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Flagstar Bank Mortgage Review 2024

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At a glance

Flagstar Bank
NMLS: 417490
Editor's take

Flagstar Bank joined up with New York Community Bank in 2022, with some of its mortgage operations a casualty of the merger. The bank is still one of the largest home loan lenders, however, and a worthy option to consider. Depending on where you live, it might be easier to apply for a loan online — the bank’s mortgage offices are limited to about half of U.S. states.

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4.6
Rating: 4.6 stars out of 5
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Customer Rating
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Mortgage Percent

Loans offered

Conventional, jumbo, FHA, VA, USDA, refinancing and more

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 except Texas

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

4.6

Rating: 4.6 stars out of 5
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Bankrate Score

Mortgage Percent

Loans offered

Conventional, jumbo, FHA, VA, USDA, refinancing and more

Location

Nationwide Availability

All U.S. states except Texas

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. The bank’s mortgage division operates online and through retail mortgage offices in 12 states.

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Bankrate insight

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

Pros and cons of Flagstar Bank

Pros
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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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    Mortgage branches not in every state

Our Editor’s Take on Flagstar Bank

Flagstar Bank joined up with New York Community Bank in 2022, with some of its mortgage operations a casualty of the merger. The bank is still one of the largest home loan lenders, however, and a worthy option to consider. Depending on where you live, it might be easier to apply for a loan online — the bank’s mortgage offices are limited to about half of U.S. states.

How Bankrate scored Flagstar Bank

  • Affordability: Flagstar Bank’s interest rates on mortgages are slightly above Bankrate’s average (as of this review). The bank doesn’t charge any lender fees, however.
  • Availability: Flagstar Bank’s mortgages are available nationwide. Its loan products include the standard suite of conventional and government-backed 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: 8.4/10

Flagstar Bank’s mortgage rates aren’t the lowest compared to Bankrate’s averages, but it also doesn’t charge lender fees, which could save you some money at closing.

Availability: 10/10

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: 9.2/10

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 mortgage with Flagstar Bank in person at a branch location, online or by phone at 866-809-4582 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 offers both rate-and-term and cash-out refinancing options.

Compare Flagstar Bank to other lenders

Flagstar Bank
Rating: 4.6 stars out of 5
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4.6

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Bethpage Federal Credit Union
Rating: 4.9 stars out of 5
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4.9

Bankrate Score
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Read full review
First Mortgage Direct
Rating: 4.8 stars out of 5
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4.8

Bankrate Score
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Read full review

Loans offered

Conventional, jumbo, FHA, VA, USDA, refinancing and more

Loans offered

Conventional, jumbo, FHA, refinancing and more

Loans offered

Conventional, jumbo, FHA, VA, USDA, refinancing and more

Min. credit score required

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

Min. credit score required

620 for conventional loans, 500 for FHA loans

Min. credit score required

620 for conventional 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% for conventional loans, 3.5% for FHA loans

Down payment

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

Nationwide availability

All U.S. states except Texas

Nationwide availability

Available in all U.S. states except Texas

Nationwide availability

All U.S. states

Flagstar Bank customer ratings and reviews

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NMLS: 417490

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