I wanted to purchase a condo in my current location for my primary residence. I Contacted USAA and received quotes for mortgage rates and terms. I then sold stock and otherwise liquidated investments to ensure I had sufficient assets in my USAA checking account to pay my down payment and closing costs. My wife and I answered every question and provided all the information that was requested in moving forward with our loan application. Our credit score was significantly above average and we had no outstanding debts or other liabilities. Additionally, we had enough in our asset disclosures to purchase the condo for cash if we had to.
After two months of USAA stringing us along, and days before we were scheduled to close, we were informed that our condo did not meet the requirements of Fannie Mae and Freddie Mac, so our loan was denied. The denial was based on a very simple issue that could have been resolved during our first conversations with USAA. Every other bank we conatcted after being denied by USAA, told us about the issue within our first few minutes on the phone simply based on our location. The issue was that one person owned more than 10% of the units in our condo complex. This is against the terms set by Fannie Mae and Freddie Mac, so USAA would not be able to sell our motgage to them, so we were denied.
Be aware that when you are dealing with USAA, you are ultimately dealing with Fannie Mae and Freddie Mac. So much for the concept of a credit union.
USAA sells their mortgages to Fannie Mae and Freddie Mac. USAA may pretend to be on the side of veterans and their families, but the bottom line is they only care about making money by selling mortgages to third parties.
AVOID USAA AT ALL COST WHEN BUYING A HOME. THEIR AGENTS ARE INCOMPETENT AND ALL THEY CARE ABOUT IS MAKING MONEY BY SELLING YOUR MORTGAGE TO FANNIE MAE OR FREDDIE MAC!
