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Flagstar Bank Mortgage Review 2023

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At a glance

Flagstar Bank
NMLS: 417490
Editor's take

Flagstar Bank is good for borrowers looking for a wide array of loan options and online convenience.

Bankrate Score
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4.5
Rating: 4.5 stars out of 5
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Customer Rating
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This lender has 0 reviews.
Mortgage Percent

Loans offered

Conventional, jumbo, FHA, VA, USDA, fixed-rate, adjustable-rate; refinancing

Credit Good

Min. credit score required

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

Location

Nationwide availability

All U.S. states

Dollar Coin

Min. down payment

3% for conventional loans; 3.5% for FHA loans; none for VA loans and USDA loans

At a glance

Flagstar Bank

NMLS: 417490

4.5

Rating: 4.5 stars out of 5
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Bankrate Score

Mortgage Percent

Loans offered

Conventional, jumbo, FHA, VA, USDA, fixed-rate, adjustable-rate; refinancing

Location

Nationwide Availability

All U.S. states

Credit Good

Min. credit score required

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

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. New York Community Bank bought Flagstar Bank in late 2022, but the bank still uses the Flagstar name. 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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Bankrate insight

Flagstar Bank was the nation's 23th most-active lender in 2022, according to federal data.

Pros and cons of Flagstar Bank

Pros
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    Works with borrowers in all 50 states

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    Convenient online application

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    Online portal to view recent transactions and manage payments

Cons
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    Rates somewhat higher compared to other lenders

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    Branches only in five states

Our Editor’s Take on Flagstar Bank

Flagstar Bank is good for borrowers looking for a wide array of loan options and online convenience.

How Bankrate scored Flagstar Bank

To determine Flagstar Bank’s Bankrate Score, Bankrate’s editorial team rated it and other 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.) We derived its overall score by considering three basic factors:

  • 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.

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 wasn’t ranked in J.D. Power’s 2022 survey.) 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.

How to apply for a mortgage with Flagstar Bank

You can apply for a purchase loan or a refinance in person at a branch or via the bank’s website.

Here are some tips to prepare for the process:

  1. Check your credit report. It’s important to check your credit report before your lender does, in case there are errors that could impact not only whether you get preapproved but also your ability to get the best mortgage rate. Knowing your credit score also helps you decide what type of loan to apply for. If your score is in the very low 600s, for instance, an FHA mortgage might be best for you, as its standards are more lenient than those for conventional loans.

  2. Gather personal and financial documents. With any lender, you must supply documentation about your income, assets and debts. This includes pay stubs and W-2s and account and loan statements.

  3. Provide details about the property. You’ll need to provide the address of the home and submit to an appraisal. (If you’re refinancing, you might or might not need an appraisal.)

Refinancing with Flagstar Bank

Flagstar Bank can help you refinance your existing mortgage. Before you start, think about your goals. Are you refinancing to adjust your current mortgage’s rate and term? Do you want to tap into home equity? Do you want to change loan programs, such as refinancing out of an FHA loan into a conventional mortgage? Once you’ve settled on those details, you can apply through the bank’s website, its call center or in-person at a branch (limited to certain states).

Compare Flagstar Bank to other lenders

Flagstar Bank
Rating: 4.5 stars out of 5
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4.5

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LoanDepot
Rating: 4.4 stars out of 5
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4.4

Bankrate Score
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Read full review
Rocket Mortgage
Rating: 4.5 stars out of 5
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4.5

Bankrate Score
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Read full review

Loans offered

Conventional, jumbo, FHA, VA, USDA, fixed-rate, adjustable-rate; refinancing

Loans offered

Conventional, jumbo, FHA, VA, fixed-rate, adjustable-rate; rate-and-term and cash-out refinancing; construction and renovation loans

Loans offered

Conventional, jumbo, FHA, VA, fixed-rate, adjustable-rate; rate-and-term, cash-out and streamline refinancing; home equity loan; investment property; flex-term

Min. credit score required

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

Min. credit score required

620 for conventional loans, 700 for jumbo loans, 580 for FHA loans, 620 for VA loans

Min. credit score required

620 for conventional loans, 680 for jumbo loans, 580 for FHA loans, 580 for VA loans

Down payment

3% for conventional loans; 3.5% for FHA loans; none for VA loans and USDA loans

Down payment

3.5% for FHA loans

Down payment

3% for conventional loans; 10%-15% for jumbo loans; 3.5% for FHA; none for VA loans

Nationwide availability

All U.S. states

Nationwide availability

Available in all U.S. states

Nationwide availability

All U.S. states

Flagstar Bank customer ratings and reviews

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NMLS: 417490

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