USAA Mortgage Review 2023
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Our Take
4.0
The bottom line:
USAA specializes in VA loans and offers relatively low mortgage interest rates, but its website doesn't provide customized rate quotes.
Full Review
Pros & Cons
Pros
- VA loans are the bulk of USAA's business, so it knows the ins and outs of eligibility.
- Offers a conventional home loan with low down payment for first-time buyers.
- Mortgage interest rates are on the low side compared with other lenders, according to the latest federal data.
Cons
- Doesn't offer FHA or USDA loans, or second mortgages.
- Limited mortgage rate information is on the USAA website. For customized rates, you'll have to make contact.
Compare to Other Lenders
Min. credit score620 | Min. credit score580 | Min. credit score620 | Min. credit score620 | Min. credit score620 |
Min. down payment3% | Min. down payment5% | Min. down payment3% | Min. down payment3% | Min. down payment3% |
Loan types and productsPurchase, Refinance, Jumbo, Fixed, Adjustable, FHA, VA | Loan types and productsPurchase, Refinance, Home Equity, Reverse, Jumbo, Fixed, Adjustable, FHA, VA, USDA | Loan types and productsPurchase, Refinance, Fixed, Adjustable, FHA, VA, USDA | Loan types and productsPurchase, Refinance, Jumbo, Fixed, Adjustable, FHA, VA, Home Equity | Loan types and productsPurchase, Refinance, Jumbo, Fixed, Adjustable, FHA, VA, Home Equity |
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Full Review
What borrowers say about USAA mortgage
NerdWallet’s lender star ratings assess objective qualities, including rates, fees and loan offerings. To assess borrowers’ subjective experiences with lenders, NerdWallet has gathered customer satisfaction ratings from J.D. Power and Zillow.
USAA receives a 797 out of 1,000 in J.D. Power’s 2022 U.S. Mortgage Origination Satisfaction Study. The industry average for origination is 716. (Mortgage origination covers the initial application through closing day.)
USAA receives 760 out of 1,000 in J.D. Power’s 2022 U.S. Mortgage Servicer Satisfaction Study. The industry average for servicing is 607. (A mortgage servicer handles loan payments.)
USAA receives a customer rating of 3.57 out of 5 on Zillow, as of the date of publication. The score reflects more than 75 customer reviews.
USAA mortgage variety of loan types
3 of 5 stars
Given USAA's military membership, VA loans with 0% down are its core offering for first-time home buyers and current and honorably discharged military members, their spouses and children.
The lender offers a conventional home loan with a low down payment designed to help first-time buyers. A government-backed jumbo loan is available as well.
And for borrowers looking to refinance, USAA offers a VA-backed loan, often called IRRRL, to help lower mortgage interest rates or reduce the term.
USAA doesn't offer FHA or USDA loans.
Home equity loans and lines of credit are also unavailable at USAA.
» MORE: Best VA mortgage lenders
USAA mortgage ease of application
5 of 5 stars
Because USAA's membership has traditionally relied on a long-distance relationship rather than a brick-and-mortar local presence, technology is key.
Borrowers can apply for home loans, submit documents and track the progress of their mortgages online. USAA serves all 50 states and Washington, D.C., but not through a network of local offices, meaning business is conducted over the phone or online.
USAA mortgage rates and fees
3.5 of 5 stars
USAA mortgage earns 3 of 5 stars for average origination fee.
USAA mortgage earns 4 of 5 stars for average mortgage interest rates.
Borrowers should consider the balance between lender fees and mortgage rates. While it's not always the case, paying upfront fees can lower your mortgage interest rate. Some lenders will charge higher upfront fees to lower their advertised interest rate and make it more attractive. Some lenders just charge higher upfront fees.
USAA mortgage rate transparency
4 of 5 stars
USAA mortgage rates are available online but aren't customized by a user's credit score, location or loan details. The USAA rate webpage shows purchase and refinance mortgage rates and makes it fairly easy to see if discount points have been applied to lower the displayed rate. To get a customized rate quote, you'll need to contact a USAA loan officer or start an online application.
Alternatives to USAA mortgage
Here are some comparable lenders we review that borrowers can consider.
» MORE: Best online mortgage lenders
More from NerdWallet
Methodology
NerdWallet’s overall ratings for mortgage lenders are evaluated based on four major categories: variety of loan types (purchase, refinance, fixed and adjustable, for example), ease of application, rates and fees and rate transparency. Among the factors we consider when scoring these categories are options to apply for and track loans online, the level of detail about mortgage rates on lender websites and our analysis of the rates and fees lenders reported in the latest available Home Mortgage Disclosure Act data. These scores generate ratings from 1 star (poor) to 5 stars (excellent).
