Flagstar Bank Mortgage Review 2026

Flagstar Bank was founded in 1987 as First Security Savings Bank and adopted the Flagstar Bank name in 1996. It has been involved in residential mortgages for nearly four decades. In late 2024, the company sold its mortgage servicing and third-party origination platform to the Mr. Cooper Group, one of the largest mortgage servicers in the U.S., which is in turn owned by Rocket Mortgage. Based in Hicksville, NY, Flagstar has approximately 340 branches, primarily in the NY/NJ metropolitan area, the upper Midwest, Florida and the West Coast. 

Pros and cons of Flagstar Bank

Affordability: 3.4 stars

Flagstar Bank mortgage rates are slightly above Bankrate's averages at the time of this review. The company offers a range of low-down-payment options that may help borrowers save money, however. We give Flagstar a 3.4 out of 5 stars for affordability. It boasts an impressive list of low- and no-down payment mortgage options, including the Destination Home Mortgage program that doesn’t require mortgage insurance. Please note, though, it might charge a $1,295 origination fee, depending on the loan product and other factors.

Availability: 5 stars

Flagstar Bank scores 5 out of 5 stars for availability thanks to a widespread footprint and myriad loan options. Its depth of home loan offerings puts it ahead of some competitors. Its options include harder-to-find mortgages such as USDA loans, physician loans and mortgages for non-U.S. citizens. You can apply for a mortgage with Flagstar Bank online, by phone or in person at a branch location.

Borrower experience: 4.4 stars

We scored Flagstar Bank 4.4 out of 5 stars for borrower experience. The bank offers a speedy process and makes it easy to get custom rates via its website. It offers prequalifications in as little as five minutes, and its preapproval letters are good for 90 days. You can complete your full mortgage application online using the bank’s MyLoans tool, but you will need to give contact info.

Flagstar displays current mortgage rates online without requiring you to share contact information. That’s a unique point of differentiation versus some other lenders. Another key distinction is the bank’s ability to include an estimate for mortgage insurance costs based on your down payment and credit score range. This isn’t a feature widely available among other lenders.

You can reach Flagstar Bank’s customer service team at 877-232-6576, Monday through Thursday, 9 a.m. to 8 p.m. ET, Friday, 9 a.m. to 7 p.m. ET and Saturday, 10 a.m. to 3 p.m. ET.

Flagstar Bank reviews included a “bad” rating on Trustpilot at the time of this review, and a lot of those complaints were related to the bank’s mortgage business — particularly how it handled transitioning loans to Mr. Cooper when the bank sold off its servicing business in 2024. The Flagstar Mortgage reviews with the Better Business Bureau are also low: the company has a 1.05 out of 5-star rating, with many complaints focused on account management. It’s also worth noting that Flagstar has faced significant headwinds recently, including a sizable loss in the second quarter of 2025.

Flagstar Bank Mortgage in the news

In late 2025, Flagstar Bank agreed to a $31.5 million settlement to resolve two class action lawsuits that stemmed from data breaches impacting more than 2 million customers. The data breaches occurred in 2021 and 2022. The settlement provides reimbursement for monetary losses and three years of credit monitoring for those impacted. 

What Bankrate users say about Flagstar Bank

There are currently very few reviews for Flagstar Bank from Bankrate users. While the current review is negative, you may want to talk with family members or friends who have used the lender to get a feel for what your experience may be like.