Freedom Mortgage Review 2023 | US News

[ad_1]

Compare Top Mortgage Lenders

Min. Down Payment
Min. Credit Score
Min. Down Payment
Min. Credit Score
Min. Down Payment
Min. Credit Score

Freedom Mortgage provides several types of mortgage loans, including:

  • Conventional.
  • Refinance.
  • Federal Housing Administration.
  • Department of Veterans Affairs.
  • U.S. Department of Agriculture.

Interested borrowers may start by prequalifying on the Freedom Mortgage website, which involves basic questions and a soft credit check. If you prefer to move forward in the application process, one of its loan advisors can help you complete the mortgage application over the phone. There is no online option for the application.

Once you submit your application, Freedom Mortgage will email you a login link to review and sign all the necessary documents. It will also typically ask you to verify the information on your mortgage application by providing copies of records, such as bank statements, W-2s and more. Most customers can securely upload their records using the electronic platform.

Closing must be done in person, but Freedom Mortgage may be able to come to you.

Freedom Mortgage offers loans for primary homes, second/vacation homes and investment properties. Freedom Mortgage typically charges between 2% and 5% of your home’s purchase price in closing fees for a conventional loan. These include an application fee, appraisal fee, credit report fee, origination fee, title search fee and other fees that vary depending on locality.

FHA loan closing costs average between 3% and 4% of the purchase price of the home. You will pay an upfront mortgage insurance premium as part of your FHA closing costs, which is equal to 1.75% of the base loan amount.

Closing costs for a VA loan can range between 2% and 5% of the home’s price. These closing costs typically include the VA funding fee, though this fee can often be added to your mortgage balance.

For primary homes, the down payment can be as low as 3.5% for FHA loans, while VA loans may qualify for 100% financing. For second homes, the down payment can be as low as 10%. Investment properties usually require a down payment of 20% or more.

Although Freedom Mortgage doesn’t offer discounts for new customers, it does offer several programs for current mortgage customers looking for their next home, such as competitor match and closing date guarantee.

Also, Freedom Mortgage states it will reach out to you after closing if:

  • Rates drop and you might be able to lower your monthly payment.
  • The value of your home increases and it can help give you access to more cash.
  • It has a special program or opportunity that may be of interest to you.

You can qualify for a Freedom Mortgage loan if you have fair credit because the lender offers FHA, VA and USDA loans that set lower minimum credit scores than conventional mortgages.

Qualifying for a Freedom Mortgage loan includes proving you are a U.S. citizen with a steady income and established credit. The lender will review your debt-to-income ratio and request your Social Security number, pay stubs, W-2s and bank statements.

Ultimately, qualifying for a mortgage from Freedom Mortgage is about proving you have the means to pay back what it lends to you. The rate you’re offered depends on many factors. This can include whether you want to buy a home, refinance an existing mortgage or get cash from your home’s equity. Your credit score, income and general financial situation, as well as the current mortgage market, will also be considered.

Freedom Mortgage does not disclose one minimum credit score for all of its loans, but says it often requires:

  • A minimum credit score of 620 to buy a house with a conventional loan.
  • A minimum credit score of 550 to buy a house with a VA loan or an FHA loan.
  • A minimum credit score of 640 to buy a house with a USDA loan.

Freedom Mortgage is licensed in all 50 states, the District of Columbia, U.S. Virgin Islands and Puerto Rico.

Freedom Mortgage has been accredited with the Better Business Bureau since 2001 and has an A+ rating. TrustPilot gives Freedom Mortgage a bad rating of 1.3 out of 5 stars, based on more than 60 reviews.

In 2021, the Consumer Financial Protection Bureau fielded 779 complaints about Freedom Mortgage loans. The most common complaints involved trouble during the payment process and applying for a mortgage. The lender responded in a timely manner to all complaints; 778 closed with explanation, and one closed with nonmonetary relief.

On Sept. 15, 2020, Freedom Mortgage and the California Commissioner of Business Oversight reached a final settlement agreement that resolved accusations that the lender “failed to properly reconcile certain of its trust accounts, commingled operating funds with trust monies and caused debit balances to exist in borrower impound accounts.”

If you want to apply for a new loan or check the status of an application, call Freedom Mortgage customer service at 855-908-6295. A representative can be reached Monday through Thursday from 8 a.m. to 11 p.m. Eastern Time; Friday from 8 a.m. to 10 p.m. ET; and Saturday from 8 a.m. to 6 p.m. ET.

Freedom Mortgage allows customers to set up an online account and perform a number of tasks related to your loan. For instance, you can make payments and set up recurring payments. You can also access current mortgage and escrow information, see statements and other documents, sign up for paperless statements, contact customer service and more.

  • People who are interested in a government-backed mortgage loan, including FHA, VA or USDA.
  • People who want to get quickly prequalified for a mortgage online.
  • Residents of Puerto Rico and the U.S. Virgin Islands.

[ad_2]

Source link

Leave a Comment