We have the Best Home Equity Line of Credit Rates in the Market
USAA Home Equity Line of Credit Review
USAA is a good lender for individuals who have a military connection. However, they only offer home equity lines of credit and not home equity loans, so you need to be sure of what product you want. If you are or were a member of the armed forces, then you should check out USAA if you are interested in a home equity loan.
What We Learned
PROS
Great rates and benefits for members or former members of the armed forces and their family.
CONS
USAA does not offer home equity loans.
OVERALL SCORE
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Detailed Review
USAA is a bank and lending institution that primarily serves current and former members of the armed forces. They do not offer home equity loans, but their rates and fee structures on home equity lines of credit are some of the best in the industry. You can borrow up to 70% of the value of your home.
Rates and Fees
USAA offers some of the best interest rates on home equity lines of credit available on the market. These rates are low because of the different government programs USAA has access to because the primarily serve current and former members of the armed forces. While their home equity line of credit comes with a variable interest rate, you are able to lock in a rate before your repayment period starts, and, unlike most lenders we reviewed, USAA doesn’t charge any closing costs or associated fees for their service, which means customers can get a great value on their home equity line of credit when compared to the other lenders we reviewed.
Eligibility
USAA doesn’t have any eligibility information on their website, but you have to be a current or former member of the armed forces, or a family member, in order to access any of USAA’s products. Reviews indicate that they are more lenient than other lenders when it comes to things like credit score, debt-to-income ratio, and loan-to-value ratio requirements to obtain a line of credit. We weren’t able to find out if USAA will let you use a second home or rental property as collateral for your line of credit, however, so you will have to get in touch with them to discuss your specific situation if that’s something you want to do.
Loan Requirements
It is hard to make an apples-to-apples comparison when it comes to loan requirements, as USAA does not offer home equity loans, only home equity lines of credit. However, their requirements for the lines of credit are about standard for the industry. Most lines have a 30 year payoff timeframe and you can borrow up to 70% of the value of your home. USAA does require you to consent to a lien being put on the home that you are looking to extract equity from, and they use current credit score at the time that your repayment period starts to determine your interest rate.
Customer Experience
Customers have had positive experiences with USAA. Their website has some helpful information and tools, but lacks the live chat features and other support options that are found at other lenders. Customers liked the flexible repayment options, as well as the service they received once they talked to an in person representative. Additionally, customers found that the ability to lock in a rate before their repayment period allowed them to get a level of predictability that other lenders can’t offer.
Summary
USAA is a good place to go for your home equity line of credit if you are a member at the bank. The discounts and lack of closing costs they can offer make them incredibly appealing, but these features are only available to a select client base. Learn more about home equity options in your state.
