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Freedom Mortgage Review [2021]: Is It Your Path to Homeownership?

Veteran Home Loans: How They Work and Who is Eligible

Choosing which lender to go with when buying or refinancing a home is a big decision you shouldn’t take lightly. But how do you know if a lender is right for you? And are they all legit?

In this Freedom Mortgage review, you’ll learn about how this company works, including what loan types it offers and what the customer experience is like. This can help you decide if Freedom Mortgage is a good option for you.

In this Freedom Mortgage review:

  • An overview of Freedom Mortgage
  • Which loan products does Freedom Mortgage offer?
  • What makes Freedom Mortgage different
  • What Freedom Mortgage customers are saying
  • FAQs about Freedom Mortgage
  • Bottom line on Freedom Mortgage

An overview of Freedom Mortgage

Freedom Mortgage Corporation was founded in 1990 by Stanley C. Middleman, who remains the company’s president and CEO today. It’s headquartered in Mount Laurel, New Jersey, and licensed in all 50 U.S. states, as well as Puerto Rico and the U.S. Virgin Islands. Freedom Mortgage is also a member of the Mortgage Bankers Association and the National Association of Mortgage Brokers.

Freedom’s mission focuses on helping Americans achieve homeownership and financial betterment. To date, it has helped millions of Americans achieve these goals through its variety of offerings, including FHA loans, VA loans, USDA loans, and conventional loans. Since it provides so many different options, Freedom Mortgage’s customer base could range from first-time homebuyers to experienced homeowners.

Which loan products does Freedom Mortgage offer?

Freedom Mortgage offers a few different products, including both buying and refinancing options. If you’re interested in buying a home, Freedom Mortgage provides these home loan choices:

  • FHA loans
  • VA loans
  • USDA loans
  • Conventional loans

FHA, VA, and USDA loans are all considered government-backed loans because different government agencies insure them. FHA loans are insured by the Federal Housing Administration, VA loans are insured by the Department of Veterans Affairs, and USDA loans are insured by the U.S. Department of Agriculture.

Conventional loans are insured by private lenders instead of a government agency. This generally means they have stricter eligibility requirements, including a higher credit score or lower debt-to-income ratio. But conventional loans might not have as many restrictions as government-backed loans, which could make them more accessible. For instance, you don’t necessarily need to be a military member or buy a home in an eligible rural area, as you would with a VA or USDA loan.

If you’re already a homeowner with an FHA or VA loan, Freedom Mortgage offers a few refinancing options. This includes:

  • FHA refinance
  • VA cash-out refinance
  • VA interest rate reduction refinance loan (IRRRL) refinance

In addition to several loan options, Freedom Mortgage also offers educational materials on its website. These can be helpful if you’re learning how to get a loan and which one to choose, or how refinancing works.

FHA loan at Freedom Mortgage

FHA loans are insured by the Federal Housing Agency and provided by private lenders. Any qualified homebuyer could be eligible for these loans, meaning you don’t need to be a military member or purchase a home in a qualifying area.

FHA loans are often recommended for first-time homebuyers because you don’t need an excellent credit score to qualify, though having a high credit score could qualify you for a better interest rate. The down payment requirement could be as low as 3.5% of the home’s price. This could be helpful if you’re saving for a down payment but haven’t quite reached the recommended goal of 20%.

You also typically get a reasonable loan amount, though you have to be aware of closing costs, which generally include title fees, origination fees, attorney fees, and other expenses. Closing costs for FHA loans are usually 3%-4% of the home price, but the actual amount may vary by lender.

With an FHA loan, you’ll also need to pay an upfront mortgage insurance premium (MIP) of 1.75% of the purchase price and monthly insurance premiums, which will add up to 0.45% to 1.05% of your total loan amount each year. The amount you’ll pay for your monthly premiums will vary based on your loan term, down payment amount, and total mortgage.

Other considerations include having an acceptable debt-to-income ratio, having a steady income, being a U.S. citizen, your proposed home meeting FHA property requirements, and making the home your primary residence.

Loan amount Up to $356,362 to $822,375, depending on where you live
Loan term Up to 30 years
APR Varies based on credit score
Credit needed 600+

VA loan at Freedom Mortgage

VA loans are offered by private lenders, such as Freedom Mortgage, and insured by the Department of Veterans Affairs. Only military veterans, active-duty military members, and surviving spouses are eligible for VA loans. If you fall into one of these categories, you may still be required to get a certificate of eligibility (COE) to prove that you could qualify for a VA loan.

Freedom Mortgage offers VA loans to borrowers who meet the eligibility requirements and have a credit score of 600 or above. These mortgage loans don’t often have income requirements, but your debt-to-income ratio may need to be 41% or lower. If you opt for a VA loan, you’ll likely need to pay a VA funding fee at closing. But qualified individuals can put down as little as 0% for a down payment.

Loan amount No declared maximum limit, but can vary based on creditworthiness
Loan term Up to 30 years
APR Varies based on credit score
Credit needed 600+

USDA loan at Freedom Mortgage

USDA loans are offered by private lenders and backed by the U.S. Department of Agriculture. Only eligible rural or suburban homes can qualify for a USDA loan, and the home you’re purchasing must be your primary residence. Eligible homes are typically in areas away from big cities.

If you qualify for a USDA loan, you might be able to purchase a home with a 0% down payment. Though, you’ll be required to pay an upfront fee of 1% of the initial loan amount, as well as an annual fee of 0.35% of the remaining loan amount. The 0.35% annual fee is generally factored into your monthly payments, so you’ll pay a portion of it each month.

Closing costs for USDA loans are often between 2%-5% of the home’s purchase price. These types of loans also have income limitations, which you can review on the USDA website.

Loan amount Varies based on state, county, and income
Loan term Up to 30 years
APR Fixed rate, varies based on credit score
Credit needed 640+

Conventional loans at Freedom Mortgage

Conventional loans are both offered and backed by private lenders rather than insured by a government agency. These loans have some important differences from government-backed loans.

For instance, the home you’re buying doesn’t have to be your primary residence. These loans generally require a down payment, which could be as low as 3%, depending on your situation. You’re usually required to pay private mortgage insurance with a conventional mortgage unless you make at least a 20% down payment.

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Conventional loans don’t necessarily have high credit score requirements, but excellent credit could qualify you for a better rate. The average closing costs are between 2% and 5% of the purchase price, though this amount can vary by lender.

Loan amount Maximum 2021 limit of $548,250, unless you get a jumbo loan
Loan term Up to 30 years
APR Varies based on credit score
Credit needed 620+

Refinancing a mortgage with Freedom Mortgage

If you already own a home and have a home loan, you might consider refinancing your loan to get a better term or rate. Freedom Mortgage offers three refinancing options:

  • FHA streamline refinance: The goal for this refinance is to replace your current FHA loan with a new FHA loan with a better interest rate, which could end up saving you money over time. Average closing costs are typically between 2%-5% of the loan amount, and you’ll have to pay annual mortgage insurance premiums. These costs could potentially be rolled into the new loan.
  • VA cash-out refinance: If you have an existing home loan (doesn’t need to be a VA loan) and equity in your home, you might want to do a VA cash-out refinance to tap into your home’s equity and pay off debt or other expenses. The funding fee is typically 2.3%-3.6% of the loan amount, and you might be able to finance up to 100% of your home’s value. Closing costs and funding fees could be rolled into the new loan.
  • VA IRRRL refinance: Like an FHA streamline refinance, this type of refinance is for if you already have a VA loan and want to lower your rate with a new VA loan. The average closing costs are between 1%-3% of the loan amount, and the funding fee is 0.5% of the loan amount. You don’t need to do another credit check unless your monthly mortgage payment increases by 20% or more if you currently have a VA loan with Freedom Mortgage.

What makes Freedom Mortgage different

Freedom Mortgage has various loans for you to choose from, while other lenders might not offer as many options. This is helpful because having options could help ensure you find the best product for your needs.

Also, Freedom Mortgage advertises other ways to make your experience better. This includes a low-rate guarantee for meeting a competitor’s rate or giving you $250 if they can’t.

In addition, Freedom Mortgage offers its Eagle Eye Program that could help you reach your financial goals. For example, Freedom Mortgage might contact you if interest rates drop and your monthly payment could be potentially lowered.

It’s worth noting that Freedom Mortgage also allows you to create an online account for easy access to important loan information. This includes checking your loan status, accessing escrow information, and setting up automatic payments for your mortgage.

What Freedom Mortgage customers are saying

Freedom Mortgage has decent ratings across different online review sites. This includes an A+ rating with the Better Business Bureau (BBB) and a 3.84 out of 5.0-star rating based on over 2,300 customer reviews. Its TrustPilot rating is 2.3 out of 5.0 stars, which is considered “poor,” falls short, but it’s a small pool of only 22 reviews.

Overall, Freedom Mortgage customers are generally happy with its easy and efficient application process. However, many bad reviews mention poor customer service or the process being pushed back multiple times.

FAQs about Freedom Mortgage

Is Freedom Mortgage a good company?

Freedom Mortgage is a leading FHA and VA lender in the U.S. and is licensed to work in all 50 states. Individual experiences may vary, but this mortgage company has relatively good reviews and is a legit lender for buying or refinancing home loans.

What do you need to apply for a loan with Freedom Mortgage?

The application and underwriting requirements will vary depending on the loan you’re applying for. But you typically need to go through a credit check, provide your Social Security number, pay stubs, or W-2 forms. For VA loans, you may have to provide a certificate of eligibility that proves you meet certain requirements for this type of loan.

How much are closing costs with Freedom Mortgage?

Closing costs will likely be different, depending on the loan you qualify for. For example, the average closing costs for an FHA loan are 3%-4% of the purchase price. But for a USDA loan, the average is 2%-5% of the purchase price. These amounts may also vary slightly depending on your situation.

What is the minimum credit score for Freedom Mortgage?

The minimum required credit score for Freedom Mortgage is typically around 600. However, a higher credit score might qualify you for a lower interest rate or lower down payment requirement.

How do you contact Freedom Mortgage?

If you want to apply for a new loan or check the status of a loan application with Freedom Mortgage, call 855-342-9761. If you’re borrowing on an existing loan and want to contact a loan officer, call 855-690-5900.

New customers can also fill out a form on and then receive a phone call or email from the company about the kind of loan they’re interested in.

Bottom line on Freedom Mortgage

Freedom Mortgage has helped millions of people achieve the dream of homeownership and other financial goals. If you’re interested in buying or refinancing a home, Freedom Mortgage has multiple options for you, whether it’s your first mortgage or you’ve been through the process before.

But don’t forget to check around from different lenders to see what options are available. Comparing loans from the best mortgage lenders may be a good way to find an affordable mortgage that works for you.

Disclaimer: All rates and fees are accurate as of Aug. 6, 2021.

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Mortgages Demystified: Your Questions Answered and Home Loan Terms Defined