USAA Mortgage Review 2024

How Bankrate scored USAA

• Affordability: USAA showcases its latest mortgage rates online, so you can easily make comparisons between this lender and others. (Note: The rates displayed on the USAA website might not apply to your situation if your credit or finances don’t fit certain criteria.)
• Availability: USAA caters to service members and veterans across the U.S.
• Borrower experience: USAA is known for exceptional service, and its online capabilities lend convenience to the transaction.

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 a conventional product, 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, but it received the highest marks for customer satisfaction from J.D. Power in 2021 and 2022. 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.

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.)

Refinancing with USAA

USAA offers both rate-and-term and cash-out refinancing options. This includes the VA Interest Rate Reduction Refinance Loan (IRRRLs), which comes 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.

• 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.

  How we suggest lenders to compare

  To help you make the most informed decisions, our editorial team suggests two (2) alternative mortgage lenders for each lender reviewed in our comparison table. In most cases, these alternatives 1.) share the same strength (affordability, availability or borrower experience) as the lender reviewed; and 2.) rate highly for Bankrate Score. In the event more than two lenders meet these standards, we suggest the ones with the lowest APRs.