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USAA is a popular VA mortgage lender that offers a variety of different types of VA loans. It also has conforming loans that allow down payments of just 3%. But otherwise, its offerings are fairly limited. You'll need to become a USAA member to get a mortgage from this lender.
USAA Mortgage
On Bankrate's website
Insider’s Rating
3.4/5
Recommended Credit
640
Types of Loans Offered
Conforming, VA, VA jumbo, VA refinance
Pros
- No origination fee for VA loans
- Offers low-down-payment conventional loans
Cons
- Limited mortgage options
- Does not accept non-traditional forms of credit in lieu of a credit score
Insider’s Take
USAA is one of the best VA mortgage lenders available. USAA offers a variety of different types of VA loans, and it also has conforming loans that allow down payments of just 3%. But otherwise, it's offerings are fairly limited. You'll also need to become a USAA member to get a mortgage from this lender.
Product Details
- Offers mortgages in all 50 US states and Washington, DC
- Minimum credit score displayed is for VA mortgages
Understanding USAA Mortgages
Membership Required
USAA mortgages are only available to USAA members. To become a USAA member, you'll need to be a U.S. military member or veteran, a pre-commissioned officer, or a spouse or child of a current USAA member.
USAA mortgages are available in all 50 states and Washington, D.C.
Loan Options
Here are the types of mortgages you can currently get with USAA:
- Conforming loan
- VA loan
- VA jumbo loan
- VA interest rate reduction refinance loan (IRRRL)
- VA cash-out refinance
To get a VA mortgage with this lender, you'll need a credit score of at least 640. If you're looking for a conforming mortgage, USAA has options that allow down payments as low as 3%. You'll need at least a 620 credit score to qualify for a conforming mortgage with this lender.
USAA Mortgage Interest Rates and Fees
Based on our review of Home Mortgage Disclosure Act data, USAA's average mortgage rates on its conventional mortgages were on the high end compared to other lenders.
USAA shows sample mortgage rates online for both new purchases and refinances. There's no way to customize your rate online based on your own credit score, ZIP code, or down payment. You'll need to start an application or talk to a loan officer to get a personalized quote.
In 2022, the average borrower getting a VA mortgage from this lender paid $2,095 in origination charges, according to HMDA data (many of these fees included discount points, which are an optional cost borrowers can pay to lower their mortgage rate). Conventional borrowers paid $3,394. This is around average compared to other lenders.
USAA Mortgage Overall Rating
Loan Types: 3 out of 5
USAA doesn't offer a huge range of mortgages to choose from; you'll be limited to a conforming or VA loan.
Affordability: 3 out of 5
If you're getting a VA loan, you may find this lender to be relatively affordable since it charges no origination fees on these loans. But this lender's average rates are on the high end, and you'll need a decent credit score to qualify.
Customer Satisfaction: 3.6 out of 5
On USAA's WalletHub profile, the bank has 3.6 out of 5 stars from almost 8,000 customer reviews.
Trustworthiness: 4 out of 5
The Better Business Bureau gives USAA an A+ rating. A good BBB grade indicates that a company responds effectively to customer complaints, advertises honestly, and is transparent about business practices.
In 2022, the Financial Crimes Enforcement Network fined USAA $140 million for "willfully fail[ing]" to bring its anti-money laundering program up to federal standards.
USAA Mortgage Pros and Cons
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No Origination Fee on VA Loans
USAA doesn't charge an origination fee on its VA loans, which can help you save money at closing. However, keep in mind that you will need to pay the VA funding fee, which typically ranges from 1.25% to 3.3% of your loan amount. This fee can be rolled into your mortgage.
As we noted above, many VA borrowers getting a loan from USAA in 2022 still paid origination charges because they chose to purchase discount points. This is an optional charge, but make sure to ask if any rate quotes you're given include points, since this will impact your closing costs.
Extremely Limited Mortgage Options
If you aren't getting a conforming or VA loan, you'll need to shop elsewhere. It also doesn't have any home equity loan or HELOC options.
What Borrowers Are Saying About USAA Mortgages
Business Insider looked at positive and negative customer reviews, online forums, BBB complaints, and other sources to understand what borrowers think about USAA's mortgage offerings.
Some Borrowers Have Had Issues in the Past
Previous borrowers have sometimes had poor experiences with this lender, complaining of errors and poor communication. However, there aren't a lot of recent customer reviews of USAA's mortgage services, so it's difficult to gauge how widespread these issues currently are.
How USAA Mortgages Compare
USAA vs. Navy Federal Credit Union
Navy Federal Credit Union is a great choice for borrowers affiliated with the military, particularly if you're looking to get a mortgage with no down payment. In addition to VA loans, Navy Federal has a Military Choice Loan and a Homebuyers Choice Loan that both allow zero down.
Navy Federal also offers a wider range of mortgage and home equity products, and is one of our best HELOC lenders.
Navy Federal Credit Union Mortgage Review
USAA vs. Veterans United Mortgages
Veterans United earned the top spot in our list of the best VA mortgage lenders, and it was the largest lender of VA mortgages in 2023, according to data from the Department of Veterans Affairs. USAA was the seventh largest VA lender.
Veterans United ranks extremely high in customer satisfaction, and if you don't currently qualify for a mortgage with this lender, it offers free credit counseling to help you get your finances to a place where you can qualify.
Veterans United Review
USAA Mortgage FAQs
Is USAA a legit mortgage lender?
USAA is a legitimate mortgage lender and financial services company that's been around since 1922.
What credit score do you need to get a mortgage with USAA?
You need a minimum 640 credit score to get a VA mortgage with USAA. To get a conventional loan with this lender, you'll need a score of at least 620.
Why is USAA selling my mortgage?
Sometimes, lenders will sell the servicing rights to the mortgages they originate. This means that after closing, you may end up making your monthly mortgage payments to a different lender than the one you originally got your loan with. This is a common practice, and borrowers should generally expect their mortgages to be sold after closing.
How do USAA's mortgage rates compare to others?
We found USAA's mortgage rates to be pretty high compared to other lenders, according to HMDA data.
How do I become a USAA member?
To become a USAA member, you'll need to be a U.S. military member or veteran, a pre-commissioned officer, or a spouse or child of a current USAA member.
Does USAA offer any special programs for military borrowers?
USAA's mortgage offerings are very basic, and it doesn't offer any special programs for military borrowers.
Why You Should Trust Us: How We Reviewed USAA Mortgages
To review USAA's mortgage offerings, we used our methodology for reviewing mortgage lenders.
We look at four factors — loan types, affordability, customer satisfaction, and trustworthiness — and give each a rating between 1 and 5, then average these individual ratings for the overall lender rating. Lenders get higher ratings if they offer a high number of loan types with affordable features, have positive customer reviews, and don't have any recent public controversies.
Mortgage Reporter
Molly Grace is a mortgage reporter for Business Insider with over six years of experience writing about mortgages and homeownership.ExperienceIn addition to her daily mortgage rate coverage, Molly also writes mortgage lender reviews and educational articles on homebuying and analyzes data and economic trends to give readers actionable and up-to-date information about the housing market.She also tracks affordable mortgage and down payment assistance programs offered throughout the country to keep her readers informed of homebuyer programs available to them.Before Business Insider, Molly was a blog writer for Rocket Companies and helped to create Rocket Mortgage’s Shorty Award-winning podcast Home. Made.Molly is passionate about covering personal finance topics with empathy. Her goal is to make homebuying knowledge more accessible, especially for groups that may think homeownership is out of reach.ExpertiseMolly is an expert in the following topics:
- Mortgages and mortgage lenders
- Home equity
- The housing market
- The economy and the forces that impact mortgage rates
- Budgeting and saving
- Credit
- Insurance
- Retirement savings
EducationMolly earned a bachelor's degree in journalism from Indiana University.She is based in Michigan and has a dog and two cats.
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