Flagstar Bank Mortgage Review 2026
Available to online mortgage applicants nationwide, Flagstar offers an extensive list of accessible loan options, including government-backed and conventional mortgages with loan terms up to 40 years and low-down-payment professional and community loans. However, in-person service is limited: Based primarily around New York and Michigan, Flagstar has retail locations in just nine states.
See how we reached our verdict below.
- Digital service available nationwide
- Wide range of accessible loan options
- Offers specialty loans and exclusive grants
- Shrinking number of retail locations
- Above average loan costs
- Doesn’t handle mortgage servicing
Flagstar mortgage overview
Reorganized as Flagstar Bank, N.A., in 2025, this nearly 40-year-old financial institution has weathered a lot of change in the last few years. Acquired by New York Community Bankcorp in 2022, Flagstar’s headquarters have moved from Michigan to New York where over a quarter of regional branches are now located. In 2024, Flagstar also sold the bank’s mortgage servicing and third-party origination business, so it no longer services the mortgages it originates. In 2025, Flagstar shared plans to consolidate up to 60 local branches by year’s end.
The number of retail locations listed on Flagstar’s website declined by over 15% from February 2025 to November 2025. Among the remaining Flagstar Bank branches, most are located in Michigan (31%) and New York (28%). Roughly a third of the remaining Flagstar locations are divided among New Jersey (9%), Florida (8%), Indiana (8%) and Ohio (8%). The rest are scattered across Arizona (4%), California (3%) and Wisconsin (1%).
However, despite a smaller physical footprint, Flagstar still offers online mortgages nationwide.
- Areas of service: Nationwide for digital customers. Branch service is available at select locations in nine states: Arizona, California, Florida, Indiana, Michigan, New Jersey, New York, Ohio and Wisconsin.
- Digital service: Apply directly online or work remotely with a home loan advisor.
- Headquarters: 102 Duffy Avenue, Hicksville, NY 11801.
- Website: Flagstar.com
Flagstar rates and fees
Rates
Flagstar’s mortgage rates aren’t the lowest on the market, but they have become more competitive. The difference between the average Flagstar mortgage rate and the average prime offer rate (APOR), for example, has fallen by over half a percentage point. APOR is a key indicator of the lowest rates lenders offer and is calculated by the Consumer Financial Protection Bureau (CFPB).
According to Home Mortgage Disclosure Act (HMDA) data published in June 2025, the average Flagstar mortgage rate across all loan types was 0.60 percentage points above APOR in 2024, down from 1.11 points above APOR the year prior.
You can check Flagstar’s latest mortgage rates using the lender’s online mortgage rate comparison tool.
Fees
Flagstar’s overall loan costs remain quite high, pushing the total cost of a Flagstar mortgage $841 above the peer average.
According to HMDA data, Flagstar’s origination fees are just slightly above average for a nationwide lender. But when you factor in mortgage rates and other charges, Flagstar’s total home loan costs stand out. In 2024, the average Flagstar mortgage cost a total of $7,702 in the first year. Many competing mortgage lenders, by contrast, charged closer to $5,300.
Existing homeowners who take out a home equity loan with Flagstar can claim a quarter-point rate discount when they sign up for automatic payments using a Flagstar account.
Some first-time homebuyers may also qualify for down payment assistance, depending on the borrower’s income and new address. For example, first-time buyers in select cities may be able to shave up to 3% off a home’s purchase price or receive a maximum grant of $3,500 to $7,500.
What types of mortgage loans does Flagstar offer?
Flagstar’s conventional loan offerings include fixed-rate mortgages, adjustable-rate mortgages and cash-out refinances.
Conventional loan qualification requirements at Flagstar Bank include:
- No credit score minimum for conventional conforming loans
- 3% to 5% down payment
Flagstar also offers low-down-payment loans backed by the Federal Housing Administration, including FHA fixed-rate and FHA adjustable-rate loans.
FHA loan qualification requirements at Flagstar Bank include:
- 580 minimum credit score
- Borrowers with little or no credit history may also be eligible
- 3.5% minimum down payment
Low- and no-down-payment loans backed by the U.S. Department of Veterans Affairs include a VA 30-Year fixed-rate mortgage and a VA adjustable-rate mortgage.
VA loan qualification requirements at Flagstar Bank include:
- 580 minimum credit score
- Borrowers with little or no credit history may also be eligible
- No down payment required for qualifying veterans
- No mortgage insurance required
Unlike some competitors, Flagstar also offers qualifying rural homebuyers no-down-payment loans backed by the U.S. Department of Agriculture.
USDA loan qualification requirements at Flagstar Bank include:
- 580 minimum credit score, though borrowers with little to no credit history may also be eligible
- No down payment required
Big spenders looking to pay up to $3 million for a home may qualify for a Flagstar jumbo adjustable rate mortgage.
Jumbo loan qualification requirements at Flagstar Bank include:
- 700 minimum credit score
- 10% minimum down payment
Existing homeowners can choose a fixed-rate home equity loan with a 10, 15 or 20-year term or get a home equity line of credit (HELOC) with a 10-year draw and 20-year repayment period.
Home equity loan qualification requirements at Flagstar Bank include:
- 680 minimum credit score for a HELOC
Flagstar mortgage qualifications
| Credit score minimum | Most government-backed: 580 Conventional conforming: No minimum |
| DTI ratio Debt-to-income (DTI) ratio compares your monthly gross income to your monthly debt payments. maximum | Conventional: 45%FHA: 50%VA: 41%USDA: 41% |
| Down payment minimum | Conventional: 3% to 5%FHA: 3.5%VA: 0%USDA: 0% |
Don’t know your credit score? Get your free score on LendingTree Spring today.
Flagstar’s loan standards are more relaxed than some other lenders. But Flagstar is still fairly selective: According to HMDA data, Flagstar approved only about 71% of home loan applicants in 2024.
Borrowers with low debt-to-income (DTI) ratios have the best odds of approval. Over 45% of the home loan applicants Flagstar approved in 2024 had a DTI ratio under 40%. However, Flagstar doesn’t always consider a high debt load to be a deal-breaker. In fact, over 36% of successful Flagstar home loan applicants in 2024 had a DTI ratio above 43%. Even more notable: Among Flagstar home loan applicants with a DTI ratio above 50%, over 39% were still approved.
You don’t necessarily need a double-digit down payment to boost your chance of approval, either. The approval rate for Flagstar mortgage applicants with a down payment of 5% or less is almost the same as it is for applicants who put down 10% or more.
How to apply for a Flagstar mortgage
1. Choose your loan type
To review your mortgage choices, navigate to “Explore home loans” under the “Borrow” tab on Flagstar’s website.
2. Get prequalified
Request a prequalification to get a general idea of your mortgage budget. Or if you’re looking to shop around, ask for a mortgage preapproval that lasts for 90 days.
3. Submit a loan application
To apply online, navigate to “Buy a Home” under the “Borrow” tab, then tap “Apply now.” Or select “Find a loan advisor” so you can choose an advisor in your area to help you lock in a mortgage rate.
Find out more about how to apply for a home loan.
- Identification
- Tax documents
- Bank statement
- Pay stubs
- Debt and asset statements
- Gift letters (if you’re using gifted funds)
Is it safe to get prequalified with Flagstar?
Yes, getting prequalified with Flagstar is safe. For prequalification, Flagstar uses a soft credit check, so it won’t impact your credit score.
Flagstar’s customer service experience
Flagstar has spun off its mortgage servicing business, so a different company will handle your loan once you’re approved. But if you’re still in the mortgage application stage, you should typically be able to find what you need online. Flagstar’s website offers plenty of DIY tools and detailed content to help you level up your financial knowledge and make the right loan decision.
The bank also makes it easier than most to find a call number for help or remotely connect with your choice of advisor. The main mortgage helpline is published prominently on the “Buy a Home” page. You can also browse local home loan advisors using Flagstar’s digital directory.
- Phone: Depends on your location: See the customer service number listed on Flagstar’s “Buy a Home” page.
- Email: Fill out the email form at the bottom of Flagstar’s customer support page.
How does Flagstar compare to other lenders?
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| LendingTree’s rating |
Expert review from LendingTree.
Read Our Review
Back to our Flagstar summary |
Expert review from LendingTree.
Read Our Review
Read our Flagstar vs. Better comparison |
Expert review from LendingTree.
Read Our Review
Read our Flagstar vs. Chase comparison |
| Minimum credit score | 580 for government-backed mortgages; no minimum for conventional loans | 580 to 620 | No specified minimum |
| Minimum down payment | 0% to 3.5% | 0% to 3.5% | 0% to 3.5% |
| Rate spread Rate spread is the difference between the average prime offer rate (APOR) — the lowest APR a bank is likely to offer any private customer — and the average annual percentage rate (APR) the lender offered to mortgage customers in 2023. The higher the number, the more expensive the loan. | 0.60% | 0.19% | 0.11% |
| Loan products and programs |
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| Better for: | First-time homebuyers searching for a low- or zero-down-payment mortgage. | Borrowers with great credit who are looking for competitive terms and a hassle-free application process. | Borrowers who are looking for a more traditional bank experience. |
Flagstar vs. Better
When it comes to selection, Flagstar is the clear winner, offering first-time buyers in particular a much wider range of options. In addition to USDA and community loans, Flagstar offers homebuilding and renovation loans, as well as other niche home loan products, such as a unique low-down-payment professional mortgage for recent grads from credentialing programs. Better, on the other hand, doesn’t offer as much choice. However, its loans are more competitively priced. The online-only lender also stands out for its quick application process and time-saving services, including express one-day approvals, a real estate agent partner service and home inspections.
Read more in our full Better mortgage review.
Flagstar vs. Chase
A LendingTree pick for “best traditional bank online lending experience,” Chase does a good job of blending conventional mortgage lending with modern convenience. The bank’s mortgage pages include an online application and easy-to-use directory of lending advisors. Plus, with 5,000 branches scattered across the country, you have higher odds of finding a nearby branch if you prefer to bank in person. Chase mortgages also include plenty of good options for first-time homebuyers and are less expensive, on average, than Flagstar loans.
Read more in our full Chase mortgage review.
How LendingTree rated Flagstar Mortgage
LendingTree’s mortgage lender rating is based on a five-point scoring system that factors in several features, including digital application processes, available loan products and the accessibility of product and lending information.
LendingTree’s editorial team calculates each rating based on a review of information available on the lender’s website. Lenders receive a half-point on the “offers standard mortgage products” criterion if they offer only two of the three standard loan programs (conventional, FHA and VA). In some cases, additional information was provided by a lender representative.
Flagstar’s scorecard:
- Publishes rates online
- Offers standard mortgage products
- Includes detailed product info online
- Shares resources about mortgage lending
- Provides an online application
Frequently asked questions
In addition to a remote advisor service and an online mortgage application, Flagstar’s website is packed with helpful tools and education, including an impressive list of financial calculators.
Yes, Flagstar Bank is one of the biggest mortgage originators in the country and has been underwriting loans for decades.
You can view more info about Flagstar’s state licenses and registrations through the Nationwide Multistate Licensing System and Registry (NMLS) website.
Your credit score may decline temporarily when you first open a new loan. But mortgages tend to benefit credit scores over time, assuming you keep up with your payments.
Flagstar’s home loan products are solid, and the bank’s selection is among the best around. However, since Flagstar no longer services its own mortgages, it’s harder to know what your mortgage experience will be like based on old reviews.
Flagstar sold its mortgage servicing business in 2024 to Mr. Cooper, a Texas-based company that ranked 24th out of 32 mortgage servicers in J.D. Powers’ 2025 customer satisfaction survey. So far, the transition hasn’t been seamless. Some customers have complained on TrustPilot of poor coordination between the two companies, as well as subpar communication.
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