Sun. Dec 15th, 2024

USAA Mortgage Review<!-- wp:html --><p class="headline-regular financial-disclaimer">Our experts answer readers' home-buying questions and write unbiased product reviews (<a href="https://www.businessinsider.com/personal-finance/how-we-evaluate-mortgage-lenders" class="not-content-link" target="_blank" rel="noopener">here's how we assess mortgages</a>). In some cases, we receive a commission from <a href="https://www.businessinsider.com/personal-finance/our-partners" class="not-content-link" target="_blank" rel="noopener">our partners</a>; however, our opinions are our own.</p> <p><strong>The bottom line: </strong>USAA Mortgage is one of Insider's picks for the <a href="https://www.businessinsider.com/personal-finance/best-va-mortgage-lenders">best VA mortgage lenders</a>. USAA has extremely strong customer satisfaction ratings, and it offers a variety of mortgage options for VA borrowers. However, as a lender that focuses mainly on its VA loans, its non-VA offerings are slim.</p> <h2>USAA Mortgage: Overall Lender Rating</h2> <p>FeatureInsider rating (out of 5)Loan types3Affordability3.5Customer satisfaction5Trustworthiness4Total3.88</p> <h2>USAA Mortgage: Pros and Cons</h2> <p>ProsCons</p> <p>Good option for VA mortgages</p> <p>Available in all 50 US states</p> <p>Extremely high customer satisfaction ratings, according to <a href="https://www.jdpower.com/business/press-releases/2022-us-mortgage-origination-satisfaction-study" target="_blank" rel="noopener">J.D. Power's 2022 US Mortgage Origination Satisfaction Survey</a></p> <p>No FHA or USDA mortgages, and no HELOCs or home equity loansDoes not accept alternative credit data, such as proof that you pay bills on timeNo customized interest rates online</p> <h2>USAA Mortgage Rates</h2> <p>USAA shows <a href="https://www.usaa.com/inet/wc/bank-real-estate-mortgage-rates" target="_blank" rel="noopener">sample mortgage rates online</a> for both new purchases and refinances. These rates take certain assumptions into account, though, such as credit score and location. There's no way to customize your rate online based on your own credit score, zip code, or down payment — you'll need to contact USAA to learn more about a personalized rate.</p> <h2>Compare USAA to Other Mortgage Lenders</h2> <h3>USAA vs. Navy Federal Mortgages</h3> <p class="copyright">USAA</p> <p class="copyright">Navy Federal Credit Union</p> <p><strong>Min. credit score</strong></p> <p>640</p> <p><strong>Min. credit score</strong></p> <p>660</p> <p><strong>Standout feature</strong></p> <p>Customer service</p> <p><strong>Standout feature</strong></p> <p>Military Choice loan</p> <p>USAA Mortgage<strong>Navy Federal Credit Union Mortgage</strong></p> <p>Navy Federal Credit Union Mortgage - Product Name Only requires a higher credit score than USAA. However, it may accept alternative credit data to boost your application if your credit score isn't as high as you'd like it to be. Navy Federal also offers a wider range of mortgage and home equity products, and is one of our <a href="https://www.businessinsider.com/personal-finance/best-heloc-lenders">best HELOC lenders</a>.</p> <p>Navy Federal's <a href="https://www.navyfederal.org/loans-cards/mortgage/mortgage-rates/military-choice-loan.html" target="_blank" rel="noopener">Military Choice mortgage</a> is a good option if you've already used all of your VA loan benefits. With it, you can get a 30-year mortgage with no down payment.</p> <p>Both lenders earned high ratings on J.D. Power's annual customer satisfaction study, but USAA earned the highest rating out of all the lenders on the list (though none of the VA lenders listed were ranked because they don't meet the study criteria).</p> <h3>USAA vs. Veterans United Mortgages</h3> <p class="copyright">USAA</p> <p class="copyright">Veterans United Home Loans</p> <p><strong>Min. credit score</strong></p> <p>640</p> <p><strong>Min. credit score</strong></p> <p>620</p> <p><strong>Standout feature</strong></p> <p>Customer service</p> <p><strong>Standout feature</strong></p> <p>Free credit counseling</p> <p>USAA Mortgage<strong>Veterans United Mortgage</strong></p> <p>Veterans United Home Loans - Product Name Only earned the top spot in our list of the best VA mortgage lenders, and it was the largest lender of VA mortgages in 2022, according to <a href="https://www.benefits.va.gov/HOMELOANS/Lender_Statistics.asp" target="_blank" rel="noopener">data from the Department of Veterans Affairs</a>.</p> <p>If you're a veteran or service member who doesn't currently qualify for a loan with this lender, Veterans United offers free credit counseling to help you get your finances to a place where you can qualify.</p> <h2>How USAA Mortgages Work</h2> <p>USAA mortgages are available in all 50 states and Washington, DC. Here are the types of mortgages you can currently get with USAA:</p> <p><a href="https://www.businessinsider.com/personal-finance/conforming-loans">Conforming mortgage</a><a href="https://www.businessinsider.com/personal-finance/va-loans">VA mortgage</a>VA jumbo mortgage<a href="https://www.businessinsider.com/personal-finance/va-irrrl">VA interest rate reduction refinance loan (IRRRL)</a>VA cash-out refinance</p> <p>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.</p> <p>USAA does not accept alternative credit data to qualify for a mortgage. You will have to show your credit score.</p> <p>Contact customer support Monday through Friday. Exact hours depend on whether you're calling about a new or existing loan.</p> <h2>Is USAA Trustworthy?</h2> <p>The Better Business Bureau gives USAA an <a href="https://www.bbb.org/us/tx/san-antonio/profile/insurance-companies/usaa-0825-23452" target="_blank" rel="noopener">NR, or "no rating"</a> because it's responding to complaints that had previously been closed. A good BBB grade indicates that a company responds effectively to customer complaints, advertises honestly, and is transparent about business practices.</p> <p>In 2022, <a href="https://www.fincen.gov/news/news-releases/fincen-announces-140-million-civil-money-penalty-against-usaa-federal-savings" target="_blank" rel="noopener">the Financial Crimes Enforcement Network fined USAA $140 million</a> for "willfully fail[ing]" to bring its anti-money laundering program up to federal standards.</p> <p>In J.D. Power's 2022 mortgage origination customer satisfaction study, USAA earned the highest rating of all the lenders included in the study, in spite of not being eligible to rank. If it was eligible to be included in J.D. Power's rankings, it would have earned the No. 1 spot.</p> <h2>USAA Mortgage FAQ</h2> <h3 class="faq-question">What credit score do you need to get a mortgage with USAA?</h3> <p class="faq-answer">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.</p> <h3 class="faq-question">Is USAA a good VA lender?</h3> <p class="faq-answer">Yes, USAA is a strong VA lender overall. It's on Insider's guide to the best VA mortgage lenders. It also has a high customer satisfaction score from J.D. Power.</p> <h3 class="faq-question">Why is USAA selling my mortgage?</h3> <p class="faq-answer">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. If you're interested in staying with the same lender for the life of the loan, you can ask your loan officer when you first apply if the lender typically services its own mortgages.</p> <div class="read-original">Read the original article on <a href="https://www.businessinsider.com/personal-finance/usaa-mortgage-review">Business Insider</a></div><!-- /wp:html -->

Our experts answer readers’ home-buying questions and write unbiased product reviews (here’s how we assess mortgages). In some cases, we receive a commission from our partners; however, our opinions are our own.

The bottom line: USAA Mortgage is one of Insider’s picks for the best VA mortgage lenders. USAA has extremely strong customer satisfaction ratings, and it offers a variety of mortgage options for VA borrowers. However, as a lender that focuses mainly on its VA loans, its non-VA offerings are slim.

USAA Mortgage: Overall Lender Rating

FeatureInsider rating (out of 5)Loan types3Affordability3.5Customer satisfaction5Trustworthiness4Total3.88

USAA Mortgage: Pros and Cons

ProsCons

Good option for VA mortgages

Available in all 50 US states

Extremely high customer satisfaction ratings, according to J.D. Power’s 2022 US Mortgage Origination Satisfaction Survey

No FHA or USDA mortgages, and no HELOCs or home equity loansDoes not accept alternative credit data, such as proof that you pay bills on timeNo customized interest rates online

USAA Mortgage Rates

USAA shows sample mortgage rates online for both new purchases and refinances. These rates take certain assumptions into account, though, such as credit score and location. There’s no way to customize your rate online based on your own credit score, zip code, or down payment — you’ll need to contact USAA to learn more about a personalized rate.

Compare USAA to Other Mortgage Lenders

USAA vs. Navy Federal Mortgages

Min. credit score

640

Min. credit score

660

Standout feature

Customer service

Standout feature

Military Choice loan

USAA MortgageNavy Federal Credit Union Mortgage

Navy Federal Credit Union Mortgage – Product Name Only requires a higher credit score than USAA. However, it may accept alternative credit data to boost your application if your credit score isn’t as high as you’d like it to be. Navy Federal also offers a wider range of mortgage and home equity products, and is one of our best HELOC lenders.

Navy Federal’s Military Choice mortgage is a good option if you’ve already used all of your VA loan benefits. With it, you can get a 30-year mortgage with no down payment.

Both lenders earned high ratings on J.D. Power’s annual customer satisfaction study, but USAA earned the highest rating out of all the lenders on the list (though none of the VA lenders listed were ranked because they don’t meet the study criteria).

USAA vs. Veterans United Mortgages

Min. credit score

640

Min. credit score

620

Standout feature

Customer service

Standout feature

Free credit counseling

USAA MortgageVeterans United Mortgage

Veterans United Home Loans – Product Name Only earned the top spot in our list of the best VA mortgage lenders, and it was the largest lender of VA mortgages in 2022, according to data from the Department of Veterans Affairs.

If you’re a veteran or service member who doesn’t currently qualify for a loan with this lender, Veterans United offers free credit counseling to help you get your finances to a place where you can qualify.

How USAA Mortgages Work

USAA mortgages are available in all 50 states and Washington, DC. Here are the types of mortgages you can currently get with USAA:

Conforming mortgageVA mortgageVA jumbo mortgageVA 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 does not accept alternative credit data to qualify for a mortgage. You will have to show your credit score.

Contact customer support Monday through Friday. Exact hours depend on whether you’re calling about a new or existing loan.

Is USAA Trustworthy?

The Better Business Bureau gives USAA an NR, or “no rating” because it’s responding to complaints that had previously been closed. 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.

In J.D. Power’s 2022 mortgage origination customer satisfaction study, USAA earned the highest rating of all the lenders included in the study, in spite of not being eligible to rank. If it was eligible to be included in J.D. Power’s rankings, it would have earned the No. 1 spot.

USAA Mortgage FAQ

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.

Is USAA a good VA lender?

Yes, USAA is a strong VA lender overall. It’s on Insider’s guide to the best VA mortgage lenders. It also has a high customer satisfaction score from J.D. Power.

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. If you’re interested in staying with the same lender for the life of the loan, you can ask your loan officer when you first apply if the lender typically services its own mortgages.

Read the original article on Business Insider

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