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). The bank ranked No. 21 nationally in mortgage volume in 2020, originating nearly 210,000 loans, according to a LendingPatterns analysis of Home Mortgage Disclosure Act data. 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 would be acquired by New York Community Bank, although it would keep the Flagstar name. The merger is expected to close in late 2021.
Borrowers looking for a wide array of loan options and online convenience
- Rate-and-term, cash-out and streamline refinancing
- Home equity loan
- Construction and renovation loans
Flagstar Bank doesn’t charge origination fees except on select state bond programs, according to a bank spokesperson.
To see Flagstar Bank’s latest mortgage rates, 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.
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 2020. Flagstar scored 821 points; the industry average was 856.
Flagstar Bank allows you to get prequalified and apply for a loan 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.
Minimum borrower requirements
Flagstar Bank’s mortgage products comply with the requirements of Fannie Mae, Freddie Mac, the FHA, VA and USDA. 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. Other requirements for FHA, VA and USDA loans are detailed here:
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.
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Breakdown of Flagstar Bank overall review score
- Affordability: 15/15
- Availability: 10/15
- Borrower experience: 9/10