**USAA mortgage rates and eligibility (2025)**: **USAA exclusively serves military members, veterans, and their families**.

You must be **USAA member** to get home loans. **2025 USAA mortgage rates**: **Conventional 30-year fixed**: 6.625-6.875% (0.125-0.25% below national average). **VA 30-year fixed**: 6.375-6.625% (**0.25-0.375% lower** than conventional, **no PMI required**). **15-year fixed**: 5.875-6.125% (conventional), 5.625-5.875% (VA). **5/1 ARM**: 6.125-6.375% (initial rate). **Jumbo loans** (up to $2M): 6.75-7.25%. **Note**: Rates updated daily, vary by credit score/LTV/location. **Who qualifies for USAA home loans?** **1.

USAA membership required** (eligibility groups): **Active duty military** (all branches: Army, Navy, Air Force, Marines, Coast Guard, Space Force). **Veterans** (honorable discharge). **Retired military** (20+ years service). **Commissioned officers** (NOAA, Public Health Service). **Military family members** (spouse/children of eligible members). **Gold Star families** (surviving spouse/children). **Pre-commissioned officers** (cadets/midshipmen at service academies). **2.

Standard mortgage qualification** (same as civilian loans): **Credit score minimum**: 620 conventional, **no minimum** for VA (USAA typically requires 620+ for best rates). **Debt-to-Income (DTI)**: Max 43% conventional, up to **50-55% VA** with compensating factors. **Employment**: 2 years stable employment history (military service counts). **Down payment**: 3% minimum conventional, **0%** for VA loans. **Income**: Sufficient to cover monthly payment + debts. **3.

Property requirements**: **Primary residence** (must occupy within 60 days). **Meets appraisal standards** (VA appraisal more strict: requires functional utilities, structural soundness). **Located in U.S. or territories**. **USAA advantages vs other lenders**: **For VA loans**: **0% funding fee for disabled veterans** (saves $2,500-$3,000 on $250k loan, vs Rocket Mortgage/Veterans United 2.15-3.3%). **No lender fees on VA loans** (saves $1,000-$2,000). **Military-friendly underwriting** (understands PCS moves, deployment income gaps). **For conventional loans**: **3% down payment programs** (vs 5-20% at many banks). **No application fee** ($300-$500 savings). **Rate discount for USAA Bank customers** (-0.125% APR). **Flexible credit requirements** (can work with 620-640 scores that other lenders reject). **Example qualification scenario (2025)**: **Profile**: Active duty E-6 (10 years service), $70k annual income, 680 credit score, $300k home purchase (San Diego, CA). **VA loan option**: 0% down ($0), 6.50% rate, $1,896/month P&I, **no PMI** ($230/month savings), 0% funding fee (disabled), total monthly ~$2,600 (with tax/insurance). **Conventional option**: 3% down ($9,000), 6.75% rate, $1,895/month P&I, **PMI $180/month**, total monthly ~$2,775. **VA loan savings**: $175/month ($2,100/year), **$63k over 30 years**. **Application process**: **1.

Verify USAA eligibility** (usaa.com or 1-800-531-8722). **2.

Get pre-approved** (online application 15 minutes, decision in 1 business day). **3.

Obtain VA COE** (Certificate of Eligibility) if using VA loan (USAA assists). **4.

Shop for homes** (USAA will recommend real estate agents familiar with VA loans). **5.

Order appraisal** (USAA arranges). **6.

Final underwriting** (2-3 weeks). **7.

Closing** (USAA typically closes in 30-35 days). **Restrictions**: **USAA does NOT lend in**: Alaska, New York (refer to partner banks). **USAA does NOT offer**: FHA loans (VA loans have better terms for military members), USDA loans, reverse mortgages. **Contact**: USAA Home Loans: 1-800-531-8722, Monday-Friday 7am-11pm CT, Saturday 8am-7pm CT.

**USAA monthly mortgage payment calculation**: **Total Monthly Payment = Principal & Interest (P&I) + Property Tax + Homeowners Insurance + HOA (if applicable) + PMI (conventional loans only)**. **Step 1: Calculate Principal & Interest (P&I)**: **Formula**: M = P × [r(1+r)^n] / [(1+r)^n - 1]. **M** = monthly payment. **P** = loan amount (purchase price - down payment). **r** = monthly interest rate (annual rate ÷ 12). **n** = number of payments (loan term in years × 12). **Example 1: VA loan (0% down, no PMI)**: **Purchase price**: $350,000. **Down payment**: $0 (0% required). **Loan amount**: $350,000. **Interest rate**: 6.50% (2025 USAA VA rate). **Term**: 30 years (360 months). **Monthly rate**: 6.50% ÷ 12 = 0.00542. **P&I calculation**: M = 350,000 × [0.00542(1.00542)^360] / [(1.00542)^360 - 1] = **$2,212/month**. **Property tax** (1.2% annual, national avg): $350,000 × 0.012 ÷ 12 = **$350/month**. **Homeowners insurance** (avg $1,200/year): **$100/month**. **HOA**: $0 (none). **PMI**: $0 (**VA loans have no PMI**). **Total monthly payment**: $2,212 + $350 + $100 = **$2,662/month**. **Example 2: Conventional loan (3% down)**: **Purchase price**: $350,000. **Down payment**: $10,500 (3%). **Loan amount**: $339,500. **Interest rate**: 6.75% (2025 USAA conventional rate). **Term**: 30 years. **Monthly rate**: 6.75% ÷ 12 = 0.005625. **P&I**: $339,500 × [0.005625(1.005625)^360] / [(1.005625)^360 - 1] = **$2,202/month**. **Property tax**: **$350/month**. **Homeowners insurance**: **$100/month**. **PMI** (0.5% annual on loan amount <20% equity): $339,500 × 0.005 ÷ 12 = **$141/month**. **Total monthly payment**: $2,202 + $350 + $100 + $141 = **$2,793/month**. **Comparison**: **VA loan**: $2,662/month. **Conventional**: $2,793/month. **VA saves $131/month** ($1,572/year, **$47,160 over 30 years**). **Step 2: USAA mortgage fees (closing costs)**: **VA loan fees**: **Appraisal**: $500-$800 (required for VA loans, slightly higher than conventional). **Title insurance**: $1,000-$2,000 (varies by state/loan amount). **Title search & exam**: $200-$400. **Recording fees**: $100-$300. **Credit report**: $50-$100. **VA funding fee**: **0%** for disabled veterans with 10%+ VA disability rating (saves $2,500-$7,500). **2.15%** for first-time VA loan users (0% down) = $7,525 on $350k loan. **1.25%** for subsequent use = $4,375 on $350k loan. **USAA lender fees**: **$0** (USAA does not charge origination, application, or underwriting fees on VA loans). **Total VA closing costs** (disabled veteran, 0% funding fee): **$1,850-$3,600** (0.5-1% of loan). **Total VA closing costs** (first-time, 2.15% funding fee): **$9,375-$11,125** (can be rolled into loan). **Conventional loan fees**: **Appraisal**: $400-$600. **Title insurance**: $1,000-$2,000. **Title search & exam**: $200-$400. **Recording fees**: $100-$300. **Credit report**: $50-$100. **Origination fee**: **0%** at USAA (typically 0.5-1% = $1,700-$3,400 at other lenders). **Discount points** (optional): 1 point = 1% of loan = $3,395 to reduce rate by ~0.25%. **Prepaid items**: **Homeowners insurance** (1 year prepaid): $1,200. **Property tax** (3-6 months escrow): $350-$700. **Prepaid interest** (from closing to month-end): $200-$400. **Total conventional closing costs**: **$3,500-$6,000** (1-1.75% of loan, excluding points). **Fee comparison (disabled veteran)**: **VA loan**: $1,850-$3,600 closing costs + $0 down = **$1,850-$3,600 total upfront**. **Conventional**: $3,500-$6,000 closing costs + $10,500 down = **$14,000-$16,500 total upfront**. **Savings with VA**: **$12,150-$12,900 upfront**. **Step 3: Long-term cost analysis (30-year total)**: **VA loan**: P&I: $2,212 × 360 = $796,320.

Property tax: $350 × 360 = $126,000.

Insurance: $100 × 360 = $36,000. **Total paid**: $796,320 + $126,000 + $36,000 + $3,000 closing = **$961,320**. **Interest paid**: $796,320 - $350,000 = **$446,320**. **Conventional loan**: P&I: $2,202 × 360 = $792,720.

Property tax: $126,000.

Insurance: $36,000.

PMI: $141 × 120 months (until 20% equity) = $16,920. **Total paid**: $792,720 + $126,000 + $36,000 + $16,920 + $5,000 closing + $10,500 down = **$987,140**. **Interest paid**: $792,720 - $339,500 = **$453,220**. **VA loan saves**: $987,140 - $961,320 = **$25,820 over 30 years**. **USAA-specific benefits in payment calculation**: **Rate discount** (-0.125% if you have USAA Bank checking account). **Escrow flexibility** (can waive escrow if 20%+ equity, saves escrow shortage fees). **No prepayment penalty** (can pay off early or make extra payments without fees). **Calculator tips**: Use USAA online calculator (usaa.com/mortgages) for personalized rates. **Include VA disability status** in calculator (unlocks 0% funding fee). **Adjust property tax** by your state (TX 1.8%, CA 0.76%, FL 0.98%). **Factor in MIP removal** at 20% equity for conventional (PMI drops off, saves ~$141/month). **Common mistakes to avoid**: **Forgetting PMI** on conventional loans <20% down (adds $100-$300/month). **Using national average property tax** (varies 0.3-2.5% by state). **Not factoring VA funding fee** into loan amount if financed (increases P&I ~$40/month). **Ignoring HOA fees** (avg $200-$400/month in many areas, not part of mortgage but required). **Monthly payment affordability rule (USAA uses 28/36 rule)**: **28% rule**: Total housing payment ≤ 28% of gross monthly income. **36% rule**: Total debt payments (housing + car + student loans + credit cards) ≤ 36% of gross income. **Example**: $70k annual income ($5,833/month gross). **Max housing payment**: $5,833 × 0.28 = **$1,633/month** (without other debts). **Max total debt**: $5,833 × 0.36 = **$2,100/month** (housing + all debts). **VA loans allow up to 55% DTI** with compensating factors (high credit score 720+, residual income, cash reserves), so military members may qualify for higher payments.