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Flagstar Bank Mortgage Review 2022

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been reviewed, commissioned or otherwise endorsed by any of our network partners.

Flagstar Bank is a Troy, Michigan-based financial institution founded in 1987 with more than 150 branches across Michigan, Indiana, California, Wisconsin, and Ohio. The bank also has more than 80 home loan centers in 28 states and is currently the sixth-largest bank mortgage originator in the country. Mortgages are available in all 50 states.

Who is this lender for?
  • First-time homebuyers
  • Veterans and service members seeking a VA loan
  • Families looking to build or renovate a home
  • Investors looking to finance a rental portfolio
  • Borrowers needing a jumbo loan

8/10 LendingTree’s mortgage lender rating 

LendingTree’s mortgage lender rating is based on a 10-point scoring system that factors in several features, including digital application and closing processes, available loan products and online and in-person accessibility. LendingTree’s editorial team calculates each rating.

  = 1 pt   = 0 pts

  1.   Application online 
  2.   Product info online 
  3.   Rates listed online 
  4.   Helpful articles about mortgages and homebuying 
  5.   Standard product offerings (Conventional/FHA/VA/USDA)
  6.   Special programs (first-time homebuyer grants, purchase closing cost incentives)
  7.   Info about how to qualify for products offered online 
  8.   E-closing availability 
  9.   Licensed in at least 35 states 
  10.   After-hours and weekend access to loan officers 

Flagstar Bank pros and cons

Pros

  Easy to get a mortgage quote. While some lenders require you to contact a loan officer to find current mortgage rates, Flagstar Bank allows you to fill out a simple form and get quotes on multiple loans instantly.

  Down-payment assistance programs. Flagstar Bank offers a number of down-payment assistance programs, including grants and no-down-payment loans for borrowers in some areas.

  Mortgages available nationwide. Flagstar Bank is federally licensed and can originate mortgages in all 50 states.

Cons

  Little information on how to qualify. Flagstar Bank doesn’t publish much information on how to qualify for its mortgages on its website. You can’t determine if your credit score will be high enough without filling out an application or talking to a loan officer.

  Loan officers not available in all states. While you’ll be able to get a mortgage in any state, you won’t find a local loan officer everywhere.

  Home equity loans not available in all areas.  If you want to tap your home equity, you can also get a home equity loan or home equity line of credit (HELOC) at Flagstar — but only in certain states.

Flagstar Bank borrowing requirements

Minimum credit scoreNot published
Minimum credit score 
  • Not published
Minimum down payment 
  • 0% for VA and USDA loans
  • 3.5% for FHA loans
Available loan terms 
  • 8-30 years on fixed-rate loans
  • 3-, 5-, 7- or 10-year initial periods on adjustable-rate loans
Available loan types 
  • Conventional
  • FHA
  • VA
  • USDA
  • Jumbo
  • New construction
  • Renovation
  • Multiple property loans
  • Home equity

Flagstar Bank mortgage rates and fees

Flagstar Bank allows customers to fill out a simple form with their estimated home purchase price, down payment and ZIP code and get rate quotes on a number of different mortgages.

The lender doesn’t disclose its fees but says closing costs tend to fall between 2% and 5% of the loan amount. These closing costs include:

  • Origination fee
  • Appraisal fee
  • Underwriting fee
  • Processing fee
  • Closing transaction fee
  • Title insurance

Flagstar Bank mortgage products

Purchase

  • Conventional loans. Flagstar offers conventional loans with fixed-rate terms ranging from eight to 30 years and adjustable-rate mortgages (ARMs) with fixed periods of three, five, seven or 10 years.
  • FHA loans. Flagstar advertises a 30-year, fixed-rate option, but its FHA loan offerings include fixed-rate mortgages with shorter terms and ARMs.
  • VA loans. Flagstar advertises both fixed-rate and adjustable-rate, no-down-payment VA loans with limits up to $2 million.
  • USDA loans. If you’re looking for a home in a rural area, the zero-down, fixed-rate USDA loan from Flagstar could be a low-cost option.
  • Jumbo loans. The company advertises a 30-year fixed jumbo loan and adjustable-rate jumbo loans for homes up to $3 million.

Refinance

  • Conventional refinance loans. Homeowners can refinance to reduce their interest rate or change their loan term. Also, borrowers can borrow from their home equity with a cash-out refinance.
  • FHA cash-out refinance loans. Borrowers with FHA loans can also take money out through a refinance.
  • FHA streamline refinance loans. This refinance program offers less paperwork.
  • VA interest rate reduction refinance loans (IRRRLs). This streamlined refinancing option often lets mortgage holders skip an appraisal — and lower their principal and interest payments on an existing VA loan.

Home equity

  • Home equity loans. Flagstar Bank offers fixed-rate home equity loans in some states. Loan amounts range from $10,000 to $1million with 10-, 15- and 20-year term options. 
  • Home equity line of credit (HELOC). Flagstar Bank has an adjustable-rate home equity line of credit with limits between $10,000 and $1 million. The loan has a 10-year draw period with a 20-year repayment term and includes an interest-only option. 

Special programs

  • Down payment assistance programs. Flagstar Bank offers assistance towards down payments and closing costs to eligible borrowers. Programs include gifted funds up to $5,000, grants up to $7,500 and a zero-interest loan. 
  • Destination Home Mortgage. In certain areas, borrowers may qualify for a no-down-payment mortgage.
  • Federal Home Loan Grant programs. Flagstar Bank offers three grants under this program. Eligible borrowers can receive funds up to $12,000 for home repairs, accessibility modifications and down payment assistance

How does Flagstar Bank compare to other lenders?

Flagstar BankBMO Harris BankWells Fargo
Minimum credit score 
  • Not published
  • 660 for conventional loans
  • 580 for FHA loans
  • 640 for Housing Finance Agency programs
  • Not published
Minimum down payment 
  • 0% for VA and USDA loans
  • 3.5% for FHA loans
  • 0% with down payment assistance
  • 1% otherwise
  • 0% for VA and USDA loans
  • 5% on conventional loans
  • 3.5% on FHA loans
Loan products and types 
  • Conventional
  • FHA
  • VA
  • USDA
  • Jumbo
  • New construction
  • Renovation
  • Multiple property loans
  • Home equity
  • Conventional
  • FHA
  • Jumbo
  • Conventional
  • FHA
  • VA
  • USDA
  • Jumbo
  • New construction
Special programs offered 
  • Down payment assistance programs
  • Destination Home Mortgage
  • Federal Home Loan Grant programs
  • Down payment assistance
  • Physician mortgages
  • Investment property loans
  • Multifamily loans
  • NeighborhoodLIFT down payment assistance program
  • “Dream. Plan. Home.” closing cost assistance program

 

Today's Mortgage Rates

  • 5.95%
  • 5.76%
  • 3.31%
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