Flagstar Bank Mortgage Review 2022

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). From 1987 to 2021, Flagstar Bank operated as a federal savings bank and mortgage lender based in Troy, Michigan. In April 2021, Flagstar announced it is being acquired by New York Community Bank, although it would keep the Flagstar name.

Good for

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

Loan types 

• Conventional
• Jumbo
• FHA
• VA
• USDA
• Fixed-rate
• Adjustable-rate
• Rate-and-term, cash-out and streamline refinancing
• Home equity loan
• Construction and renovation loans

Lender fees 

Flagstar Bank doesn’t charge origination fees except on select state bond programs, according to a bank spokesperson. 

Rates

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.

Reputation 

Flagstar Bank has a grade of A+ from the Better Business Bureau. Its Trustpilot score is 2.6, or “Poor,” but that rating is based on just a handful of reviews. The bank ranked near the bottom of the J.D. Power mortgage originator satisfaction survey for 2021. Flagstar scored 822 points; the industry average was 851.

Online services

Flagstar Bank allows you to get prequalified and apply for a mortgage online. 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.

Minimum borrower requirements

Flagstar Bank’s mortgage products comply with the requirements of Fannie Mae, Freddie Mac, the FHA, VA and USDA. For down payments, the requirement ranges from zero down for VA loans to 10 percent down for jumbo loans. Fannie Mae HomeReady and Freddie Mac Home Possible loans require only 3 percent down. Other requirements for FHA, VA and USDA loans are detailed here:

• FHA loan requirements
• VA loan requirements
• USDA loan requirements

Refinancing with Flagstar Bank

Flagstar Bank offers mortgage refinances, but the lender 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.

Not sure if Flagstar Bank is right for you? Consider these alternatives

• 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.
• United Wholesale Mortgage review: United Wholesale Mortgage can be a good choice if you’re working with a mortgage broker to find the right loan.
• Costco Mortgage Program review: The popular retailer’s offering lets you compare bids from multiple lenders.

Breakdown of Flagstar Bank overall review score 

• Affordability: 5/5
• Availability: 4.5/5
• Borrower experience: 4.7/5

Review 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.