USAA Mortgage Review 2023 | US News

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USAA’s mortgage division specializes in VA home loans and refinancing.

  • VA loans.
  • VA jumbo loans.
  • Mortgage refinancing.

USAA’s refinancing options include VA IRRRL as well as conventional refinancing. The conventional option is only available to members who are refinancing a USAA mortgage serviced by Nationstar Mortgage, a subservicer for USAA.

  • FHA loans.
  • USDA loans.
  • Home equity loans.

USAA members can get preapproved within minutes on USAA’s website and receive a preapproval letter to help them negotiate with sellers. This preapproval letter can be used for up to 90 days. Prospective homebuyers applying for a VA loan also need a certificate of eligibility confirming they qualify for a VA loan. You can apply for the certificate of eligibility through VA.gov.

After finding a potential home, members can work with a USAA loan officer to complete the mortgage application. During the application process, the buyer should provide current bank statements, income statements such as pay stubs and other supporting documents as needed.

USAA then reviews the application to make sure additional information isn’t needed, the title is clear and supporting documents match the application. When you’re approved and you’re ready to close on the house, you’ll need to bring your ID, as well as a cashier’s check or wire transfer to cover any down payment and closing costs that may apply.

There’s no origination fee for VA loans, VA IRRRL and VA jumbo loans through USAA. The lender also covers appraisal, title and funding fees for VA IRRRLs.

VA loans don’t require private mortgage insurance, and they usually don’t require a down payment – though a down payment may be required in certain circumstances. Homebuyers who get a VA loan, however, may need to pay a nonrefundable VA funding fee. This one-time fee is collected at closing and is determined by the loan amount, the borrower’s service history and other factors.

Conventional refinance rate and term loans are available to USAA members who have their USAA mortgage serviced by Nationstar Mortgage, and these charge an origination fee. The origination fee is a flat $1,295 for amounts of $129,500 or more, or 1% for amounts of less than $129,500.

USAA offers 10-, 15-, 20- and 30-year fixed rates.

USAA doesn’t offer any discounts on mortgage products. But members can save up to 10% on insurance when bundling auto and homeowners insurance through USAA.

USAA requires military affiliation to become a member and apply for mortgage products. You must be an active military member, former military with an honorable discharge or an eligible family member.

Loans are available from $50,000 to $3 million. USAA does not disclose a maximum debt-to-income ratio.

The minimum credit score for a VA loan through USAA is 640.

USAA offers its mortgage products on properties in all 50 states and Washington, D.C.

USAA has an A+ Better Business Bureau rating, but it is not BBB accredited.

In 2021, the Consumer Financial Protection Bureau received 32 mortgage-related complaints for USAA, with a timely response for all. The company closed 27 complaints with an explanation, two with monetary relief and three with nonmonetary relief.

USAA has a 4.0 out of 5 stars overall mortgage rating from U.S. News, 4.5 for affordability, 3.0 for eligibility and 3.8 for customer service. The median overall rating for mortgage lenders in U.S. News ratings is 4.2.

Members can reach USAA’s customer service department by phone Monday through Friday. For questions about new loans, members can call 800-531-0341 from 7 a.m. to 6:30 p.m. Central time, Monday through Friday. For questions about loans in process, members can call 800-531-8781 from 8 a.m. to 5 p.m. Central time, Monday through Friday.

Members can send a message to USAA anytime through its website or chat with an automated assistant through the USAA mobile app.

USAA offers online preapproval, document submission and account management. However, full applications must be completed over the phone.

  • People who can qualify for USAA membership.
  • People who want a VA loan with waived fees.
  • People who value good customer service.

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