Flagstar Bank Mortgage Review 2020
By Natalie Campisi
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Bankrate Score
3.7
3.7
Please note: In response to the coronavirus pandemic, lenders are changing their requirements continuously. Although we strive for accuracy at the time of publication, please be sure to check with the lender for updated details on down payments, credit scores, etc.
Flagstar Bank is a federal savings bank and mortgage lender based in Troy, Michigan. It has been in business since 1987. Flagstar provides a wide variety of mortgage options for homebuyers.Nationwide availability
Flagstar’s mortgage division operates online and through retail mortgage offices in 21 states: Alabama, Arizona, California, Colorado, Connecticut, Florida, Georgia, Indiana, Louisiana, Massachusetts, Michigan, Minnesota, Montana, New Jersey, New Mexico, New York, Nevada, Ohio, Utah, Virginia, Wisconsin. Flagstar Bank is chartered in the 50 states and the U.S. Virgin Islands and has 160 full-service bank branches in Michigan, Indiana, California, Wisconsin and Ohio.
Minimum credit score
Minimum credit score requirements range from 600 for FHA loans to 700 for jumbo fixed-rate mortgages. Conventional loans and USDA loans require a minimum credit score of 620.
Loan types
Conventional, fixed, adjustable-rate mortgages (ARMs), FHA, VA, USDA, jumbo mortgages
Pros
- Online application available
- Online portal for viewing recent transactions and managing payments
- Loan options including fixed-rate, adjustable-rate (ARM), FHA, USDA, VA and jumbo mortgages
- No origination fees except on state bond programs
- Rate and term and cash-out refinancing available
Cons
- Brick-and-mortar locations only in some states
- Online information about loan costs is limited
- No home equity loans
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Flagstar Bank overview
Loan Types
Conventional, FHA, VA, USDA, jumbo, and ARMs. Refinancing options include home equity loans.
Lender fees
Flagstar’s mortgage fees vary by loan type. They don’t charge origination fees, except on select state bond programs, according to a Flagstar spokesperson.
Minimum borrower requirements
Flagstar’s mortgage products comply with the requirements of Fannie Mae, Freddie Mac, FHA and VA. It also offers home loans that comply with U.S. Department of Agriculture, Rural Development (USDA-RD) guidelines and jumbo products for loan amounts that exceed the Fannie Mae, Freddie Mac, FHA and VA limits.
As for down payments, the requirement ranges from zero down for VA loans to 15 percent down for jumbo loans. Fannie Mae HomeReady and Freddie Mac Home Possible require only 3 percent down.
Government requirements for FHA and VA loans are detailed here:
Get started with Flagstar Bank
Borrowers can apply online, by phone, or in a branch. You can check for a branch near you on Flagstar’s website. Online, you can complete a short application and have a loan officer contact you or fill out an entire application.Hours
Flagstar Bank consumer rating and reviews
67% recommended
Flagstar Bank’s financial craftsmen listen to your story before tailoring a lending solution to suit you, using rich industry know-how and a wide range of competitively priced, flexible loan products.
- Top 15 lender that’s licensed to lend in all 50 states
- Simplified mortgage process and powerful online loan management tools
- Equal Housing Lender/Member FDIC
Customer Service Rating