Don't even think about getting a non-VA loan from USAA

USAA just screwed my family out of a house. Banked almost exclusively with them for 21 years and have a 758 credit score, steady job, etc. We found a HUD foreclosure for about half what we were preapproved for. 4 bed, 3 bath, 3 car detached garage on 2 acres less than a mile from where I work. Estimated value on the place was more than twice the price. You can't get a VA loan if the place needs any repairs and HUD won't let any repairs happen till after the sale. The house needed about a $1000 in minor stuff, so no VA. USAA offered us a conventional loan with an amazing rate. First, they massively low-balled the appraisal. The guy used terrible comps like a 3 bed, 1 bath on 7000 sqft lot with no garage 2 miles outside of the city. Are you kidding me? The place appraised more than $100k below true comps in it's neighborhood. Still, it was higher than the foreclosure price, so we moved forward. Then 1 week before close USAA denies the loan. Nothing changed on our end re finances, debts, job, etc. They said our debt to income ratio was suddenly too high even though they approved us for almost double the loan. I asked the guy what numbers they were using and both my realtor and I ran them separately and came in about 39% debt to income after the mortgage. USAA claimed I was at 51! We asked the guy 3 times to review the numbers or explain how the got 51, but the guy just stonewalled us and said they were protecting their members, including me from unnecessary risk. He kept asking me why I didn't go for a VA loan and I kept telling him the property didn't qualify. Well becuase it's a HUD foreclosure, the gov wasn't interested in a contract extension and you can't get a mortgage in 1 week. So, no house. My 4 little girls cried for days and our family got screwed with no real explaination. Way to.take care of your members. I'm looking for a new bank now.


Seraiah, thank you for taking the time to post in our community. This sounds like a frustrating and disappointing situation. We value your feedback and want to ensure these concerns are appropriately addressed. I am engaging a team of specialists to review your concerns and follow-up with you. We appreciate the opportunity to address your concerns. -Meredith