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Business Insider's personal finance team reviewed Flagstar Bank and found it to be one of the best mortgage lenders thanks to its wide variety of loan offerings and affordable mortgage programs. We think Bankrate Flagstar Bank Mortgage is a strong choice for both repeat and first-time homebuyers.
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Rocket Mortgage -
AmeriSave Mortgage Corporation Mortgages
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New American Funding
620
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Conforming, jumbo, FHA, VA, USDA, construction, renovation, professional, home equity loan, and HELOC
- Many types of mortgages
- Has low and no down payment options
- Down payment assistance available
- See personalized rates online
- No reverse mortgages
- Only has branches in Arizona, California, Florida, Indiana, Michigan, New Jersey, New York, Ohio, and Wisconsin.
Flagstar Bank is one of the best USDA loan lenders, and it's a solid choice for a wide variety of mortgage types. Flagstar has a lot of very positive online customer reviews, and it has one of the best rate comparison tools we've seen.
- Offers mortgages in all 50 US states and Washington, DC
- HFA (state bond programs) available in Arizona, California, Connecticut, Idaho, Michigan, Nevada, Ohio, New Mexico, Virginia, Washington, and Wisconsin
- Minimum credit score and down payment displayed are for conforming mortgages
Flagstar Bank Mortgage Basics
Lending Area and Branches
Flagstar Bank has branches in Arizona, California, Florida, Indiana, Michigan, New Jersey, New York, Ohio, and Wisconsin, and it provides mortgages in all 50 U.S. states.
Flagstar Bank Mortgage Options
You can get the following types of home loans from Flagstar:
- Conforming loans
- Jumbo loans
- FHA loans
- VA loans
- USDA loans
- Construction loans
- Renovation loans
- Professional loans for individuals just starting out in careers that typically require expensive degrees, like medicine (including home loans for nurses) and law
- ITIN loans
- Home equity loans and HELOCs
- Multiple property loans, which can be used to purchase several properties at one time
Affordable Mortgages and Down Payment Assistance
Flagstar's Destination Home Mortgage can help borrowers in eligible counties throughout the country get into a home with no down payment and no private mortgage insurance.
Flagstar also has a couple of programs that offer down payment assistance to first-time homebuyers.
The Flagstar Gift Program offers up to $3,000 for your down payment and closing costs, or up to $10,000 if you live in Arizona, California, Florida, New Jersey, or New York. This program is only available in certain counties in Arizona, California, Connecticut, Florida, Indiana, Michigan, Nevada, New York, North Carolina, Ohio, and Wisconsin.
The Flagstar Power Up Program comes with up to $8,000 for borrowers in eligible census tracts within metro areas throughout the country.
Additionally, Flagstar partners with some state and local homeownership programs to provide affordable mortgages for first-time or low-income homebuyers. This includes HFA loans, or housing finance agency loans, which are available in Connecticut, Michigan, Ohio, and Wisconsin.
Flagstar Bank Mortgage Interest Rates and Fees
Based on our review of Home Mortgage Disclosure Act data, Flagstar Bank's mortgage rates are around average compared to other mortgage lenders.
Flagstar makes it easy to customize your rates online to get an idea of what you'll pay. Enter your purchase price, down payment amount, ZIP code, and more to see a personalized rate.
According to HMDA data, in 2023 the average borrower getting a conventional mortgage with this lender paid $4,176 in origination charges, which is about average compared to other lenders.
Flagstar Bank Mortgage Overall Rating
Loan Types: 5 out of 5
Flagstar Bank offers a plethora of mortgage options, and most borrowers should be able to find what they're looking for with this lender.
Affordability: 4 out of 5
Overall, we think Flagstar is an affordable lender, with multiple low down payment or flexible mortgage options. However, its rates and fees are just average, so it's possible you could get a cheaper loan elsewhere.
Customer Satisfaction: 4.97 out of 5
On its Zillow lender profile, Flagstar Bank has a 4.97 out of 5-star rating, based on over 2,900 customer reviews.
Trustworthiness: 5 out of 5
The Better Business Bureau gives Flagstar an A+ rating. A strong BBB score indicates that a company responds effectively to customer complaints, advertises honestly, and is transparent about business practices.
Flagstar Bank Mortgage Pros and Cons
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Many Affordable Mortgages and Homebuyer Assistance Programs
If you're looking for affordable mortgage options or down payment assistance as a first-time homebuyer, Flagstar might be a good lender for you. It has multiple government-backed loan options plus a Destination Home Mortgage that has a zero-down option for eligible borrowers.
Plus, you could qualify for as much as $10,000 in down payment and closing cost assistance depending on your location and what program you're eligible for.
Limited Options if You Prefer an In-Person Experience
If you're looking for a lender that you can get started with in person (or you want to work with a local loan officer) and you don't live in a state that Flagstar has branches in, this probably won't be the right lender for you.
What Borrowers Are Saying About Flagstar Bank Mortgages
Business Insider looked at positive and negative customer reviews, online forums, BBB complaints, and other sources to understand what borrowers think about Flagstar Bank's mortgage process.
Communicative and Helpful Loan Officers
Previous borrowers generally have positive things to say about the mortgage pros they worked with at Flagstar. Borrowers say that the process was smooth and that their loan officers were communicative and quick to respond to questions.
How Flagstar Bank Mortgages Compare
Flagstar Bank vs. Movement Mortgage
Movement Mortgage advertises a speedy process in which it will underwrite your loan in six hours, process your loan in seven days, and close in one day. Overall, it's one of our stronger lenders, and like Flagstar, it offers a large range of mortgage options.
But Flagstar has more options that can help first-time and low-income homebuyers get into a home. Plus, it's easier to explore rates with Flagstar. To see Movement's rates, you'll need to talk to a loan officer or start an application.
Flagstar Bank vs. Fairway Independent Mortgage Corporation
Fairway Independent Mortgage Corporation is one of the best mortgage lenders available, and it's a particularly good choice for customer service, since it ranked No. 1 in J.D. Power's 2023 Mortgage Origination Satisfaction Study.
But Flagstar Bank's wide range of mortgage products makes it hard to beat.
Fairway Independent Mortgage Corporation Review
Flagstar Bank Mortgage FAQs
Yes, Flagstar is a real mortgage lender. Flagstar Bank has an A+ rating from the BBB and many positive online customer reviews. In addition to mortgage lending, Flagstar also offers banking and investing services.
You'll need at least a 620 credit score to get a conforming mortgage with Flagstar Bank. Other loan types may have different minimum score requirements.
Yes, Flagstar Bank is a direct lender. This means it originates its own loans, as opposed to a mortgage broker, which connects borrowers with multiple lenders to find the best fit.
According to our review of HMDA data, Flagstar's mortgage rates are around average compared to other lenders.
We think that Flagstar offers high quality customer service, based on the customer reviews, comments, and complaints we looked at.
Yes, Flagstar has several special mortgage programs, including down payment assistance programs and a mortgage that lets eligible borrowers put zero down.
Why You Should Trust Us: How We Reviewed Flagstar Bank Mortgages
To review Flagstar Bank's mortgage offerings, we used our methodology for reviewing mortgage lenders.
We look at four factors — loan types, affordability, customer satisfaction, and trustworthiness — and give each a rating between 1 and 5, then average these individual ratings for the overall lender rating. Lenders get higher ratings if they offer a high number of loan types with affordable features, have positive customer reviews, and don't have any recent public controversies.
Editorial Note: Any opinions, analyses, reviews, or recommendations expressed in this article are the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any card issuer. Read our editorial standards.
Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.
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