What is Freedom's FHA denial rate in 2025?

Freedom's 2025 FHA denial rate is 24.2% in FRC's federal HMDA panel — ranked #5 of the 100 largest FHA lenders (lowest = #1). In 2018 it was 55.5%.

Is Freedom strict on FHA loans?

Denial rates partly reflect who applies, not only strictness. Freedom's rate has loosened 31.3pp since 2018. Overlays are lawful business decisions; this is a historical data observation, not a recommendation.

Is it hard to get approved with Freedom?

In 2025 Freedom denied 19.9% of the FHA mortgage applications it decided, approving 80.1%, across 41,095 applications. The median denial rate across the 100 largest FHA lenders was 13.8%, so its record is harder than most. A denial rate reflects who applies there as well as how the lender underwrites, and it does not predict the outcome of any individual application.

What is Freedom's mortgage approval rate?

80.1% of FHA applications that reached a credit decision at Freedom in 2025 were approved, computed from the complete CFPB HMDA record (originated plus approved-but-not-accepted, over all decisioned applications).

Why was my mortgage denied by Freedom?

The lender must give you the specific reasons in writing within 30 days under federal law. Denial reasons are distributed very differently between institutions, so the reason on your letter is worth comparing against that lender's own pattern and against its peers. A denial at one lender does not mean the same file would be denied elsewhere: in 2025 denial rates across the 100 largest FHA lenders ranged from 1.8% to 78.7%.

Freedom FHA Denial Rate (2025): the behavioral file

Direct answer · updated 2026-07-16

Freedom denied 24.2% of its FHA applications in 2025 — rank #5 of the 100 largest FHA lenders (1 = lowest denial), from CFPB HMDA loan-level records (1,187,606 decisioned FHA applications in 2025).

Sharpest observed DTI step: at CLTV 80-84, denial moves from 12.8% at DTI 45 to 23.2% at DTI 46 — a +10.4 point jump across one integer of DTI. FHA program rules permit DTI well above this; the desk does not.

Sharpest observed CLTV step: at DTI 43, denial moves from 5.4% in the 80-84% band to 96.1% in the 97+% band — +90.7 points on down payment alone.

Denial rates reflect applicant mix as well as underwriting strictness; overlays are lawful business decisions. Cells with n<50 excluded. Methodology

2025 FHA denial rate

24.2%

#5 of the 100 largest FHA lenders · loosened 31.3pp since 2018

2018 rate

55.5%

Shock Beta

100/100

Macro sensitivity (OFI)

65.9

Shock profile: high market sensitivity — this door moves when rates move. What Shock Beta means →

The black-hole cell

The single deepest denial zone in Freedom’s 2025 FHA record: DTI 46–48 × CLTV 100–105% → 96.8% denial (n=63). Files entering that coordinate historically did not come out. All lenders’ black holes, mapped →

Statistical relatives

Underwriting twins (similar decision patterns): Mr. Cooper (85/100), PennyMac (83/100). Behavioral opposites: UWM (67/100), Guild (63/100). If Freedom declined a file, its twins are statistically likely to read it the same way — the opposites are a different conversation. Full similarity engine →

Ground truth: Freedom decision coordinates (MDGB v1)

Of 17 verified coordinates for Freedom, 4 are points where the standard guideline answer ("FHA permits up to 57% DTI") materially misleads: the observed denial rate exceeds 50%. The sharpest: DTI 43 × CLTV 97+ → 96.1% denied.

DTI	CLTV band	Observed denial (2025)
43	97+	96.1%
47	97+	96.1%
49	97+	92.6%
44	97+	83.0%
47	85-89	28.9%
45	85-89	23.6%
49	85-89	15.1%
45	80-84	12.8%
47	80-84	10.3%
47	70-79	7.9%
45	70-79	7.6%
43	80-84	5.4%
49	80-84	5.3%
44	80-84	4.2%
49	70-79	3.3%
43	70-79	3.2%
44	70-79	3.2%

Cells with n<50 excluded. Part of the FRC Mortgage Decision Geometry Benchmark — a free ground-truth set for testing AI answers to mortgage questions. Machine-readable: ai-benchmark.json. Denial rates reflect applicant mix as well as underwriting; overlays are lawful.

What to do with this file

Does YOUR profile fit this door? Free routing → Denied by Freedom? Run the Verdict — free → Compare the 11 deep-file lenders — or all 100 →

Source: CFPB HMDA loan-level records, 2018–2025, FRC 11-lender panel; methodology at financeratecalc.com/methodology. Denial rates partly reflect applicant mix. Historical data observation; overlays are lawful; not a recommendation to use or avoid any lender; not financial, legal, or mortgage advice. FRC Research.