Flagstar Bank Mortgage Review 2023

Pros and cons

Flagstar Bank overview

Flagstar Bank provides a variety of mortgage options for borrowers, including conventional loans, jumbo loans, government-backed loans and construction and renovation loans. The bank’s mortgage division operates online and through retail mortgage offices in more than two dozen states (Alabama, Arizona, California, Colorado, Connecticut, Florida, Georgia, Idaho, Indiana, Louisiana, Maine, Maryland, Massachusetts, Michigan, Nevada, New Jersey, New Mexico, New York, North Carolina, Ohio, Oregon, Rhode Island, Utah, Virginia, Washington and Wisconsin).

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Flagstar Bank is good for

Borrowers looking for a wide array of loan options and online convenience

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Breakdown of Flagstar Bank overall score

• Affordability: Flagstar Bank’s interest rates on mortgages are slightly above Bankrate’s average. Like most lenders, the bank charges an origination fee, but often runs promotions that waive this cost.
• Availability: Flagstar Bank’s mortgages are available nationwide. Its loan products include the standard suite of conventional and government-insured loans, as well as financing for new builds or renovations.
• Borrower experience: The bank’s website features some helpful information for borrowers, but its customer ratings from the Better Business Bureau could be better.

Methodology

To determine a mortgage lender’s Bankrate Score, Bankrate’s editorial team rates lenders on a scale of one to five stars based on a variety of factors relating to the lender’s products and services. Bankrate’s partners compensate us, but our opinions are our own, and partner relationships do not influence our reviews. Here is our full methodology.

Affordability: 4/5

Flagstar Bank’s mortgage rates aren’t the lowest compared to Bankrate’s averages. While the bank charges an origination fee, you might have an opportunity to save on that cost if there’s a promotion. Without the promotion, this fee is typically $1,395.

To see Flagstar Bank’s latest mortgage rates online, you’ll have to provide a number of details, including your credit score range, the price range of the property, the size of your down payment and your name and email address.

Availability: 4.8/5

Flagstar Bank caters to a variety of borrowing needs, offering conventional and FHA, VA and USDA loans, as well as jumbo products and home equity and refinancing solutions. The bank can also help with construction financing if you’re building or renovating a home. To qualify, you’ll need to meet minimum credit score standards based on loan type. Notably, the bank accepts just 10 percent down on a jumbo loan, assuming you qualify otherwise.

Borrower experience: 4.7/5

Flagstar Bank has been in business since 1987, with an estimated $1 trillion in loan originations since then. It has an A+ from the Better Business Bureau, but less than favorable reviews on both the BBB and Trustpilot. The bank also ranked near the bottom of the J.D. Power mortgage originator satisfaction survey for 2021. Flagstar scored 822 points; the industry average was 851.

If you’re buying a home and interested in a mortgage through Flagstar, you can expect an approval in 48 hours (provided you qualify), and to close in an average of 35 days.

The bank’s online learning center includes a variety of articles about the basics of borrowing. The lender also has an app that allows customers to monitor their accounts, and it offers e-signature for some documents.

Refinancing with Flagstar Bank

Flagstar Bank offers mortgage refinances, but provides refi rates online only if you provide information including your name, phone number, email and address of the property you’re looking to refinance.

Alternatives to Flagstar Bank

• LoanDepot mortgage review – This lender offers both an online option and more than 200 branches nationwide.
• Freedom Mortgage review – If you’re looking for a HELOC, Freedom Mortgage might fit the bill.
• Mr. Cooper mortgage review – This online-only lender offers a wider range of niche mortgage products.