Business Insider's personal finance team compared Freedom Mortgage to the best mortgage lenders and found it to be in need of improvement when it comes to trustworthiness and customer satisfaction.
Freedom Mortgage may be a good option for government-backed mortgages, because it allows lower credit scores than most lenders. However, it ranks low in customer satisfaction and has had several controversies in recent years.
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Rocket Mortgage -
AmeriSave Mortgage Corporation Mortgages
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New American Funding
620
3%
Conforming, jumbo, FHA, VA, USDA, refinance
- Allows lower credit scores for FHA and VA mortgages than most lenders
- No home equity loans, HELOCs, reverse mortgages, or construction loans
- Ranks low in customer satisfaction and trustworthines
- High average fees
- Offers mortgages in all 50 US states, Puerto Rico, and US Virgin Islands
- Minimum down payment and credit score displayed are for conforming mortgages
Understanding Freedom Mortgage
Freedom Mortgage Lends Nationwide
Freedom Mortgage offers home loans in all 50 states, as well as Puerto Rico and the U.S. Virgin Islands.
Freedom Mortgage Loan Options
Freedom Mortgage provides the following types of mortgages:
To get a loan from Freedom Mortgage, you can complete an application online or get started over the phone.
Freedom Mortgage Interest Rates and Fees
According to our review of Home Mortgage Disclosure Act data, Freedom Mortgage's mortgage rates are around average compared to other lenders.
Freedom Mortgage doesn't show any current rates online. You'll need to fill out an online form and provide contact information to get a rate quote.
In 2023, the average borrower getting a conventional mortgage with Freedom Mortgage paid $6,019 in origination charges. This is high compared to other lenders.
Freedom Mortgage Overall Lender Rating
Loan Types: 3 out of 5
Freedom's mortgage offerings are pretty basic. While most borrowers should be able to find the mortgage they're looking for with this lender, it doesn't offer any more niche types of loans or home equity options.
Affordability: 3 out of 5
Freedom Mortgage earns points in affordability for allowing relatively low credit scores on its FHA and VA loans. But its average fees are on the high end.
Customer Satisfaction: 3.41 out of 5
In the J.D. Power 2024 Mortgage Origination Satisfaction Study, Freedom Mortgage ranked below the industry average.
On its Zillow lender profile, Freedom Mortgage has a 4.81 out of 5 stars, based on nearly 1,900 customer reviews. But more recent reviews on Zillow tend to be negative.
Trustworthiness: 3 out of 5
The Better Business Bureau gives Freedom Mortgage a B rating. Freedom Mortgage has been the subject of multiple government actions.
In October 2023, the Consumer Financial Protection Bureau announced it was suing the lender, saying that Freedom Mortgage provided false Home Mortgage Disclosure Act data — specifically about applicants' race and ethnicity. Freedom was ordered to pay a $3.95 million civil money penalty.
In August 2023, the CFPB claimed that Freedom Mortgage gave illegal kickbacks to real estate brokers who recommended the lender to borrowers. The CFPB ordered that the lender stop these activities and pay $1.75 to the CFPB's victim relief fund.
In July 2023, Freedom Mortgage agreed to a $502,000 settlement when facing allegations from the Attorney General of New Jersey, Matthew J. Platkin, and the Division of Consumer Affairs. The Division claimed the lender violated several New Jersey regulations by making unsolicited marketing calls, not responding to customers' questions with correct information, using bait-and-switch tactics to convince people to refinance, and more.
Freedom Mortgage Pros and Cons
Pros
- Allows 550 credit scores for FHA and VA mortgages
Low Credit Score Requirements for FHA and VA Borrowers
Freedom Mortgage's minimum credit score requirements for its FHA and VA loans are relatively low compared to other mortgage lenders. Many lenders require a minimum 580 score for FHA loans, while VA loans often require a score of at least 620.
With Freedom, you could potentially qualify for one of these mortgages with a score as low as 550. However, to get an FHA loan with a score below 580, you'll need to make a down payment of at least 10%, regardless of what lender you're working with.
Cons
- Loan offerings are limited
- Ranks low in J.D. Power's 2024 Primary Mortgage Origination Satisfaction Study
- Several government actions filed against the business
- Average fees are on the high end
Limited loan offerings
If you're looking for a niche type of mortgage, Freedom Mortgage likely isn't the right choice for you. But for most borrowers getting a conventional or government-backed mortgage, this lender should have what you need.
What Borrowers Are Saying About Freedom Mortgage
Business Insider looked at positive and negative customer reviews, online forums, BBB complaints, and other sources to understand what borrowers think about Freedom Mortgage's process.
Recent Reviews Suggest Borrowers Have Issues With Freedom Mortgage
Freedom has both positive and negative customer reviews online, but many of the more recent reviews are negative. In the comments and reviews we looked at, many borrowers noted that they had a rocky experience with poor communication from the lender.
Negative online reviews don't necessarily mean you'll have a bad experience with a company. If you're interested in a lender but bad reviews are giving you pause, you can always obtain preapproval and talk with a loan officer to get a sense of how company representatives interact with customers.
How Freedom Mortgage Compares
Freedom Mortgage vs. Rocket Mortgage
Rocket Mortgage ranks high in customer satisfaction and has a specialty 1% down mortgage product for low-to-middle income borrowers called the ONE+ mortgage. It's also the top pick in Business Insider's guide to the best mortgage refinance lenders.
But Freedom accepts lower scores than Rocket. And unlike Freedom, Rocket Mortgage doesn't have USDA loans.
Freedom Mortgage vs. Fairway Independent Mortgage Corporation
Like Rocket Mortgage, Fairway Independent Mortgage Corporation is another great choice if you value customer service. Fairway ranked high in J.D. Power's 2024 origination study. It also has a wider variety of loan options than Freedom, including reverse mortgages, renovation loans, and physician loans.
Fairway Independent Mortgage Corporation
Freedom Mortgage FAQs
Freedom Mortgage's rates are around average compared to other mortgage lenders, according to HMDA data.
Freedom Mortgage may not offer as good of a customer service experience as other lenders. We found that Freedom had an unusual amount of negative online customer reviews. But this doesn't necessarily mean you'll have a bad experience with this lender.
Freedom Mortgage offers VA loans, but it doesn't have any more niche types of loans, like reverse mortgages or construction loans.
Freedom Mortgage may be easier to qualify with than some other lenders since it allows lower credit scores on its FHA and VA loans.
Stanley C. Middleman founded Freedom Mortgage in 1990, and he currently acts as CEO.
Why You Should Trust Us: How We Reviewed Freedom Mortgage
To evaluate Freedom Mortgage, we used our methodology for reviewing mortgage lenders.
We look at four factors — loan types, affordability, customer satisfaction, and trustworthiness — and give each a rating between 1 and 5, then average these individual ratings for the overall lender rating. Lenders get higher ratings if they offer a high number of loan types with affordable features, have positive customer reviews, and don't have any recent public controversies.
