Flagstar Bank Mortgage Review
Flagstar Bank at a glance
| Minimum credit score: 580 to 620 Minimum down payment: 0% to 3.5% Available loan products and programs: Conventional, FHA, VA, jumbo, HELOC |
Our verdict: Flagstar Bank can be a good fit for buyers looking for a range of mortgage products, including mortgage help in the form of grants and down payment assistance.
| Pros | Cons |
|---|---|
Robust range of mortgage products available Grants and special home loan programs available Online and in-person mortgage experience possible | Full-service branches are limited to only five states Home equity loans aren’t available nationwide Doesn’t offer 10-year mortgages or USDA loans |
Flagstar Bank was founded in 1987 and is the third-largest savings bank in the nation, with more than $24 billion in assets. It offers mortgage loans nationally and operates full-service branches in California, Indiana, Michigan, Ohio and Wisconsin.
Flagstar Bank mortgage products
Conventional
- Flagstar offers purchase mortgages with 15- and 30-year fixed-rate terms
- You can find refinance loans, including cash-out refinancing, with Flagstar Bank
- Conventional mortgage requirements involve a minimum 3% down payment and 620 credit score
FHA
- You could get a 30-year fixed-rate Federal Housing Administration (FHA) loan, which offers greater flexibility on credit score and other requirements
- You’ll still need a 3.5% minimum down payment and a credit score of 580 or higher
VA
- Flagstar offers 30-year fixed-rate Department of Veterans Affairs (VA) loans with loan amounts up to $4 million and no down payment or mortgage insurance required
- If you want to refinance your current VA loan, you could also get a streamlined VA interest rate reduction refinance loan (IRRRL)
Home equity
- A Flagstar home equity line of credit (HELOC) allows borrowers to take out amounts between $10,000 and $1 million over a 10-year draw period. There’s a 0.50% interest rate discount for having automatic payments, and the $75 annual fee is waived the first year
- Whether you can get a home equity loan with Flagstar depends on your location
Jumbo
- A jumbo loan is a mortgage that allows you to borrow more than the conforming loan limit in your area
- On primary residences, you could get a purchase, rate-and-term refinance or cash-out refinance loan of up to $3 million
- On second or vacation homes, you could get a purchase, rate-and-term refinance or cash-out refinance loan of up to $2.5 million
Special programs
- Construction loans and remodeling loans. You could build your dream house or make improvements to your current home.
- Down payment assistance programs. Eligible homebuyers could receive up to $7,500 to use toward a down payment or closing costs.
- Federal home loan grant programs. You could receive up to $12,000 to make your home more accessible or complete needed repairs and up to $8,000 to use toward your down payment, if you meet income, age or disability requirements.
- Community Reinvestment Act (CRA) loan programs. These lending programs for buying and refinancing homes, including Fannie Mae HomeReady® and Freddie Mac Home Possible®, typically feature less stringent eligibility requirements.
Flagstar Bank mortgage rates and fees
Flagstar’s mortgage rates are published online and easy to find. Mortgage fees include a $1,295 origination fee for most loans, though this fee increases to $1,445 for jumbo loans. You can read about mortgage closing costs and what to expect here.
| Mortgage rates published online? | |
| Rate information updated daily or weekly? | |
| Lender fees disclosed? |
Flagstar Bank’s application experience
If you want to see how much you could borrow and what type of rate you qualify for, you could get a mortgage prequalification with Flagstar.
Once you know the house you want, Flagstar offers an in-person or online application experience. If you prefer to do business face to face, Flagstar’s locator tool lets you look up branches and contact info for loan advisors near you.
Online, the “Apply Now” button takes you to a form asking for loan information, such as how much you’d like to borrow; personal details, such as your name and current address; and your contact information.
Flagstar Bank’s customer service experience
You can live chat with Flagstar Bank or call 855-977-7152 for live customer service help during the following hours:
- Monday-Thursday: 8 a.m. to 10 p.m. ET
- Friday: 8 a.m. to 8 p.m. ET
- Saturday: 10 a.m. to 5 p.m. ET
For loan servicing support, you can call this number anytime: 800-968-7700. You can also email anytime by using a form on Flagstar’s website.
How does Flagstar Bank compare to other lenders?
| Flagstar Bank | PenFed | Mr. Cooper | |
|---|---|---|---|
| Lender rating |  |  |  |
| Minimum credit score | 580 to 620 | 620 to 650 | Not published |
| Minimum down payment | 0% to 3.5% | 0% to 3.5% | 0% to 3.5% |
| Loan products and programs |
|
|
|
| Rate spread* | 0.74% | 0.11% | 0.58% |
How we rated Flagstar Bank
LendingTree’s mortgage lender rating is based on a five-point scoring system that factors in several features, including digital application processes, available loan products and the accessibility of product and lending information.
LendingTree’s editorial team calculates each rating based on a review of information available on the lender’s website. Lenders receive a half point on the “offers standard mortgage products” criterion if they offer only two of the three standard loan programs (conventional, FHA and VA). In some cases, additional information was provided by a lender representative.
Flagstar Bank’s scorecard: 5/5
Publishes rates online
Offers standard mortgage products
Includes detailed product info online
Shares resources about mortgage lending
Provides an online application