USAA Home Equity Loan and HELOC Alternatives
USAA no longer offers home loans or lines of credit. However, other lenders can provide a number of good alternatives for military members and their families.
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The United Services Automobile Association, commonly known as USAA, has been providing low-cost loans, insurance products, and other banking services to members of the United States military, veterans, and their family members since 1922.
The company used to offer a full line of home equity products, including HELOCs and home equity loans, but those products have been discontinued.
Fortunately, other financial services companies and online lenders offer competitive rates. If you’re a USAA member and need to access the equity in your home now, consider one of the alternatives below.
On this page:
- USAA Home Equity Loan Alternative
- USAA HELOC Alternative
- HELOCs vs Home Equity Loans: How Do I Decide?
USAA Home Equity Loan Alternative
Compare USAA Alternatives
- Home Equity Loans between $20,000 – $500,000
- Low fixed rates
- Borrow up to 90% of your home’s value
- HELOCs between $15,000 – $150,000
- Apply completely online in minutes
- Fast access to your equity
A home equity loan uses the equity you’ve built up in your home as collateral for a loan. These can be used for everything from home improvement projects to vacations, debt consolidation, and much more.
Home equity loans typically have lower interest rates and better terms than personal loans. You can use our guide to compare the best home equity loans or read on to learn about one of our top choices Spring EQ.
Spring EQ
Rates (APR)
As low as 5.205%
Loan Amounts
$20,000 – $500,000
Minimum Credit Score
640
Spring EQ is a highly rated home equity loan lender with loans up to $500,000. Borrowers can receive an instant qualification that allows them to know the details of their loan before spending time on the application. Loan funds can be available in as few as 11 days.
- Maximum loan-to-value: 90%
- Origination fee: $700 – $2,000
- Repayment terms: 5 – 30 years
USAA HELOC Alternative
A HELOC, or home equity line of credit, operates much like a home equity loan in that it uses your home’s value as collateral. Where it differs is in its setup.
With a HELOC, you can withdraw proceeds and pay it back many times over during the draw period, similar to using and repaying the money with a credit card. After that period the line of credit changes to repayment status, in which you continue to make regular payments but can no longer withdraw.
Many lenders offer HELOC products, so you should consult our list of the best home equity lines of credit to find the most competitive rates or read on to learn more about one of your options.
Figure
Rates (APR)
4.99% – 13.25%
Loan Amounts
$15,000 – $150,000
Minimum Credit Score
620
Figure is an online lender offering home equity lines of credit to borrowers in need of financing. You can pre-qualify without any effect on your credit score. The online application can be completed within minutes and funds can be received in 5 days.
- Rate reduction: 0.75% automatic payment discount
- Maximum loan-to-value: 80%
- Draw term length: 5 years
- Origination fee: Can go 0% – 4.99%
- Repayment terms: 5, 10, 15, or 30 years
HELOCs vs. Home Equity Loans: How Do I Decide?
Home equity products each come with their own pros and cons.
A HELOC may be more advantageous if you’re doing an ongoing home improvement project and want to ensure that you have funds available for extras that pop up during the project. This way, you won’t have to withdraw funds until you actually need them. It also allows you to make a smaller monthly payment during the draw period, which can help you save money upfront while postponing the major payments until later.
“We have used multiple HELOCs on our rental real estate properties and have been very happy with their ease of use and relatively low rates and fees compared to having to do a cash-out refi every time we needed to tap money from our real estate,” said Scott, a long-time real estate investor and the blogger behind the popular blog Costa Rica Fire. “We picked a HELOC over a home equity loan because we wanted the flexibility to borrow as much or as little as we needed at various times, as opposed to needing a specific amount of money at any one time.”
Scott from Costa Rica Fire
With a home equity loan, you’ll have a fixed, predictable payment that you can budget for while getting one lump sum of funds for your needs right away. This is advantageous if you’re using the funds for a one-time expense.
In the comparison below, you can see the difference between two lenders offering different home equity products.
| | |
|---|---|---|
| Product | Home equity loan | HELOC |
| Rates (APR) | As low as 5.205% | 4.99% – 13.25% |
| Loan Amounts | $20,000 – $500,000 | $15,000 – $150,000 |
| Eligibility Requirements | Minimum credit score: 640 Maximum loan-to-value: 90% | Minimum credit score: 620 Maximum loan-to-value: 80% |
Bottom Line: Find the USAA Home Equity Alternative That Works for You
Choosing a home equity product is a big decision; after all, you’re putting your home up as collateral. Before making any financial decisions, make sure to look at several different lenders, compare rates and terms, and understand how the payments will fit into your current financial situation.