USAA

[MilitaryToFinance]

I'm currently shopping for a home loan. To me, USAA seemed to be about 0.5% above the rest of the market. I've had good experiences with USAA, but I'm not going to buy a product that's wildly out of step with the market. Any body else experience the same?

That's pretty much what I found too. I have my homeowners and car insurance through them. Along with banking, but my real estate agent told me she hates using USAA for mortgages and always seems to find better rates elsewhere.

[Toro]

I just received a forwarded email regarding a USAA scam that's going around. Apparently there are phising and snail mail scams that are going after USAA members. They are able to get pop-ups into the USAA website and sending out snail mails with numbers that are not USAA phone numbers.

Here are the details below

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JTF-GNO published an alert in regards to United Servicemen's Automobile Association (USAA) members receiving phishing and pop-up scams. The document states the likely criminal intent is stealing the user's identity or theft of financial information via stolen credentials.

USAA and many other military-oriented banking institutions are targets of this type of activity. According to JTF-GNO, "other similar financial institutions such as Navy Federal Credit Union (FCU), Pentagon FCU, and Air Force FCU have all issued various alerts to their members warning them of identity theft schemes. Navy FCU previously issued an alert that warned of criminals that had spoofed the Navy FCU website. Air Force FCU issued an alert warning of phone scams attempting to acquire access information of their members.

The threat of cyber crime and the use of personally identifiable information (PII) against military members must be considered as relevant to military operations. Please remain vigilant and if you see something that is suspicious, please pick up the phone call your financial institution immediately before inputting or giving out any of your PII whether it be via the phone or online.

Here is the link to what USAA has to say about this threat on their site: https://www.usaa.com/inet/ent_utils/McStati...9_05_popup_scam

[Guest LtLoad]

You about gave me a heart attack Toro, I filled one of those out the other week. Called USAA.

There IS a legitamate Mastercard Securecode program. The enrollment looks almost identical to the one you see up there, except they don't ask for your SSN. USAA lady said that's the giveaway. It'll also pop up right when you load up USAAs website. I renewed my antivirus subscription the other week through Norton, and filled one of those out.

Best of luck all.

[Herk Driver]

Usually not the best mortgage rates or closing cost. I've tried them for 4 houses, and I found much better deals elsewhere.

When you originally posted this, I was in the market for a new home. Checked USAA and they were .25 to .5 higher than everyone else, like you said.

Just bought the home and USAA's interest rate was the best I could find. Not sure if USAA is finally figuring out what they should be doing or if other banks are just not doing well and are upping the ante with interest rates.

Edited July 1, 2009 by Herk Driver

[ucf_motorcycle]

F*##ers wont insure homes in FL anymore.

[nsplayr]

Just bought in FL and USAA's rates were almost the best I found, but I ended up getting a better deal from a local lender. And as far as insurance goes, I will have USAA homeowner's insurance out by Herbie, so not sure what you're talking about UCF...I know I heard they won't insure homes of a certain age but we're buying a 2003 and it wasn't a problem.

[magnetfreezer]

Just bought in FL and USAA's rates were almost the best I found, but I ended up getting a better deal from a local lender. And as far as insurance goes, I will have USAA homeowner's insurance out by Herbie, so not sure what you're talking about UCF...I know I heard they won't insure homes of a certain age but we're buying a 2003 and it wasn't a problem.

USAA will insure your primary residence if you are AD mil on PCS orders (since they figure you don't have a choice to have a house there); several dudes have run into problems when they PCSed out of FL and USAA dropped the coverage on the old place (as they were renting it out) when they got a new one.

[pawnman]

USAA will insure your primary residence if you are AD mil on PCS orders (since they figure you don't have a choice to have a house there); several dudes have run into problems when they PCSed out of FL and USAA dropped the coverage on the old place (as they were renting it out) when they got a new one.

That checks. USAA will insure your primary residence in FL, but not "investment property", i.e., a rental unit. Can't say that I blame them, they seem to be one of the few insurance companies who have figured out FL is in a hurricane-prone area. I wonder if they have a similar policy for the areas of California that are prone to wildfires?

[ucf_motorcycle]

Alright. I called USAA AGAIN. Now initially when I called in Dec they said they could not offer me a quote. When I asked why they said because the home is in FL. NOW when I called they said because the house was built prior to 2002. I then asked why they are using this cutoff and they said because of the building code change. THen I asked what if my was up to the new code. In which they replied they would need to have an inspection done. I said well I already have said inspection done. I am forwarding the inspection to them... lets see what happens.

I then asked why wasn't I told the age of the home was the reasoning before. They couldn't give me an answer.

Oh and I am Active Duty and this is my primary residence.

Edited August 7, 2009 by ucf_motorcycle

[Duck]

You might want to consider doing some research on Gov. Crist and what he is doing to the insurance business of Florida. My brother-in-law works for State Farm, and while I don't understand all the details, he tells me that he might be out of a job due to Crist's recent push for insurance legislation. He tells me that a lot of the major companies might not be doing much insurance business in Florida, which might be why USAA isn't jumping to help you out.

Edited August 8, 2009 by Duck

[nsplayr]

That checks. USAA will insure your primary residence in FL, but not "investment property", i.e., a rental unit. Can't say that I blame them, they seem to be one of the few insurance companies who have figured out FL is in a hurricane-prone area. I wonder if they have a similar policy for the areas of California that are prone to wildfires?

Noted...good to know if/when we try to rent one day.

[magnetfreezer]

You might want to consider doing some research on Gov. Crist and what he is doing to the insurance business of Florida. My brother-in-law works for State Farm, and while I don't understand all the details, he tells me that he might be out of a job due to Crist's recent push for insurance legislation. He tells me that a lot of the major companies might not be doing much insurance business in Florida, which might be why USAA isn't jumping to help you out.

'2'

After hurricanes, many insurance companies refused to insure hurricane prone (generally coastal/low lying) homes in FL/charging exorbitant rates. People who built their houses on the sand complained and the FL insurance regulators responded by requiring the insurers to insure there if they wrote policies in FL. Many insurers took their ball (sts) and pulled out; the ones that were left generally raised rates and a state insurance collective called Citizens was formed to provide backup homeowners insurance if necessary and assess the cost on all insurance policies. That's why my renters insurance lost $15 worth of fees after leaving FL. My understanding with the homeowners insurance is that USAA too wanted to get out of the business but reinsure the military primary residences with one of the companies still doing business to cover their members. End result: Jim Bob with his 5 kids in a manufactured home 30 miles inland and 150' ASL is subsidizing the people who choose to build 200K condos on sandbars that are there to naturally protect the mainland from hurricanes (that's why they call them barrier islands).

[ucf_motorcycle]

Alright. I called USAA AGAIN. Now initially when I called in Dec they said they could not offer me a quote. When I asked why they said because the home is in FL. NOW when I called they said because the house was built prior to 2002. I then asked why they are using this cutoff and they said because of the building code change. THen I asked what if my was up to the new code. In which they replied they would need to have an inspection done. I said well I already have said inspection done. I am forwarding the inspection to them... lets see what happens.

I then asked why wasn't I told the age of the home was the reasoning before. They couldn't give me an answer.

Oh and I am Active Duty and this is my primary residence.

They won't insure it. I guess if your home is 2002 or newer you can still get it otherwise they won't insure you. They seem to think that a 2002 wood frame home will survive a major storm better than an older full concrete block house will:flipoff:. Makes no sense to me. I chose an older home as the construction of the newer homes in the area (no offense to anyone) is real questionable in my opinion. Typically wood frame and particle board with some brick fascia. But those homes are insurable. Go figure.

I even have a home in Orlando 60 miles from the coast that they won't insure. So any bull about them insuring if you are on PCS orders is not true. The truth is they are covering their ass and could really care less about whether you are stationed in FL or not.

My issue is that they cut it off because of building code. I understand standards but they should have exceptions. Its not like I live in a pile of twigs. My home is full concrete block. So when the big bad wolf comes and blows down all the new wood houses mine will still be standing.

In the meantime I have reluctantly signed a policy with Citizens. I would have liked to use USAA but they seem to think my house will vaporize.

Edited August 14, 2009 by ucf_motorcycle

[spudsmac]

Anyone know the difference between the USAA Career Starter loan and the Pre-Commissioning loan and who qualifies for each?

If you google the starter loan, it comes up as $30,000 at 1.99% and the pre-commissioning loan comes up as $25,000 at 4.99%. I'm in ROTC and am thinking about the loan to invest, but don't know if it's worth investing at 4.99%.

[skinny]

I didn't even know about the 30K "career starter". May have to check into that especially when the interest is 3 points lower than the commissioning loan.

[MilitaryToFinance]

When I commissioned there were two different loans, one for ROTC cadets and one for Academy cadets. The Academy cadets got $30,000 @ 1%APR and ROTC got $25,000 @ 2%APR. My guess is that the interest rates have changed but that the loan amounts are still the same. So if you are going to commission from ROTC you can get the $25,000 loan 6 months prior to graduating and defer all payments(just payments, interest is still accruing) until 6 months after graduating. At 2% APR it was a no-brainer, even if you didn't have an immediate need for the money. However I agree with you, at 4.99% I would not take it unless you have other debt to pay down or honestly need the money. Give the economy, federal interest rates and the stock market trying to find a way to invest that you're going to do better than 5% is going to be difficult. Now if you have credit card debt or student loans those will definitely be higher than 4.99% interest so it would be beneficial to take the USAA loan and pay off those higher rated debts.

[nsplayr]

Here's an idea...CALL USAA! They have some of the best customer service out there and I'm sure they're happy to tell you what products they currently offer. +1 on mappleby...I got the $25K @ 2% a few years back and it was a no brainer. At 5% your results may vary (if that is indeed the case...ask USAA for the straight deal).

[skinny]

Just got off the phone with the pre-commissioning department at USAA. Here's the deal:

The 'Career Starter' 30K @1.99% for 60 mos is for Academy cadets ONLY. (USAFA, West Point, etc)

The 'Pre-Commissioning' 25K @ 4.99% for 60 mos is for all others (OTS, ROTC, etc). Before you can even ask about the loan you must be within 4 months of receiving your commission. So if you're going to OTS, that's one month before you depart for Maxwell. You're required to have USAA checking and savings accounts and the payment must be set up to automatically come out of one of those two accounts. If you're ROTC, USAA has a pdf form that your commanding officer is required to sign and send to USAA before you can begin to apply. Also, a standard credit check will be accomplished.

That's all the info I got on it. If you want more you can call yourself, they were as always, extremely helpful. 1-800-531-4610 will take you straight to the Pre-Commissioning Department. Cheers...

Edited March 10, 2010 by skinny

[DeHavilland]

It has been a few years but when I used USAA for a home loan, they had a guarantee to lower the rate by .5% if they failed to meet the agreed closing date. Well, there I sat with the pen in hand ready to sign at closing and the CFO of the family noted that there was an error in the paperwork. I called USAA and explained the problem. They did not bat an eye and said they would fix the problem and drop the rate by .5%. Now over the life of a 30 year loan, that cost them some serious bucks. In this case, they were A 100% on my report card.

[Magellan]

It has been a few years but when I used USAA for a home loan, they had a guarantee to lower the rate by .5% if they failed to meet the agreed closing date. Well, there I sat with the pen in hand ready to sign at closing and the CFO of the family noted that there was an error in the paperwork. I called USAA and explained the problem. They did not bat an eye and said they would fix the problem and drop the rate by .5%. Now over the life of a 30 year loan, that cost them some serious bucks. In this case, they were A 100% on my report card.

USAA is either hit or miss they can either do what you want for you or they can't, and there is absolutely no middle ground or flexibility on their part whatsoever.

Sounds like they are sticking it to the ROTC guys, which is shitty since you are going into the same exact job as your academy bros. I would be curious what would happen if somebody sued them for discriminatory lending.

Other examples I have encountered where USAA has come up short in the three years I have banked with them.

-Performance first savings used to be index based which meant the interest rate kicked the crap out of any other savings account you could find provided you kept more than $10,000 in the account.

-Cashing out CDs is a PITA first you have to call them deal with the automated system and get handed off to another person twice, before they will close the CD and transfer the money into one of your other accounts. This usually takes anywhere from 5-20 minutes. Then at the end they go through 20 questions about why you are not renewing the CD, and to me I consider this wasting my time...not providing customer service. However setting up a CD only takes 30 seconds with a good internet connection.

-VA home loans I recently had to go with another lender to purchase my home, because USAA required an excess amount of time to commit to a closing date for a VA loan(35 days) even though they had already underwritten my loan. On top of this they charge you $50 for preapproval and a $300 application fee, which in fairness they credit towards the loan when you close. However, no other bank I talked with did this, and they were all more than willing to match any interest rate/points combination USAA would offer provided you had a FICO credit score higher than 720-740.

[xaarman]

-VA home loans I recently had to go with another lender to purchase my home, because USAA required an excess amount of time to commit to a closing date for a VA loan(35 days) even though they had already underwritten my loan. On top of this they charge you $50 for preapproval and a $300 application fee, which in fairness they credit towards the loan when you close. However, no other bank I talked with did this, and they were all more than willing to match any interest rate/points combination USAA would offer provided you had a FICO credit score higher than 720-740.

This is my only gripe about USAA. They force you to lock in with them - I wanted to shop around. They were incredibly stubborn and self righteous about the whole thing... I ended up going with a realtor recommended local guy, and I'm glad I did. I called him any time I had a question (and I had a lot.)

Edited March 11, 2010 by xaarman

[Magellan]

This is my only gripe about USAA. They force you to lock in with them - I wanted to shop around. They was incredibly stubborn and self righteous about the whole thing... I ended up going with a realtor recommended local guy, and I'm glad I did. I called him any time I had a question (and I had a lot.)

In my opinion and experience that is the best way to go. Ask around from people who bought homes. Find a solid Realtor and go with his preferred lender.

[nsplayr]

Agree...my only financial product that isn't currently with USAA is my mortgage b/c they simply couldn't match another lender.

[Learjetter]

F*##ers wont insure homes in FL anymore.

Hate replying to old posts...but here's my $.02 on USAA:

I had USAA for my homeowners, but after a particularly nasty hailstorm here in tornado alley last year, they sent a letter that said they were doubling the roof peril deductible from 1% to 2% without a corresponding reduction in premium. Talking about it at work confirmed a bunch of us who had USAA all got the same letter. We called in droves to re-negotiate, to no avail. So we all switched to another company with better coverage and a lower premium. I think in the end, something like 16-18 of us fired USAA over that. I got a great car loan from Bank of America's Military bank (the old Fort Sam Houston Bank) a dozen years ago--so I switched to them for banking. Never looked back.

USAA still rocks on auto insurance, and home equity loans, though.

Fly safe!

[nsplayr]

F*##ers wont insure homes in FL anymore.

And as far as insurance goes, I will have USAA homeowner's insurance out by Herbie, so not sure what you're talking about UCF...I know I heard they won't insure homes of a certain age but we're buying a 2003 and it wasn't a problem.

Just in case anyone doesn't wanna go back a page.