Freedom Mortgage Review

Freedom Mortgage is a competitive VA lender offering VA, FHA, USDA and conventional home purchase and refinance loans. Read on to learn more about Freedom Mortgage.
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freedom mortgage review

.Freedom Mortgage is one of the most competitive VA lenders on the market. 

The company was the top VA lender for all loans in 2021 and remains among the top five VA lenders for all VA loans so far in 2022, as well as the top five for VA cash-out and streamline (IRRRL) loans.

Table of Contents
  1.  About Freedom Mortgage 
  2. Products and Services 
    1. Freedom Mortgage VA Home Loans
    2. Other Freedom Mortgage Home Purchase Loans
  3. Freedom Mortgage Refinance Loans
    1. Streamline Refinance Options
    2. Cash Out Refinance Loan Options 
  4. Freedom Mortgage Pros and Cons 
    1. Mortgage Rates 

 About Freedom Mortgage 

Freedom Mortgage operates in all 50 states, Washington, D.C., Puerto Rico and the U.S. Virgin Islands, according to its website.

Founded in 1990, Freedom Mortgage offers a range of mortgages, including adjustable and fixed-rate conventional, FHA  and VA loans.

“We are committed to fostering homeownership at Freedom Mortgage, and the numbers show it,” Freedom Mortgage President Stanley Middleman said in a press release. 

“While we are proud of this designation, our focus has always been serving veterans and Americans who have very little or no down payment so they can buy their first home and experience the joy and rewards of homeownership. In fact, there’s no greater honor.”

More:

This Year’s Best VA Mortgage Lenders

Products and Services 

Freedom Mortgage offers conventional, FHA, VA and USDA loans for home purchase and refinance.

Freedom Mortgage VA Home Loans

According to its website, Freedom Mortgage offers the following VA home purchase loan products:

VA Home Purchase Loans

  • Veterans, active-duty, National Guard and reserve service members may qualify, as well as surviving spouses 
  • Competitive interest rates
  • 0% down payment requirement 
  • Minimum credit score as low as 550.

VA Streamline Refinance Loans 

  • Easy refinance option for borrowers with existing VA loans
  • Competitive interest rates
  • Hassle-free process with less paperwork and faster closings
  • East credit score qualifications.

VA Cash Out Refinance Loans

  • Get cash from the value of your home’s equity
  • Available to eligible borrowers with other VA or non-VA mortgages
  • Borrowers can finance up to 90% of their home’s value
  • Minimum credit score: 550

Other Freedom Mortgage Home Purchase Loans

Veterans don’t have to use a VA home loan to purchase a home. VA home loans have specific requirements that may not work for every veteran. Freedom Mortgage offers these options for veterans looking for another loan option. 

FHA Home Purchase Loan

  • Competitive interest rates
  • Low minimum down payment
  • Minimum 550 credit score
  • Requires mortgage insurance 

USDA Home Purchase Loan

  • Competitive interest rates
  • No down payment for many buyers
  • Low mortgage guarantee fees
  • Minimum credit score of 640
  • Property must be within an eligible rural or suburban community
  • Low closing costs at 2 – 5%

Conventional Home Purchase Loan 

  • Offered by financial institutions without backing from a government agency
  • No mortgage insurance with 205% down
  • Can use to purchase primary homes, vacation homes, rental homes, or investment properties

Freedom Mortgage Refinance Loans

Freedom Mortgage also offers several streamline and cash-out refinance loan products. 

Streamline Refinance Options

Freedom Mortgage offers VA, FHA and USDA streamline refinance loans, which allow borrowers to refinance their home quickly and easily, without a new appraisal or lengthy closing period.

Here’s what you need to know about each option.

VA “Streamline” Interest Rate Reduction Loans (IRRRL)

Freedom Mortgage offers VA “Streamline” Interest Rate Reduction Refinance Loans (IRRRL) for borrowers who want to refinance an existing VA loan to obtain a lower interest rate or monthly mortgage payment. 

Eligible borrowers can see how much they can lower their payment with Freedom Mortgage’s loan refinance calculator.

To qualify for a VA Streamline IRRRL: 

  • Refinancing must provide a “net tangible benefit” to borrowers, such as a lower interest rate, lower monthly payment or switching from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage. 
  • The veteran must have held the original loan for six months.
  • The borrower must pay refinancing costs, which may be 1-3% of the loan amount and a 0.5% funding fee.

VA IRRRLs take about 30 days to close, according to the VA’s lender handbook. There is no limit to the number of times a veteran can refinance a VA loan.

FHA Streamline Refinance Loans

Like the VA IRRRL program, FHA Streamline refinance loans are available to current FHA borrowers who would obtain a tangible benefit by refinancing. FHA Streamline refinance loans offer competitive interest rates and an easy loan qualification process. However, borrowers refinancing with an FHA Streamline mortgage must pay for mortgage insurance. 

USDA Streamline Refinance Loans

Freedom Mortgage also offers USDA Streamline refinance loans to borrowers with an existing USDA mortgage. USDA borrowers need a minimum 640 credit score to qualify for a USDA streamline refinance loan from Freedom Mortgage.

Cash Out Refinance Loan Options 

A cash-out loan allows borrowers to withdraw some of their home equity to spend or reinvest in other ways, such as home improvement or college education. 

A cash-out loan replaces a borrower’s existing loan with a higher loan amount. The withdrawn equity makes up the difference.

For example, suppose a veteran family’s original mortgage was for $250,000. They refinance into a $325,000 VA or FHA streamline refinance loan. They could take $75,000 cash from their equity to spend on other needs.

VA Cash Out Refinance Loans

  • Veterans can finance up to 90% of their home value using a VA cash-out loan 
  • Minimum credit score of 550
  • Mortgage insurance is not required
  • Requires 2.3-3.6% funding fee, unless eligible for a waiver

FHA Cash Out  Loans

  • Up to 80% loan-to-value ratio.
  • Minimum credit score of 550
  • Requires mortgage insurance 

Conventional Cash Out Loan

  • Consolidate other debt
  • Minimum credit score of 620
  • Up to 80% loan-to-value ratio
  • No funding fee, but may require m

Freedom Mortgage Pros and Cons 

Pros

  • Specializes in VA and FHA loans
  • Fair credit score requirements
  • Prequalification available
  • B+ Better Business Bureau rating
  • Online bill pay and account management

Cons

  • Borrowers can’t complete loan applications online
  • No home equity loans or lines of credit
  • Rates unavailable online
  • Existing customers may receive aggressive refinancing offers (Remember: cumulative refinancing fees should never offset mortgage savings).

Mortgage Rates 

In an email, a spokesperson for Freedom Mortgage said that the lender does not post rates online, citing daily interest rate fluctuations. Apply for a quote online or call Freedom Mortgage to ask a representative about mortgage interest rates. 

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About John W. Mitchell

John Mitchell is a contributing writer for The Military Wallet. He is a United States Navy veteran and a widely published freelance writer covering military affairs, health care, social services and craft beer through his firm, SnowPack Public Relations. He's also a novelist under the pen name of J. Willis Mitchell. His most recent novel, "Rotors" has just been published. His first novel "Medical Necessity" has a four-star rating on Amazon. Mitchell lives with his wife and writes on the western slope of Colorado. He volunteers each winter as an adaptive downhill ski instructor teaching the joy of the sport to kids, veterans and other skiers living with disabilities.

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