Compare the mortgages offered by Freedom Mortgage
When it comes to buying a home, the mortgage process can be confusing and intimidating. It’s important to find a mortgage company you can work with and trust, and will help you understand the process and complicated documents.
Freedom Mortgage claims to provide support, starting with the application process right up until the closing. It aims to make the mortgage application process run smoothly with a team of loan officers who are there to help. It offers a choice of fixed- and adjustable-rate mortgages, as well as a range of online calculators and resources to help you understand your borrowing requirements.
|Description||A lender that excels in FHA and VA loans, offering low down payment options to borrowers.|
Purchase, Refinance, Jumbo, Fixed, Adjustable, FHA, VA
|Minimum down payment||3%|
Do I qualify for a loan with Freedom Mortgage?
To qualify for a conventional loan with Freedom Mortgage, you’ll need a minimum credit score of 620. For an FHA loan, you’ll need a credit score of at least 500.
You’ll also need to make a down payment of at least 3%.
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What can I expect with a Freedom Mortgage mortgage?
Here are a few of the features this provider has to offer:
- Maximum loans. While Freedom Mortgage doesn’t disclose maximum jumbo loan amounts on its site, most jumbo loans top out at $2 million.
- Prequalification. Start the prequalification process on Freedom Mortgage’s site by filling out its secure online form with information about the property you’re interested in purchasing.
- Debt-to-income ratio. To qualify for a conventional loan with Freedom Mortgage, you’ll need a debt-to-income ratio of no more than 45%.
Are there any special programs?
You may qualify for one of Freedom Mortgage’s special programs or discounts:
- FHA loan. Insured by the US Government’s Federal Housing Administration (FHA), these loans are for poor credit and low-income buyers. Qualify with a credit score of 500 or higher to get a loan with a down payment as low as 3.5%.
- VA loan. If you or your spouse are active or retired members of the military, you won’t be required to make a down payment or pay private mortgage insurance (PMI) and you won’t be penalized for early loan repayment.
- USDA loan. If the property you’d like to purchase resides in a qualifying rural area, you may be eligible for this type of home loan, which offers low interest rates and no required down payment.
- Purchase Promise. For preexisting customers, Freedom Mortgage offers its Purchase Promise guarantee. If it’s unable to match a competitors interest rate, you’ll receive a $250 gift card. If the closing of your loan is delayed, you’ll receive a $1,000 gift card.
Pros and cons
- Variety of loans. Freedom offers loans to reach a wide range of borrowers, helping more people become homeowners.
- Refinancing options. If you want a lower interest rate or you need cash to manage day-to-day expenses, Freedom Mortgage offers loan refinancing options to suit your needs.
- Fast application process. They make the loan process quick and easy to apply for a loan online.
- Branch access. Freedom Mortgage has retail locations in more than 15 states. If you prefer to manage your home loan face to face, check to be sure there’s a location near you.
- Negative reviews. Although the BBB gives it an A rating, the customer comments tell a different story. Over 80% of the comments are negative, citing complaints of customer service, over charging, among other things.
How do I get preapproved?
If you think Freedom Mortgage has the loan for you, visit its website and click Apply Now or call a customer service representative. Whether you’re purchasing a property or refinancing a loan, be ready to provide:
- Your name
- The state where you want to buy property
- Your email and your phone number
Keep in mind that special eligibility requirements apply to different types of loans, including a minimum down payment limit and ties to the military if you apply for a VA Loan.
To be eligible for a loan with Freedom Mortgage, you must meet the following criteria:
- Minimum personal credit score of 620.
- Minimum 3% down payment.
Once you complete your application, you’ll need to provide personal information, including:
- Your name, date of birth, residential address and Social Security number.
- Employment information for the past two years.
- Your most recent pay stubs.
- W-2 or 1099 forms for the past two years.
- Federal tax returns for the last two years.
- Self-employed borrowers will need to provide two years of personal and business tax returns as well as a year-to-date profit and loss statement with balance sheet.
- Details of your assets and debts.
I got the loan. Now what?
Keep your loan repayment on track with the following tips:
- Sign up for autopay. Set up recurring payments by logging into your account on Freedom Mortgage’s website.
- Contact Freedom Mortgage. Should you have any question about your loan, call 855-690-5900 from Monday to Friday, 8 a.m. to 10 p.m. and Saturdays from 9 a.m. to 6 p.m. EST.
Case study: Adrienne’s experience with Freedom mortgage
I applied for a mortgage in May 2015 with a broker, and within a week it was sold to Freedom Mortgage. I put 5% down and took out an FHA loan, so perhaps my loan was considered high risk enough to sell. I can’t comment on the application process through Freedom, but I can comment on my experience since then.
I like that Freedom is a straightforward mortgage company, and I can get a human on the phone if I need one. However, I prefer to not speak with reps if I don’t have to, and the Freedom website is pretty old. It took me a while to figure out how to navigate it, and setting up automatic payments took a few tries. The Statements area does make it easy to find the escrow and tax forms I need.
I don’t like how many cashout offers I get from Freedom — at least once a week, I get a letter asking me to take out a loan against my equity. Even after opting out, I get them relentlessly.
Overall, I’m satisfied with Freedom mortgage. But I don’t have another mortgage experience to compare it to. In the future, I’ll probably prioritize interest rates over any other feature of a mortgage.
Freedom Mortgage offers loans to reach all kinds of borrowers. Anytime you take out a loan, be sure you read the fine print and fully understand the loan details. Do your research and compare your loan options before deciding on a lender.