Flagstar Bank Mortgage Review 2021

By Bankrate Staff

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.

At a glance

Flagstar Bank

NMLS: 417490

4.3

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Loans offered

Conventional, fixed, adjustable-rate mortgages (ARMs), FHA, VA, USDA, jumbo, construction and renovation; refinancing options include rate-and-term refinancing and cash-out refinancing; home equity loans
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Nationwide availability

Available in all U.S. states
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Min. credit score required

620 for conventional loans; 700 for jumbo loans; 580 for FHA loans

Pros and cons

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

  • Online information about loan costs limited

Flagstar Bank overview

Flagstar Bank is a federal savings bank and mortgage lender based in Troy, Michigan. It has been in business since 1987. Flagstar Bank provides a wide variety of mortgage options for homebuyers, including conventional loans, jumbo loans, government-backed loans and construction and renovation loans. Flagstar Bank’s mortgage division operates online and through retail mortgage offices in several 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).

Loan types

  • Conventional
  • Fixed
  • Adjustable-rate mortgages (ARMs)
  • FHA
  • VA
  • USDA
  • Jumbo
  • Construction and renovation
  • Rate-and-term refinancing
  • Cash-out refinancing
  • Home equity loans

Lender fees

Flagstar Bank’s lender fees vary by loan type. The bank doesn’t charge origination fees except on select state bond programs, according to a Flagstar spokesperson.

Minimum borrower requirements

Flagstar Bank’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 loans require only 3 percent down. 

Government requirements for FHA and VA loans are detailed here:

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Flagstar Bank consumer reviews

3.7

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3 reviews

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Customer service rating

Knowledge
3.7
Level of service
3.7
Professionalism
3.7
Responsiveness
3.7

67% of reviews would recommend this lender

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