USAA Mortgage Review: Is It the Right Mortgage Option for You?

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USAA offers banking and lending services to military members and their families. If you’re a USAA member or you can qualify to join, you might want to consider getting a mortgage through them.

USAA offers low fixed-rate mortgages, low fees and even VA loans with no down payment required. This review will go over USAA mortgage options, how its rates and fees stack up, who qualifies and how it compares to other lenders.

USAA Overview

USAA is a national bank that offers services to military members, veterans, employees of certain federal agencies, pre-commissioned officers, and spouses and children of members.

USAA offers the following to its members:

• Banking
• Loans
• Auto and property insurance
• Life and health insurance.

There are also numerous perks, including:

• Discounts for travel
• Shopping discounts
• Car maintenance and repair.

USAA serves nearly 14 million members worldwide and paid out over $2.2 billion in dividends to members in 2024 alone.

Good To Know

USAA is known for having low fees and competitive rates on mortgage loans, including VA loans for qualifying military and veteran applicants. USAA offers in-person support through nationwide branches, and has a fantastic online experience and mobile app as well.

How the USAA Mortgage Process Works

If you want to get a mortgage through USAA, you’ll need to get prequalified, complete your mortgage application and walk through the homebuying or refinance process. Here are the steps you’ll need to take to get a USAA mortgage or refinance:

1. Get Prequalified

If you’re buying a home, the first step to getting a mortgage is prequalification. With USAA, you can get prequalified for a mortgage completely online. The process only takes a few minutes.

Here’s what you’ll need to provide:

• Your personal information: Name, address, Social Security number, and proof of income
• Your financial information: Proof of income, bank statements, investment accounts, retirement accounts and any other assets
• Home information: Details on the home you are purchasing or refinancing
• Agree to a credit check: A credit check will be required to approve you for the loan. Note that this can impact your credit score.

Once approved, you’ll receive a prequalification letter that you can use while you’re submitting offers on a home.

If you’re refinancing your home, prequalification includes reviewing available refinance options and rates.

2. Complete the Mortgage Application

Once you are prequalified, you can start making offers on homes. Once an offer is accepted, you’ll continue with the home-buying process due diligence, inspections, etc.

As part of the process, USAA requires you to complete a more in-depth application. This includes providing:

• Income statements, such as pay stubs or award letters
• Current bank statements
• Tax returns
• Other supporting documents

Your lender will help you estimate your payments, including taxes, homeowner’s insurance and mortgage insurance, if applicable. If any additional documentation is needed, a USAA loan officer will reach out to guide you through the process.

3. Closing

Once everything is buttoned up, you’ll sign final papers on the purchase of your home on the scheduled closing date. This includes disclosures and mortgage agreements, which are all handled by a title company at closing.

On the closing date, funds are dispersed to the seller, and you’ll need to bring the following to the appointment:

• A driver’s license, passport or military ID
• A cashier’s check or wire transfer to cover your closing costs and down payment

USAA is very hands-on during the process, including assigning you a dedicated loan officer to help with any needs while you get a mortgage. USAA customer service for your mortgage is available during business hours, but you can email your loan officer at any time.

Pros and Cons of USAA

Pros:

• Low mortgage rates, especially for VA loans
• Military support at all levels
• Outstanding customer service
• Well-designed mobile app for banking and mortgage management

Cons:

• Limited eligibility — only open to military-related positions and families
• No home equity loans or lines of credit available

USAA Loan Options

USAA offers home mortgages, home refinancing and VA loans. Here’s a breakdown of the mortgage options, rates and fees.

Conventional Loans: Fixed-Rate

You can get conventional loans at USAA with fixed rates below 7% APR. USAA does not currently offer adjustable-rate mortgages.

You can choose your term length, with 15-year and 30-year mortgages being the most popular. While rates may be competitive, they assume that you’re paying down the rate with discount points, which is an added cost that can become expensive.

VA Loans

USAA offers VA conventional mortgages, VA Jumbo mortgages and VA refinancing options. These loans are offered to qualifying military members and veterans. VA loans allow you to purchase a home with no down payment, no origination fees and no private mortgage insurance.

These loans offer better rates than a conventional mortgage and allow you to use your VA home loan benefit. USAA rates on VA loans are currently in the low 6% APR range; however, this assumes you’re buying discount points to reduce your rate.

Jumbo Loans

Jumbo loans are for mortgages that are above the “conforming loan limits,” which is currently $806,500. If you’re in a high-cost area, a jumbo loan is any home above $1,209,750.

While USAA doesn’t offer conventional jumbo loans — you can get a VA Jumbo loan or VA Jumbo refinance loan. USAA specifically offers jumbo loans for home purchases of up to $3 million. It also offers “zero down” VA Jumbo loans for purchases of up to $1.5 million.

Rates are competitive, but only after paying discount points to lower them. There are no origination fees or private mortgage insurance on any VA Jumbo loans.

Refinance Options With USAA

USAA offers both conventional and VA refinance loans for your mortgage. You can also apply for a VA cash-out refinance or conventional cash-out refinance loan through USAA.

Here are the options:

• VA cash-out refinance loan: Refinance up to 90% of the value of your home and use cash for anything. Jumbo has a $500,000 cash-out limit.
• VA interest rate reduction refinance loan: Refinance up to 100% of the value of your home to lower your rate with no closing costs. These are available in regular and jumbo.
• Conventional refinance loan: Refinance up to 95% of the value of your home, but may require PMI.
• Conventional cash-out refinance: Refinance up to 80% of the value of your home to get cash back.

First-Time Homebuyer Programs

While USAA doesn’t support FHA loans or USDA loans, you can get a “Low Down Payment Loan” that is an alternative to these first-time homebuyer programs. USAA also supports the HomeReady program that offers low down payment mortgages and refinancing.

A low down payment loan allows you to put down as little as 5% on a home purchase, but if you haven’t owned a home within the last three years, you’ll need to take an online course for “first-time homebuyers.” 

USAA Mortgage Rates and Fees Comparison

USAA rates and fees can vary, but some fees are required.

For example, all VA home loans come with a “VA Funding Fee” that is sent to the VA. This fee can range amount between 1.1% and up to 3.35% of your total mortgage amount. It varies based on your down payment, your service history and if you’ve used your VA loan eligibility before.

In general, USAA offers competitive rates on both conventional and VA loans. Rates start at 6.75% for conventional mortgages and 6.125% for VA loans. 

Having these low rates assumes that you’re paying a certain number of points. You can find these listed on the USAA website. Points allow you to “buy down” your rate, but cost 1% of the loan amount per point.

Here’s a breakdown of the current USAA mortgage rates and estimated fees:

USAA vs. Other Mortgage Lenders

While USAA offers superior customer service and decent interest rates on mortgages for military members and their families, there may be better options available to you. Here’s how USAA stacks up against the competition:

Who Should Consider USAA?

USAA is only available to military members and their families. But it’s not always the best option for a home mortgage — even if you’re a member. Here’s who USAA mortgages are best for (and who should avoid them):

Best for:

• Military members, veterans, and their families
• First-time home buyer using VA benefits
• Getting a cash-out refinance on a VA loan
• USAA members who want to avoid loan fees and private mortgage insurance.

Not ideal for:

• Buyers who don’t qualify for VA loans.
• Those with substantial home equity to roll it into another home purchase.
• Buyers who can qualify for better rates elsewhere and without discount points.

Information is accurate as of May 16, 2025.

Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.

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