USAA Bank Mortgages Reviews

USAA Bank Mortgage publishes rates daily on its website for VA purchase loans, VA jumbo loans, conventional purchase loans, low-down-payment loans, VA interest rate reduction refinance loans (IRRRL), VA cash-out refinance loans and conventional refinance loans.

You can get a personalized rate estimate by calling USAA. If you’re interested, you can also ask about USAA’s adjustable-rate mortgage (ARM) products. An ARM usually has a low introductory rate (lower than on a fixed-rate mortgage), but the rate changes regularly after a set time. ARMs are more popular when interest rates are higher, but borrowers risk their rates moving upward if they don’t sell or refinance before the introductory rate ends.

USAA Bank Mortgage’s average home purchase rate in 2021 was 0.18% lower than the national average home purchase rate that year, according to federal data. The rate you receive from USAA depends on your credit history, the loan amount, your down payment and other personal financial factors, as well as the current climate for interest rates.

USAA Bank Mortgage average home purchase rate vs. national average

To get a mortgage with USAA Bank, you first have to be a USAA member. There is no charge for membership, but you must be eligible; it’s generally open to military members and veterans and their spouses and children.

Once you’re a USAA member, the first step if you are seeking a purchase loan is to get preapproved. USAA asks questions about your finances and checks your credit. If you are preapproved, you get a preapproval letter you can use for up to 90 days.

If you decide to move forward, you work directly with a loan officer who helps you figure out what documentation you need (including your Certificate of Eligibility for a VA loan) and how to complete the application online. Mortgage support from USAA is available by phone Monday through Friday.

USAA Bank Mortgage application features

USAA Bank Mortgage offers the following types of loans:

• VA purchase loan
• VA jumbo purchase loan
• Conventional purchase loan
• Low down payment purchase loan
• VA IRRRL
• VA jumbo IRRRL
• VA cash-out refinance loan
• VA jumbo cash-out refinance loan
• Conventional refinance loan
• Conventional cash-out refinance loan

In 2021, borrowers initiated 23,040 home purchase applications with USAA Bank Mortgage. Of those applications, 14,225 turned into closed home purchase loans. USAA denied 13.1% of applications.

Loan applications for home purchases only by year

Refinancing

USAA offers a number of refinancing products for members who want to lower their interest rate, pay off their loan faster or take cash out. With an IRRRL, for instance, you can refinance up to 100% of the value of your home and roll the VA funding fee into the loan. USAA also offers conventional refinance loans.

In 2021, slightly over half of USAA mortgage loans were refinance loans; nearly all of these loans were rate-and-term refinances. This was a significant change from 2019, when over two-thirds of USAA mortgage loans were purchase loans.

Refinancing became popular in 2020 and 2021 as rates fell to new lows. As rates go back up, fewer homeowners are expected to seek refinance loans.

Home purchase vs. refinance loans by year

To qualify for a VA loan with USAA Bank, you must have a Certificate of Eligibility (COE) from the Department of Veterans Affairs. You can obtain a COE online through the federal eBenefits website, or you can ask USAA for help obtaining it.

USAA Bank has its own set of loan requirements that you’ll also need to meet once you get your COE. Your loan officer will look at your credit score, credit history, assets, employment history and income to determine what loans you qualify for, how much you can borrow and the loan costs.

VA home loans don’t require down payments in most circumstances, and there is no mortgage insurance. They do require a one-time VA funding fee, which ranges from 1.4% of the loan amount to 3.6% of the loan amount.

For information about conventional loan requirements and refinance loan requirements, we recommend speaking with a USAA loan officer.

National mortgage requirements by type

For other loan types, read our guides on jumbo loans, FHA loans and USDA loans.

Costs and fees on USAA Bank Mortgage vary based on the type of loan you get and your profile as a borrower.

As a general rule, VA loans do not require a down payment and have no mortgage insurance fees. Closing costs on a VA home loan include the VA funding fee, which is between 1.4% and 3.6% of the loan amount, depending on whether it’s your first time using a VA-backed loan and your down payment amount. On an IRRRL, the funding fee is 0.5%. On a VA cash-out refinance loan, it’s either 2.3% or 3.6%, based on whether it’s your first use.

According to USAA, closing costs on a VA loan range from 1% to 5% of the loan amount, covering things such as an appraisal, the title search and title insurance and discount points.

Within three days of USAA Bank Mortgage receiving your application, it sends you a Loan Estimate, which gives you an idea of all your loan costs and fees. Later in the process — at least three days before the closing date — it sends a Closing Disclosure, a form with exact costs and fees.