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USAA Review

Reviews 2,542
USAA Bank
USAA Bank
Poor
Reviews 2,542
Sarah Pritzker
Sep. 14, 2022
5 min read
Sarah Pritzker
USAA Bank Summary
USAA offers home purchase and refinance loans tailored to veterans, current service members, and their families with a range of VA and conventional loan offers.

Pros

  • VA loan professionals
  • Low fees

Cons

  • Members Only
  • Poor FAQ

Overview

USAA Bank's emphasis is firmly on military service members, veterans, and their families. Their offerings include home loans to all membership eligible first-time buyers, repeat buyers, and to existing homeowners who want to refinance their home. USAA Bank provides a full range of home purchase and refinance loans, including IRRRL, VA jumbo loans, VA cash-out, and fixed rate VA loans with terms that range from 10 to 30 years. For non-VA eligible members, USAA Bank offers a unique product for first-time homebuyers called the Conventional 97 or "Low down payment loan" which requires only 3% down, along with a full range of conventional mortgages for all types of borrowers with terms ranging from 10-30 years. 

  • Most homes, other than condos and manufacture homes, are eligible for USAA Bank loans

  • No lender origination fees for some loans

  • Down payment as little as 0%

Suitable For?

Although USAA Bank also offers conventional loans, their expertise serving members of the US military makes them ideal for active personnel and veterans from all branches of the military. Military borrowers can find most types of home purchase and refinance loans including jumbo VA and Cash-out loans, making it easier to buy a new home or refinance an existing one across the country. The focus on lending to military, veterans, and their eligible family members, along with the speed and ease of using an online mortgage platform makes USAA Bank a good choice for military homeowners and would-be homeowners.

Loan Features 

USAA Bank offers a range of VA loans, backed by the US Department of Veterans Affairs including jumbo VA loans of up to $3 million so that military members can purchase their dream home. VA loans come with no PMI or down payment required. USAA Bank also offers conventional loans with no VA funding fee and with the option to finance up to 97% of the loan amount. For VA Interest Rate Reduction Refinance Loans (IRRRL) loans, USAA Bank has a highly competitive offer and doesn’t charge any title fee, VA funding fee or appraisal fee and there’s no lender origination fee either¹. Currently USAA Bank is offering to waive the lender origination fee for all VA loans as an added bonus. USAA Bank Loan Officers are professionals in helping military homeowners and would-be homeowners find the right deal for them across their unique options. The online direct lending platform speeds up the loan approval process with the initial pre-approval taking just minutes.

Highlights:

  • No PMI or down payment if the sales price isn't higher than the appraised value of the home, for VA loans

  • Conventional loan options with a minimum of 3% down payment for first time homebuyers

  • USAA Bank pays the title, VA funding fee, and appraisal fee for VA IRRRL loans¹ 

  • VA Jumbo loans up to $3 million

  • No lender origination fees for VA loans

  • Fast pre-approval process

The Application Process

Membership is limited to US service members, eligible veterans, and their families. You can open a membership online or by phone and then apply for a loan immediately, or if you are already a member of USAA Bank you can use your existing account information to automatically complete the application.

USAA Bank's online pre-approval takes just a few minutes once you’ve answered some questions about the purpose of your loan, how much you want to borrow, and your service history. Loan applications are completed over the phone with one dedicated loan officer and borrowers can upload documents online and can even use e-sign to sign some loan documents. For refinances, USAA Bank offers a mobile closing service in most states where a notary can meet you at your home, office, or other place of your choosing, even outside of business hours. 

Deep Dive into Pros and Cons

The biggest pro to taking out a home loan through USAA Bank is that the company is fully focused on supporting US military, veterans and their families. VA-backed loans make up a majority of the loans funded by USAA and come with great rates and features like no PMI and no down payment. For some loan types, USAA Bank charges only a 1% lender origination fee, and no underwriting or other hidden lender fees. USAA Bank currently has a highly competitive offer to waive the origination fee as well as to cover the appraisal, title, and VA funding fee for its VA IRRRL product¹. Added to this is the huge range of loans that members can access, including VA jumbo loans. The fast phone or online streamlined pre-approval process is another pro, making it quicker to get started and easier to submit and sign documents.

On the flip side, USAA Bank's loans aren’t open to anyone who isn’t a USAA member. While USAA Bank does offer many home loans, there is no HELOC or home equity loan available and no FHA or USDA loans. USAA does have low down payment options, as a great alternative to an FHA loan. The website has a very thin FAQ section, making it hard to find answers to specific questions without getting in touch with a person. Most people who want to have a face-to-face consultation will be disappointed, since USAA Bank only takes applications over the phone or online. 

Loan Terms- The Bare Basics

USAA Bank offers VA-backed home loans and jumbo home loans of up to $3 million. A VA loan doesn’t require any down payment or PMI. USAA Bank also offers first-time homebuyer loans with its low down payment option. The Conventional 97 home purchase loan requires only a 3% down payment and doesn’t require the VA funding fee that VA loans do. USAA Bank’s refinance loans are highly popular, especially the VA-backed IRRRL loan for which USAA covers most of the lender fees.

To borrow through USAA Bank you need to be a USAA member and have a minimum credit score of 620 for most loan types. It is recommended to speak with a loan officer to review options specific to your needs.

  • Speak to a loan officer to review credit options

  • Borrow up to $3 million for VA Jumbo loans

  • Buying or refinancing a residential, owner-occupied home or 2nd/investor home

Help & Support

USAA Bank’s online FAQ section isn’t very extensive or helpful and there is no live chat. However, USAA Bank customer representatives are available by phone and email and it's easy to find the right customer support number for your issue.

All of USAA Bank’s customer service numbers can be found online. To request USAA to connect you to a loan officer, you can visit the . 

So, Should you Borrow with USAA Bank? 

Overall, USAA Bank is a formidable lender for active and former US service members and their families. The range of VA-backed and conventional loans they offer is impressive, even though there is no HELOC or home equity option, and the low fees make their loans very attractive. The online and telephone application process can be faster than in-person alternatives. USAA Bank is a great choice for military homeowners.

Physical Address

9800 Fredericksburg Road

San Antonio, TX 78288 

USAA FSB NMLS 401058

Disclaimer

¹ USAA Bank covers the appraisal, title, and VA funding fee on a VA IRRRL. Payment of discount points, taxes, and insurance and HOA fees are the responsibility of the borrower. 

USAA Bank Mortgage offers mortgage products to members where the property is located within the continental United States, AK, HI, and DC. Excludes properties within U.S. territories.

Minimum loan amount requirements may apply. 

VA loan require an up-front, one-time payment called a VA Funding Fee collected at closing, and is non-refundable. The fee is determined by the loan amount, your service history, and other factors. A down payment on your VA loan may be required in certain circumstances and maximum loan amounts vary  by county. 

A home loan refinance may be useful for many customers who want to lower their monthly debt payments. However, a refinance is secured by your home, has closing costs, and may ultimately require paying more in interest over time. 

VA IRRRL: All VA rules, guidelines and additional program requirements will apply. Except as provided by applicable VA guidelines, the same parties obligated on the original loan must be the parties on the title and obligated on the new loan. Proceeds from the new loan will only be used toward payment of the original loan amount. No cash back can be received from the new loan. Payment of discount points, taxes, insurance and HOA fees are the responsibility of the borrower. Other exclusions apply. Refinancing either to lower the monthly payment or change from a variable-rate to a fixed-rate loan could result in an increase in the total number of monthly payments and interest charges paid over the full term of the new loan. 

Membership eligibility and product restrictions apply and are subject to change. 


Sarah Pritzker
Written by
Sarah Pritzker
Sarah Pritzker is a content writer with years of experience and a keen interest in the vast world of online consumer products. She writes for BestMoney and enjoys helping readers make sense of the options on the market.‎

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Trustpilot reviews
See what some customers are saying about USAA Bank
Bad • Reviews 2,542
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Excellent
6%
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1%
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5%
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Andy Grossman
2 weeks ago
USAA has covered me for 50 years and made my family secure
I cannot understand why USAA has such a low average vote on TrustPilot. I have been a member and an insured of USAA since 1972 for auto and property. In 50 years I have had few claims: a blowout on a French motorway, two robberies of family members in public space and a couple of property losses during home moves: and notably in one case USAA paid me $7,000 and when, a few years later, the goods were discovered in a warehouse I voluntarily paid back the $7,000. Perhaps they were surprised. Perhaps not because USAA is, and started out as, a members cooperative reinsurance society of military (and later diplomatic) officers: those least likely to be involved in insurance fraud. USAA is much bigger now and its insured community wider. But I still feel treated as treasured member. My car is insured here in the U.K. although I am 30 years retired from the U.S. Government. I’m not going to analize the complaints of others. All that I can offer is that not every insurer will offer a “new for old” policy, or treat you personally and not just by Internet. I was robbed a few weeks ago while taking my 10 yo grandson to Scotland by a thief in roller skates in a London train station. The personal concern shown by the claims handler meant far more than the recompense for the loss of my backpack.
Paulette
4 weeks ago
Banking Specialist
Banking Specialist. So professional and professional.
Co
Consumer
1 month ago
I have had USAA for years and have had…
I have had USAA for years and have had NO problems. They have been considerate and friendly.
Tennie Gardner
1 month ago
Long term banking!
I love my bank. My Daddy, retired LTC, added me to USAA when I was 16 and been with them ever since. 28 years of banking with them and I am pleased.
IndraSunrise
2 months ago
I've been with USAA for sixteen years
I've been with USAA for sixteen years. I now have five close family members with them as well. Best bank or credit union I've ever dealt with. Completely satisfied.
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