USAA began operations in the 1920s, when 25 Army officers in San Antonio, Texas, created a small cooperative to insure each other’s vehicles. USAA operates offices across the country and internationally to serve customers on duty overseas.
The company also offers traditional mortgage options as well as those only available to service members and veterans.
Table of Contents
USAA Mortgage Rate Facts
- Provides support and assistance specifically designed for active-duty and retired service members, as well as eligible family members
- Extends a host of financial education resources and support through the USAA Home Learning Center
- Has a variety of loan products, from VA loans to first-time homebuyer loans, jumbo loans, conventional loans, and ARM loans
- Offers zero percent down payment VA loans and down payments as low as 5 percent with other loan options
- Provides online preapproval as well as real estate agent referral with cash rewards ranging from $350 to $24,000 for qualifying customers
Overall
USAA has operated for close to 100 years, with a consistent mission of offering a variety of financial services to a specific group: active-duty and retired servicemembers, and qualifying family members.
USAA provides home loans across the U.S., originated 63,000 home loans in the first three months of 2018, and ranks No. 20 in Fortune’s list of the World’s Most Admired Companies for 2018.
USAA has more than 12 million members and clearly defines its share of the overall home loan market. Because a strong majority of its members qualify for VA loans and other programs designed to benefit active-duty military and veterans, the bank can use its experience and expertise to provide highly relevant, targeted services.
Current Mortgage Rates
USAA Loan Specifics
Understanding the mortgage options offered by a lender is crucial to making an informed decision. While mortgage rates play a major role in that process, the loan type is another crucial aspect to consider.
USAA Adjustable Rate Loans
As the name suggests, Adjustable-Rate Mortgages (ARMs) feature a lower initial rate that can increase or decrease with market fluctuations throughout the life of the loan.
USAA offers a five-year guarantee on the initial rate, meaning that borrowers who plan to move or refinance before the five-year period expires will likely benefit the most from this type of loan. ARM Loans have the lowest initial interest rate of any mortgage offered by USAA.
USAA Conventional Loans
This type of mortgage provides predictability by maintaining the same interest rate for the entire loan term. Borrowers can count on the constancy of that rate when making financial decisions, whether related to the loan or general budgeting.
Fixed-rate loans are especially useful for those who plan to remain in their home for a long time. They are also attractive when interest rates are low, as they provide greater value over time.
USAA Jumbo Loans
These debt instruments are specifically designed for USAA members who need a loan of over $453,100, the Jumbo Loan lower limit that was recently increased by the Federal Housing Finance Agency.
USAA Jumbo Loans are available for up to $3 million, making them a good choice for those interested in owning a high-value home. Nevertheless, those looking into jumbo loans need to have a significant amount of cash on hand, as these types of loans typically come with a 20-percent down payment requirement.
USAA First-Time Homebuyer Loans
Created with first-time home buyers in mind, these loans are similar to those insured by the Federal Housing Administration, but are not endorsed or secured by that agency. USAA offers attractive terms and conditions for first-time homebuyers, such as down payments as low as 3 percent. Through USAA, borrowers qualify for first-time home buyer loans as long as they haven’t owned a home in the last three years.
USAA VA Loans
With membership limited to active-duty and retired service members and their immediate family, it’s not surprising that VA Loans are a common USAA offering. Current service members, those retired from the armed forces, and certain surviving spouses all qualify for this type of loan.
With no down payments or private mortgage insurance required, and generally lower interest rates than conventional loans with the same terms, VA loans are especially attractive to those who qualify.
USAA Mortgage Loan Options Overview
| Loan Type | Description |
|---|---|
| USAA Adjustable Rate Loans (ARMs) | • Lower Initial Rate With Market-Based Fluctuations • 5-Year Rate Guarantee for Short-Term Borrowers • Lowest Initial Interest Rate Among USAA Mortgages |
| USAA Conventional Loans | • Fixed Interest Rate for the Entire Loan Term • Predictable Monthly Payments for Long-Term Homeowners • Ideal in Low-Interest Rate Environments |
| USAA Jumbo Loans | • Designed for High-Value Home Purchases (Above $453,100) • Available for Amounts up to $3 Million • Requires a 20% Down Payment |
| USAA First-Time Homebuyer Loans | • Designed for First-Time Homebuyers • Low Down Payment Options (As Low as 3%) • Eligibility if You Haven’t Owned a Home in the Last Three Years |
| USAA VA Loans | • Exclusive to Active-Duty, Retired Service Members, and Eligible Family Members • No Down Payment or Private Mortgage Insurance Required • Generally Offers Lower Interest Rates Than Conventional Loans for Qualifying Borrowers |
USAA Mortgage Customer Experience
According to J.D. Power’s 2023 Primary Mortgage Originator Satisfaction Study, USAA earned an overall rating of 864 out of 1,000 points, ranking first among large mortgage originators.
USAA emphasizes its commitment to its members, and the restrictions on joining help it create a strong sense of community for those who qualify. The lender offers an online home loan preapproval process and a customer service number, 800-531-0341, that leads directly to its department of loan specialists.
By combining these offerings with short, FAQ-style answers to common mortgage questions and longer articles on mortgage loan specifics all on one main page, USAA makes it simple for members to determine which loan product best meets their needs.
Although based on assumptions and estimates, this tool can help members understand what they can afford early on. That, in turn, allows them to focus on the types of loans best suited to their needs.
While quotes aren’t available through without going through the preapproval process, completing that step makes it that much easier to explore available options and choose the one that offers the best terms and conditions for individual needs.
With preapproval in hand and loan specialists readily available to answer questions, choosing a loan product with USAA is a hassle-free experience.
USAA enjoys an overall positive reputation for customer service. Unlike a a few other mortgage lenders, it does not appear on the Consumer Financial Protection Bureau’s ranking of Most-Complained-About Companies for Mortgages.
The organization has earned praise from customer service experience software provider Satmetrix in its Net Promoter Benchmark Study as earning the highest score for eight consecutive years, 2000-2017.
However, USAA has also received its fair share of legitimate complaints from members. One drawback noted on its message board forum is the lack of physical USAA offices, requiring borrowers to make contact via phone and email.
Those who have had negative experiences cited issues with interdepartmental communications, extended timelines, and other concerns that caused problems with third parties involved in the home purchase process.
To be fair, some commenters asked for, received, and reported the satisfactory resolution of their issues once they got in contact with the company’s customer service staff.
USAA Lender Reputation
USAA is a diversified financial services group that was founded in 1922. Its Nationwide Mortgage Licensing System ID number is 401058. The banking portion of the company has a Trustpilot ranking of 2.4/10 stars and USAA life insurance is highly rated among the various rating agencies. Its BBB rating is “A” and the lender has closed 927 BBB complaints in the last three years.
- Data collected Nov. 5, 2018
USAA Mortgage Qualifications
| Credit score | Category | Likelihood of Approval |
|---|---|---|
| 760 or higher | Excellent | Very likely |
| 700-759 | Good | Likely |
| 621-699 | Fair | Somewhat likely |
| 0-620 | Poor | Somewhat unlikely |
| None | N/A | Unlikely |
A borrower’s credit score has a significant impact on the rates and terms they are offered. A score above 760 puts borrowers in the highest category and frequently leads to the provision of favorable rates and terms across the industry.
A good score of 700-759 isn’t as strong, but it’s still more of an asset than a hindrance in terms of loan specifics. With “fair” credit, “poor” credit and situations where they have little or no credit history, borrowers should anticipate receiving offers with less-favorable terms and conditions.
| Loan Type | Down Payment |
|---|---|
| Conventional Loan | 5 Percent |
| VA Loan | Zero Percent |
| First-Time Homebuyer Loan | Zero Percent |
| Jumbo Loan | Variable, but Often 20 Percent |
Down-payment requirements vary depending on the loan type offered by USAA. Members benefit from more than one type of zero-down loan but also have the option of offering a larger down payment to secure more favorable loan terms.
This flexibility and array of options allows USAA members to choose the loan product that makes the most sense for them in the long term.
USAA Phone Number and Additional Details
Homepage URL: https://www.usaa.com/
Company phone: 210-531-8722
Headquarters address: 9800 Fredericksburg Road, San Antonio, TX, 78288
The Bottom Line – USAA Mortgage Rates Review
USAA Mortgage has a rich history dating back to the 1920s, founded by Army officers to serve their fellow servicemen. With a strong commitment to active-duty and retired service members, USAA offers a diverse range of mortgage options, including VA loans, conventional loans, jumbo loans, and first-time homebuyer loans. Their dedication to customer satisfaction is evident through their high ratings in customer service surveys. However, the absence of physical offices may be a drawback for some, and occasional communication issues have been reported. Overall, USAA Mortgage stands as a reputable lender, serving its unique membership base with tailored financial solutions and a strong emphasis on customer support.
How We Review Mortgage Lenders
Good Financial Cents evaluates U.S. mortgage lenders with a focus on loan offerings, customer service, and overall trustworthiness. We strive to provide a balanced and detailed perspective for potential borrowers. We prioritize editorial transparency in all our reviews.
By obtaining data directly from lenders and carefully reviewing loan terms and conditions, we ensure a comprehensive assessment. Our research, combined with real-world feedback, shapes our evaluation process. Lenders are then rated on various factors, culminating in a star rating from one to five.
For a deeper understanding of the criteria we use to rate mortgage lenders and our evaluation approach, please refer to our editorial guidelines and full disclaimer.
USAA Mortgage Rates Review
Product Name: USAA Mortgage Rates
Product Description: USAA Mortgage Rates are offered by USAA, a financial institution with a long history of serving military personnel and their families. They provide a range of mortgage options, including VA loans, conventional loans, and jumbo loans, tailored to the specific needs of their target audience.
Summary of USAA Mortgage Rates
USAA Mortgage Rates cater primarily to active-duty and retired service members, as well as their eligible family members. With nearly a century of experience, USAA offers a diverse selection of mortgage products, making it suitable for a wide range of borrowers. Prospective homebuyers can benefit from zero-down VA loans, low down payment options for first-time buyers, and competitive conventional and jumbo loans. USAA’s commitment to customer service is evident in their high customer satisfaction ratings, including their first-place ranking in J.D. Power’s 2023 Primary Mortgage Originator Satisfaction Study.
-
Cost and Fees
-
Customer Service
-
User Experience
-
Product Offerings
Overall
Pros
- Tailored Military-Focused Mortgages
- Diverse Range of Loan Options
- High Customer Satisfaction
Cons
- Limited Physical Presence
- Occasional Communication Challenges
- Membership Eligibility Requirement
