USAA Mortgage Review 2024
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- 50+ mortgage lenders reviewed and rated by our team of experts.
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- Objective, comprehensive star rating system assessing 120+ categories and 5,000+ data points.
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Our Take
4.0
USAA is among the top five VA loan lenders by volume, though conventional loans are available, too. USAA membership is open only to current and former military and eligible family members. Most likely to appeal to VA borrowers.
Pros
- Wide range of VA options, including jumbo loans and refinancing.
- Offers a low-down payment loan for first-time home buyers.
- Offers 10-, 15-, 20- and 30-year repayment terms, which is unusually flexible.
Cons
- Average VA loan interest rates are less competitive than some other top VA lenders, according to the latest data.
- Does not offer home equity loans or HELOCs.
Lender | Min. credit score | Min. down payment | |
|---|---|---|---|
580 | 3% | Visit Lenderat New American Funding at New American Funding | |
620 | 3% | Visit Lenderat NBKC at NBKC | |
580 | 3.5% | Visit Lenderat Rocket Mortgage, LLC at Rocket Mortgage, LLC |
Full Review
USAA is a large national bank based in San Antonio. Loans are available nationwide, though some products are restricted by location.
🏠 Popular loan types include: conventional purchase loans; conventional refinances; VA purchase loans; VA streamlined refinances; VA cash-out refinances; VA jumbo loans.
🔑 Specialty loan options include: low-down payment loan first-time home buyers; Fannie Mae HomeReady.
USAA membership comes with perks, including discount insurance options and savings on consumer products and services.
» MORE: How to apply for a mortgage
How we score USAA
Every year, NerdWallet writers and editors use the latest data and independent research to score lenders on an overall rubric, reflecting factors that are most important to mortgage borrowers. Select Why This Category Matters below to learn more.
USAA has a NerdWallet home loans rating of 4 stars overall. Here’s a breakdown of this year’s score.
Category | Star rating |
|---|---|
Average mortgage rates and fees | |
Mortgage rate transparency | |
Variety of loan types | |
Customer experience |
- Why This Category Matters
Average mortgage rates and fees (30%)
Our team analyzes federal data to compare mortgage lenders’ origination fees and offered mortgage rates, measuring annual averages across all loan types, as reported by the lenders. The lowest combination of average rates and fees earns the highest star rating in this category. (It’s worth noting that loans considered higher risk, including those such as FHA loans that are easier to qualify for, often have higher interest rates and fees.) Pro tip: In some cases, paying upfront fees may lower a borrower’s mortgage interest rate.
Mortgage rate transparency (25%)
We check how straightforward it is to comparison-shop rates online. NerdWallet’s transparency ratings are higher for lenders that post sample rates on their sites, and highest for sites with self-serve tools that allow shoppers to see what rates might be like for their particular loan. Pro tip: Borrowers who compare customized rate quotes by applying to three or more lenders could save thousands of dollars over the life of their loan.
Variety of loan types (25%)
Finding the right mortgage is different for each borrower. The highest star ratings in this category are awarded to lenders that our research shows offer a wide range of loan types, improving the odds that a borrower will find the best match for their needs: options for purchase and refinance; fixed-rate and adjustable-rate loans; government-backed FHA, VA or USDA loans; renovation or construction loans; and home equity loans or HELOCs.
Customer experience (20%)
How easy is it to interact with this lender? The highest-rated lenders in this category offer features that are convenient and clarifying for borrowers, such as: an online application, multiple customer service options, a helpful mobile app and candid closing timeline communications.
What borrowers say about USAA
NerdWallet’s lender star ratings assess objective qualities, including rates, fees and loan offerings. To help you understand borrowers’ subjective experiences, NerdWallet has gathered customer satisfaction ratings from Zillow. We also contacted USAA customer support.
→ Below-average customer rating on Zillow.
Customer rating: 3.55 out of 5, as of the date of publication. Rating reflects just 77 customer reviews, a small number for mortgage lender reviews on Zillow.
🤓 Our Nerds say…
Borrowers can receive live customer support via phone, or automated support via online chat. When we called, we were immediately connected with a live agent. There is no in-person support.
Alternatives to a home loan from USAA
We recommend comparing mortgage rate offers from three or more lenders.
Borrowers interested in a VA purchase loan may be interested in Veterans United, the largest VA lender in the country by volume.
Those who would like to compare both VA and conventional options can find them at Navy Federal Credit Union.
VA borrowers seeking more niche loans — including VA renovation loans — can find them at Network Capital.
» MORE: Best VA lenders
More from NerdWallet
NerdWallet’s overall ratings for mortgage lenders are evaluated based on four major categories: average mortgage rates and origination fees, rate transparency to consumers, variety of loan types (purchase, refinance, fixed and adjustable, for example) and customer experience. Among the factors we consider in these categories are: options to apply for home loans online, typical time to close, mobile app experience, level of detail about mortgage rates on lender websites, and NerdWallet’s own analysis of the rates and fees lenders reported in the latest available Home Mortgage Disclosure Act data. These and other items inform detailed rubrics, which generate ratings from 1 star (poor) to 5 stars (excellent). Read more about how we rate mortgage lenders here.
