USAlliance Financial Mortgage

USAlliance Financial Mortgage

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Written by Jennifer Schurman
Edited by Jana Lynch

About USAlliance Financial Mortgage

This profile has not been claimed by the company. See reviews below to learn more or submit your own review.

USAlliance Financial Mortgage (NMLS #562301) is a not-for-profit financial institution headquartered in Rye, New York. It offers conforming and jumbo conventional loans to borrowers in 47 states. In 2021, the organization originated $478.6 million in mortgage loans. You can apply online or in person at one of the credit union’s branches; you don’t need to be a member to apply.

Pros

  • Fast-track mortgages close in 25 days
  • 100% online application
  • Dedicated loan officer for assistance

Cons

  • No FHA, VA or USDA loans
  • Few in-person branches

Bottom Line

USAlliance is a full-service credit union that specializes in conventional loans. It offers 25-day (or sooner) closings, and it has options for first-time homebuyers and those with less-than-perfect credit.

Rates

USAlliance is generally transparent about its starting rates on its website. You can view these rates for all its loan types as of publishing.

For three years in a row, from 2019 to 2021, USAlliance had a higher average home purchase rate than the national average. In 2021, it was 0.84% higher.

One factor that affects rates is a borrower’s credit score. In general, borrowers with excellent credit (800 and above) and low debt-to-income ratios (DTI) are more likely to get the best rates available.

USAlliance offers both fixed-rate and adjustable-rate mortgages (ARMs). Fixed-rate mortgages provide stability because your monthly payments won’t fluctuate if rates rise over time, but an ARM could be useful if rates are currently high. ARMs usually have a low introductory rate for a few years, during which time you could save on interest before refinancing to a fixed rate later if rates fall. Consult with a loan advisor first to see which type of rate is best for your situation.

USAlliance Mortgage average home purchase rate vs. national average

YearDifference from national average
2021+0.84%
2020+0.98%
2019+1.21%
Information pulled from public Home Mortgage Disclosure Act data. Rates reflect noncommercial home purchase loans only.

Application process

You can start the application process online by visiting the credit union’s website and clicking “Apply Now.” If you aren’t a current USAlliance credit union member, you’ll need to create an account. The company uses Blend technology for its mortgage loan applications.

Once you have an account, you can complete the application 100% online. You’ll answer questions about the assets and real estate you currently own. USAlliance may also ask you to upload financial documentation to the portal, including pay stubs, W-2s and bank statements.

After submitting your application, a loan officer will reach out to finalize other details and give you a decision timeline. While you don’t need to be a member to apply, USAlliance does require borrowers to become members before closing.

USAlliance Mortgage application features

FeaturesAvailability
Online application
Mobile document upload
Physical branches4 states
Publishes minimum rate on website
Rate lockUp to 45 days
Pre-qualification (no hard credit pull)X
Certified approval letter

Loan types

USAlliance only offers conforming conventional and jumbo loans (no FHA, VA or USDA loans) with 10-, 15-, 20- and 30-year term options. The company also provides HELOC and home equity loans.

If you want to close quickly, USAlliance offers the FastTrack Mortgage, which can close within 25 days, but you’ll need to provide income and employment documentation upfront to help speed up the process.

From 2019 to 2021, USAlliance saw a decrease in the number of home purchase applications it received. In 2021, it received 566 purchase applications. Of these, it denied about 3% (18), and it closed loans for about 70%.

Loan applications for home purchases only by year

202120202019
Home purchase applications566658735
Home purchase loans closed396457503
Home purchase applications denied184991
Home purchase preapprovals denied000
Information pulled from public Home Mortgage Disclosure Act data. Includes conventional, USDA, VA and FHA mortgages.

Refinancing

In 2020 and 2021, mortgage rates dropped to historic lows. At one point in early 2021, the average 30-year fixed rate was as low as 2.65%. Borrowers reacted by refinancing their existing mortgages so they could lock in lower rates.

Since 2021, rates have risen to 10-year highs. You may still consider refinancing if it can help you reach your long-term financial goals, though — for instance, you could have equity built up in your home and opt for a cash-out refinance to pay off high-interest debt, or you may be able to secure a lower rate today than your initial rate due to an increase in your credit score. You’ll want to consult with a loan advisor first to see what rates you could get.

A majority of the loans USAlliance originated in 2021 were for refinancing (with refinance loans and cash-out refinances combined). About 37% were for home purchase loans, down from 39% and 43% in prior years.

Home purchase vs. refinance loans by year

202120202019
Home purchase loans37.32%39.26%43.29%
Refinance loans16.68%20.36%13.86%
Cash-out refinance31.01%24.83%21.86%
Information pulled from public Home Mortgage Disclosure Act Data. Includes conventional, USDA, VA and FHA mortgages.

HELOC and home equity loans

USAlliance offers both HELOCs and home equity loans. These alternatives let you borrow up to 90% of your home’s value, with loan amounts ranging from $25,000 to $500,000 and terms up to 30 years. The HELOC has a 10-year draw period with a 20-year repayment period.

While a home equity loan has fixed rates, a HELOC’s rates can change over the loan term. There are also fees associated with a HELOC, including:

  • $300 processing fee if the borrower did not take an initial advance on the funds (initial advance is $25,000)
  • 0.5% to 2% of line amount in third-party fees when opening the account
  • $50 non-use charge if line of credit isn’t used in a 24-month period

Other fees may apply, so be sure to read over the fine print before you open a HELOC.

Requirements

USAlliance does not disclose the minimum credit score requirements for its conventional loans. Most likely, you’ll need a 620, but these minimums can vary by lender. Also, you’ll need to offer a 3% down payment, but remember that borrowers who put down less than 20% will need to pay private mortgage insurance premiums, which can affect your overall monthly payment.

Ultimately, you want to make sure you’re not purchasing more house than you can afford. You can use a mortgage calculator to get an estimate before you apply for a loan.

National mortgage requirements by type

Min. credit scoreMin. down paymentCompare with other lenders
ConventionalTypically 620Typically 3%Mortgage lenders

For information on other types of mortgages, read our guides on jumbo loans, VA loans, FHA loans and USDA loans.

Cost and fees

USAlliance does not disclose the fees it charges for loan originations. Many lenders charge an origination fee, which is usually between 0.5% to 1% of the loan amount. Other fees that may apply include application, processing and underwriting fees.

Lender fees are a portion of closing costs, which average around 2% to 5% of the loan amount. Closing costs include prepaid items, like private mortgage insurance premiums or real estate taxes, and third-party service fees, like real estate attorney’s charges or home appraisal fees.

You can expect to receive an estimate of closing costs (called the Loan Estimate) after you’re approved for the loan. Be sure to compare these numbers with the actual totals, which will be stated on the Closing Disclosures you receive three days before closing.

FAQ

How does USAlliance Mortgage work?

USAlliance exclusively offers conforming conventional and jumbo loans to borrowers in 47 states. You can apply for a USAlliance mortgage without being a credit union member, but you’ll need to become a member before you close on your loan. You can start the application process online or by visiting a credit union branch.

Is USAlliance Mortgage legit?

USAlliance is a legitimate lender federally insured by the National Credit Union Association. In 2021, the organization originated over $478.6 million in mortgage loans.

Where is USAlliance Mortgage available?

USAlliance mortgages are available in 47 states, not including Alaska, Hawaii and Texas. It operates branches in four states: Connecticut, Massachusetts, New Jersey and New York.

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ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. To learn more about the content on our site, visit our FAQ page.
  1. Federal Financial Institutions Examination Council, “HMDA Data Publication.” Accessed September 16, 2022.
  2. NMLS Consumer Access, “USAlliance Federal Credit Union.” Accessed September 16, 2022.
  3. OriginationData, “USAlliance Financial.” Accessed September 16, 2022.
  4. Federal Reserve Bank of St. Louis, “30-Year Fixed Rate Mortgage Average in the United States.” Accessed September 16, 2022.

USAlliance Financial Mortgage Company Information

Company Name:
USAlliance Financial Mortgage
Website:
www.usalliance.org