finder.com’s rating: 3.5 / 5.0
Custom loans for current and former military members and their families.
USAA proudly serves military members and their families with a diverse arsenal of mortgage options — each backed by strong security, borrower autonomy, and helpful customer service.
|Description||A top-rated bank offering home loans for current and former military members and their families.|
|Loan types||Purchase, Refinance, Jumbo, Fixed, Adjustable, FHA, VA, USDA|
|Minimum down payment||0%|
On Trustpilot, USAA gets 4.2 out of 10 stars, with a fifty-fifty split between customers who praise its excellent customer service and low fees with those who complain of fraudulent account activity and higher APRs than promised.
For unfiltered feedback, check out USAA’s Member Community online. USAA responds to most inquiries on the forum, even forwarding negative reviews to more senior departments to sort out any issues.
Do I qualify for a loan with USAA?
The number one requirement to qualify for a loan with USAA is membership in the organization. In order join USAA, you must be:
- Currently serving in the U.S. Air Force, Army, Coast Guard, Marines, Navy, National Guard or Reserves.
- Former military who have retired or separated from the U.S. military with a discharge type of Honorable.
- Family — including widows, widowers and un-remarried former spouses of USAA members who had USAA auto or property insurance while married and individuals whose parents have or had USAA auto or property insurance.
- Cadets or midshipmen at U.S. service academies, in advanced ROTC or on ROTC scholarship, plus officer candidates within 24 months of commissioning.
Financial factors that USAA considers when determining if you qualify for a loan include debt-to-income ratio, income and a minimum credit score of 620.
What can I expect with a USAA home loan?
USAA takes pride in a streamlined mortgage process and fast turnaround at each step. Like most larger lenders, its rates are competitive, though not necessarily groundbreaking.
However, your mortgage rate isn’t always the most important factor. Flexibility, fees and communication can greatly affect the outcome of the homebuying process.
Here’s what to expect with a home loan through USAA:
- Loans for homebuyers with credit scores of 620 or higher.
- Down payments as low as 3% for standard loans and as low as 0% for veterans.
- Loans from $50,000 up to $3 million through jumbo options.
- Variable fixed-rate loans with terms of 10, 15, 20 and 30 years.
- Up to 80% loan-to-value ratios.
- Direct payments toward escrow and principal.
Pros and cons
- Solid customer service. USAA gets strong reviews from its customers.
- VA loans. USAA specializes in VA loans and will guide you through the process.
- Simplified mortgage process. A streamlined process makes home buying less stressful.
- Members only. Loans with USAA are only available to former and current members of the military and their families.
How do I apply?
USAA breaks down its straightforward online application into steps, including how long it expects each step might take.
While USAA doesn’t advertise all of its eligibility requirements to receive a home loan online, you’ll need to:
- Take out a minimum loan of $50,000
- Have a minimum credit score of 620
- Be a current or former member of the military or a family member
VA loans eligibility
Active-duty military members can apply for a home loan guaranteed by the US government. These VA loans are designed to help you borrow, build or repair a home.
To be eligible for a VA loan, you must have served a minimum of 90 days during wartime, 181 days in peacetime or six years in the National Guard or Reserves. These loans are also open to surviving spouses.
- Bank statements
- Tax returns
- Income statements, such as pay stubs or award letters.
- Other supporting documents as needed. USAA will walk you through it.
I got the loan. Now what?
To stay on top of payments and make the most of your mortgage:
- Consider autopay. Automatic withdrawals can eliminate the headache of monthly payments.
- Call customer support. If you find yourself in financial trouble, speak with an agent at 800-531-8722. USAA may be willing to work with you while you get back on track.
USAA could be an affordable option for veterans and current military looking for a straightforward mortgage backed by solid customer service. Average rates are balanced by strong security measures and flexibility during the mortgage process. If you’re a current or former servicemember, take a look at what this mortgage provider has to offer.
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