founded in 1922 by 25 Army officers who decided to insure each other's automobiles. Over time, USAA expanded membership to include Army, Navy, Marine Corp., Foreign Service, and Air Force officers, and State Department officials and their widows. In the early 1960s, USAA began allowing members to continue their membership even after their service ended.
In the 1990s, USAA opened membership to enlisted personnel, and in 2006, USAA became the first bank to let members deposit checks from home, using a scanner and an internet connection. Also in the 2000s, membership eligibility expanded to military retirees and their spouses and children. By 2009, anyone who was serving or had honorably served in the U.S. military (and their families) was eligible for USAA membership.
In addition to membership eligibility, the product line has also expanded. USAA offers insurance, banking services, loans, business services, investment accounts, and many other financial products.
USAA's mortgage rates are a little lower than the national average. You might be able to lower it even more by paying for mortgage discount points.
Yes, especially if you qualify for a VA loan, as USAA offers low rates and fees.
Yes. USAA offers both conventional mortgage and VA mortgage refinance loans at competitive rates.
You must be a USAA member. These people are eligible for membership:
Currently serving members of the military
Those who have received an honorable discharge from the military
Pre-commissioned officers
Eligible family members of the above, including spouses, divorced spouses who haven't remarried, widows, and children
Your debt-to-income ratio should ideally be under 36%. But lenders can approve a mortgage application even if it's 50%. You'll need to talk to your loan officer about your specific situation. Most VA loan borrowers don't need a down payment, but you may need cash to cover the VA funding fee and other closing costs. If you're applying for a conventional loan, you'll need to make a 3% down payment.
USAA Bank Mortgage currently offers:
VA loan
VA jumbo loan
VA IRRRL
VA cash-out refinance
Conventional loan
Conventional refinance loan
HomeReady low down payment mortgage
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Kimberly Rotter has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Axos Financial and Target. The Motley Fool has a disclosure policy.
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