USAA

USAA

About USAA

USAA is a full-service financial institution that specifically serves military personnel and their families. Established in 1922 in San Antonio, Texas, USAA stands for the United Services Automobile Association, but its services have grown to include mortgage products, banking, insurance policies and investment options.

Over 8.8 million veterans, active service military personnel and their families are members. USAA is not a publicly traded company, nor is it affiliated with the U.S. Department Veterans Affairs (VA); it only answers to its members. Much like a credit union, you must be a member to obtain a mortgage or participate in any of the other programs that USAA offers.

Home Mortgage Programs

USAA mortgage rates are very competitive with the market. They offer a full range of loans, including VA and FHA mortgages, as well as conforming mortgages backed by Fannie Mae or Freddie Mac. Fixed-rate mortgages are available in 15- or 30-year terms, and adjustable rate mortgages (ARMs) are offered with a 5-year initial term.

USAA also offers jumbo loans on mortgages over $417,000. Rates for jumbo mortgages follow market value and tend to run a bit higher than standard conforming mortgages.

If you’re shopping for a home, you can get pre-approved for a USAA Mortgage via their website, usaa.com. Once you have been pre-approved and have a contract for a home purchase, you can complete the process with USAA Mortgage through their toll-free number.

Home Equity Loans

USAA offers two distinct home equity loan programs. The first is a standard home equity loan, where you borrow a single lump sum secured by the equity in your home. USAA allows you to borrow against up to 80 percent of your home value on a home equity loan, minus whatever you still owe on your current mortgage. These are fixed-rate loans with terms of up to 20 years, although you can get a lower rate by choosing a term of 15 years or less.

The other product is a home equity line of credit (HELOC). This is like a credit card secured by the equity in your home. You can borrow up to a certain predetermined amount, when you need it and in the amounts you need. You pay interest only on what you borrow. USAA allows you to borrow against up to 70 percent of your home value on a HELOC (again, minus whatever you owe on your current mortgage). USAA does not charge closing fees, annual fees or early payment charges on HELOCs.

Mortgage Refinancing

USAA offers a full range of mortgage refinancing options, including cash-out refinancing. Refinance rates are very competitive with other mortgage lenders. Refinance options are the same as for mortgages to purchase a home, including conforming, VA, FHA and jumbo mortgages, with terms of 15- or 30-year fixed-rate loans or 5-year ARMs.

A standard home refinance will require that you have an appraisal done to determine the current property value and how much equity you have. You’ll also need to go through a credit check, and provide proof of your income. Fees are similar to those on a home purchase mortgage.

If you owe more on your mortgage than the property is worth (known as being underwater on the loan) or have little equity in the property, you will not be able to qualify for a standard refinance. If you have a VA or FHA mortgage, you may still be able to obtain a streamlined refinance as long as you are current on your mortgage payments, as those do not require a property appraisal.

If you are underwater on a conforming mortgage backed by Fannie Mae or Freddie Mac, you may be able to qualify for a federal Home Affordable Refinance Program (HARP) through USAA, provided that you are current on your mortgage payments. You do not need to have your current mortgage with USAA to qualify for a HARP refinance through them.

USAA Home Improvement Loan

A home improvement loan is funding that is used to finance the repair of your home. As the name implies, with a home improvement loan, you would be getting money to pay for the expenses of improving your home. This money will then be paid back to your lender over time.

The two most popular types of home improvement loans are home equity loans and personal loans. Personal loans are more advisable if the improvement you are going for is not a major one. Painting a room or replacing the lighting are examples of minor projects for which a personal loan would be ideal. For major home improvement projects such as adding a new room or replacing the roofing of the house, a home equity loan is perfect.

If you are of eligible military status, you could get personal loans for your home improvement from USAA up to the tune of $20,000. All you have to do to get this loan is to apply for it online on their website. Once you get approved, your rates will be shown to you and you’ll receive your loan funds in your USAA bank account within 24 hours. If you get a home equity loan from USAA, the loan amount will be paid back with monthly interest over a fixed loan term. Home equity lines of credit work similarly to credit cards, allowing you to make withdrawals over the draw period and then pay back over time.

USAA Closing Costs

The United Services Automobile Association (USAA) is widely regarded as an excellent mortgage lender due to its highly competitive rates and fees. It is however only available to eligible members of the military. And due to the military nature of its membership, USAA is one of the best when it comes to Veteran Administration loans. VA mortgages are loans that are guaranteed by the Department of Veterans Administration. When compared with conventional mortgage types, VA mortgages come with lower interest rates. VA loans typically require you to pay a one-time payment upfront. This fee is known as the VA funding fee, and its value is calculated using your loan amount, service history, and a few other factors.

Any VA home loan that you are taking is definitely going to come with closing costs. They might be relatively less than with other loans, but they are still a part of the loan. If you are looking to reduce these closing costs, you can request lender credit from USAA. Put simply, this will mean that your interest rate will be reduced by 0.25 percent over the period of your loan. If your VA loan is for purchasing a house, USAA will require that your closing costs be paid out of pocket. However, if you are refinancing your mortgage with a VA, you can roll the closing costs into the loan amount. This means that you’ll end up paying more due to interest.

USAA Jumbo Loan

Jumbo mortgages are mortgages that go beyond the loan limit that has been set by the Federal Housing Finance Agency for a particular area. They are usually the sort of loan you would get if you are looking to purchase a home that costs above $647,200. The process for getting jumbo loans isn’t very different from the process for getting regular loans. The major difference is the amount that is being financed. USAA offers jumbo loans up to 3 million dollars with no private mortgage insurance. According to the official USAA website, the entire loan process is personalized, and you would have to get in touch with a USAA loan officer to walk you through the process.

As far as VA loans are concerned, the loan amount limit is $726,200. This loan limit is not a cap on the amount of the house you are looking to purchase, but it indicates how much you can borrow without needing to make a down payment. This amount can vary from county to county, but $726,200 is the most common limit you will find across most counties. High-cost areas such as Los Angeles and New York can have VA limits that are up to $1,089,300.