Looking for USAA Home Equity Rates?
Last updated: February 25, 2026
USAA discontinued home equity loans and HELOCs in 2020. Compare today's top-rated alternatives from lenders reviewed by our editorial team.
Home equity rates as low as 6.95% APR
Fed expected to cut rates mid-2026 — lock in now
What Happened to USAA Home Equity Loans?
USAA discontinued home equity loans and HELOCs in 2020 during the pandemic and has not reinstated them. While USAA remains a strong VA mortgage lender — ranked the 11th-largest VA lender by volume — they currently offer only purchase mortgages and cash-out refinancing.
For USAA members needing to access home equity, USAA suggests two alternatives: VA cash-out refinancing or personal loans up to $100,000. However, personal loans carry rates of 12%+ compared to home equity rates near 7%, and cash-out refinancing replaces your entire first mortgage — often at a higher rate than your current one.
Home equity rates avg 6.95% vs personal loans at 12%+ and credit cards at 20%+
Interest may be deductible on up to $750K of mortgage debt when used for home improvements
HELOCs auto-adjust downward when the Fed cuts rates — no need to refinance
Why act now?
The Fed has cut rates by 175 basis points since September 2024, pushing home equity rates to three-year lows. With inflation at 2.4% (lowest since April 2021) and 1–3 additional cuts expected in 2026, current rates represent a favorable entry point. Opening a HELOC now is particularly strategic — the variable rate adjusts downward automatically with each Fed cut, while locking in a fixed home equity loan near current levels protects against any reversal.
Sources: Federal Reserve FOMC minutes (Jan 2026), Goldman Sachs rate outlook, Bankrate rate data (Feb 25, 2026)
Frequently Asked Questions
Questions homebuyers ask before comparing rates
01 Does USAA offer home equity loans or HELOCs?
No. USAA discontinued home equity loans and home equity lines of credit (HELOCs) in 2020. They have not reinstated these products. USAA currently offers VA purchase mortgages, conventional mortgages, and cash-out refinancing. For members needing to access equity, USAA suggests cash-out refinancing or personal loans up to $100,000.
02 Why did USAA stop offering home equity products?
USAA paused home equity lending during the pandemic in 2020 and never resumed the program. The decision was part of broader banking adjustments during that period. While USAA remains the 11th-largest VA mortgage lender by volume, they have focused their lending portfolio on purchase mortgages and refinancing.
03 What are the best alternatives to USAA for home equity?
The top alternatives depend on your needs. For military members specifically, Navy Federal Credit Union offers home equity loans and HELOCs with no application fees, no origination fees, and up to 100% loan-to-value. For all borrowers, the lenders listed above are independently rated and offer competitive rates starting around 6.95% APR for home equity loans.
04 Is a home equity loan better than a cash-out refinance?
It depends on your current mortgage rate. A home equity loan keeps your existing first mortgage intact — ideal if you locked in a low rate before 2022. Cash-out refinancing replaces your entire mortgage, which often means a higher rate on the full balance. If your first mortgage is below 5%, a home equity loan as a second mortgage is typically the smarter choice.
05 What credit score do I need for a home equity loan?
Most lenders require a minimum credit score of 620–680. However, the best rates are typically reserved for borrowers with scores of 740 or higher. Some online lenders have more flexible requirements but may charge higher rates.
06 Should I get a HELOC or a fixed-rate home equity loan right now?
With the Fed expected to continue cutting rates through 2026, a HELOC can be strategic — its variable rate adjusts downward automatically with each Fed cut. Home equity loans offer rate certainty with fixed monthly payments. Many financial advisors suggest opening a HELOC now to benefit from future rate decreases, then potentially converting to a fixed-rate loan later if rates stabilize at a favorable level.
07 Is the interest on a home equity loan tax deductible?
Yes, home equity loan interest may be tax deductible if the funds are used to buy, build, or substantially improve your home. Under current tax law, you can deduct interest on up to $750,000 of total qualified mortgage debt. Consult a tax professional for your specific situation.
08 How quickly can I get a home equity loan?
The process typically takes 2–6 weeks from application to funding, including application, appraisal, underwriting, and closing. Some online lenders can close faster. Having your documents ready — recent pay stubs, tax returns, mortgage statement, and homeowners insurance — can accelerate the timeline.