Freedom Mortgage Review

06 May Freedom Mortgage Review

Rated as a top lender for providing VA home loans, Freedom Mortgage is a full-service mortgage provider, offering a wide selection of financial products. Operational in all 50 states, Washington DC, US Virgin Islands, and Puerto Rico, the lender provides services ranging from VA home loans, conventional mortgages, FHA loans, home equity line of credit, renovation loans, and VA refinancing loans.

About Freedom Mortgage

Freedom Mortgage is a Florida-based lending company that offers loans through wholesale, retail, and correspondent channels. When it comes to VA and Federal Housing Administration (FHA) loans, the lender has been rated number 1 in terms of services and streamlined loan application procedures.

The lender offers the following types of loans:

• Va loans
• Conventional
• Jumbo
• FHA
• VA Streamline Refinance
• VA Cash-Out
• Home equity line of credit
• Renovation
• Investment property
• Fixed-rate
• Adjustable-rate
• USDA

The website, however, does not provide online Freedom Mortgage rates right away. To get an online quote, you would have to fill out a form. The lender will then mail you the deals you qualify for.

Freedom Mortgage has been rated “A+” by the Better Business Bureau. However, it has also received a poor rating in the JD Power mortgage satisfaction survey 2021.

Related Article: Are Surviving Spouses Eligible for a Va Home Loan?

Freedom Mortgage Home Loan Types and Rates

The lender provides several mortgages, ranging from VA loans to conventional loans. The site, however, does not offer much transparency when it comes to interest rates and prequalification.

Here are some of the most common home loan types offered by Freedom Mortgage:

VA Loans

With over 30 years of experience, Freedom Mortgage helped around 266,000 people purchase their dream home in 2021, according to the data published on the website. The lender has also been rated as number 1 by Inside Mortgage Finance for VA home loans.

The lender offers three types of Freedom Mortgage VA loans- VA purchase loan, VA IRRRL and VA cash-out refinance loan. A VA purchase loan allows you to purchase your dream home without making any downpayment or paying for Private Mortgage Insurance (PMI).

VA Interest Rate Reduction Refinance Loan (IRRRL) or streamline refinance loan allows you to refinance an existing VA loan for lower interest rates. VA cash-out, on the other hand, refinances a VA or non-VA loan into a VA loan and also allows you to tap into your home’s equity to consolidate your debts.

As stated above, the lender does not offer online rates, including Freedom Mortgage VA rates. To get your quote, you would have to fill out a form.

Related Article: How Do I Get a Va Certificate of Eligibility?

FHA Loans

Rated as the number 1 lender for FHA loans by Inside Mortgage Finance, Freedom Mortgage’s FHA loan program helped customers buy and refinance more than 173,000 homes last year.

The lender’s FHA home purchase loan is available at a credit score of 600 and requires you to pay PMI. The loan comes with perks like lower monthly installments and competitive interest rates.

Freedom’s FHA streamlines refinance requires a lot less paperwork and features a smooth and streamlined application process. However, these loans can refinance only existing FHA loans.

Freedom’s FHA cash-out refinance comes with no funding fees or PMI requirements. Moreover, it lets you tap into your home’s equity and consolidate any existing debts.

USDA Loans

US Department of Agriculture (USDA) loans by Freedom Mortgage come with lower monthly installments, competitive interest rates, low mortgage fees, and easier refinancing with streamlined refinance.

Most USDA loans come with additional perks like no downpayment requirements and no loan limits. However, you must have a minimum credit score of 640 to qualify.

Related Article: Can Veterans Build a New Home With a Va Construction Loan?

Conventional Loans

According to Inside Mortgage Finance, the lender has been rated as one of the top ten residential lenders in the US. Freedom offers conventional purchase mortgages with competitive interest rates and flexible guidelines. Moreover, if you pay at least a 20% downpayment, you won’t be required to pay for PMI.

The lender also offers conventional refinancing options at competitive interest rates.

Freedom Mortgage Pros and Cons

Here are some pros and cons of Freedom Mortgage-

Pros of Freedom Mortgage

• It is a perfect option for first-time borrowers for VA loans, conventional mortgages, and FHA loans.
• The lender has around 100 brick-to-mortar branches all over the US.
• Unlike most lenders, Freedom offers home equity lines of credit and renovation loans.

Cons of Freedom Mortgage

• The site does not provide online rates, making it hard to prequalify for a loan amount.
• The lender does not offer home equity loans.
• The site provides only limited information.

Freedom Mortgage Application Process

Once you apply for a particular loan, the lender will send you login details through e-mail. You must log in to your account and e-sign all the related documents required to move your application forward.

The lender will require you to e-sign the following documents-

• E-consent, which would state your ability to receive and send all the documents electronically.
• Initial disclosure documents that would include the estimated loan amount and interest rates.
• Intend to proceed

The lender will send you all the documents required for initial underwriting. Once the underwriting is signed and approved by the lender, the lender will examine your loan application. It will assess your debt-to-income ratio, credit history, Freedom Mortgage credit score requirements, and other financial details to determine whether you meet the lender’s requirement or not.

Your home loan appraisal will also be conducted under this process.

After your application is approved, the lender will send you a closing disclosure, which will include the final details of your mortgage.

Freedom Mortgage Refinancing

Through Freedom Mortgage’s refinancing options, you can lower your monthly installments, shorten your loan term, lower your interest rate and save money on the interest. The lender offers four refinancing options:

• VA refinancing options like VA IRRRL and Cash-Out Freedom Mortgage Refinance loan
• Conventional refinance
• FHA streamline and cash-out refinance
• Freedom Mortgage refinance rates and remove PMI

Freedom Mortgage Alternatives

While Freedom Mortgage is the best in terms of convenience and credibility, it might not be the right fit for you, given that the lender does not provide online rates. In this case, you can go through its alternatives that can offer similar conveniences and added perks.

Here are some of the alternatives-

Carrington Mortgage Services

Carrington Mortgage Services offers no-to-low downpayment loan programs and customized rates to let you apply for the loan online. You would need to have a minimum credit score of 620 to qualify for most programs.

CrossCountry Mortgage

Known for fast loan closings, CrossCountry Mortgage provides a wide range of financial products, including home equity lines of credit. However, the rates are not stated on the website.

Stearns

While the interest rates offered by the lender are not posted on the website, Stearns Mortgage provides a wide variety of loans and mortgages to qualifying applicants. The lender, however, does not offer equity lines of credit.

Freedom Mortgage Transparency

While the interest rates are not posted online, you can sign up for the Eagle Eye Program to get alerts on reduced interest rates. In addition to this, you must fill out a form on the website to receive customized rates, which makes it hard for you to prequalify for a specific loan amount.