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Flagstar Bank is one of America’s largest bank mortgage originators, and it services $225 billion worth of home loans. Flagstar only has bank branches in California, Indiana, Michigan, Ohio, and Wisconsin — but it has home loan centers in 88 locations throughout the U.S.
Flagstar Bank mortgage reviews rate it highly for its knowledgeable mortgage reps and competitive rates. But don’t jump in before reviewing the types of mortgage loans Flagstar offers to see if this is the right lender for you.
In this post:
Flagstar Bank mortgage purchase review
Best for:
- Borrowers who need a non-conforming loan for a high-value home or a home in a high-cost area
- First-time homebuyers who might benefit from state Housing Financing Authority loan programs
- Borrowers with little or no down payment
- Past and present members of the military
Flagstar Bank offers a comprehensive selection of mortgage loans. Customers also appreciate that their loans close in a timely manner, even with complicated circumstances.
Find Out: How to Get a Mortgage Pre-Approval
Fixed-rate loans
A fixed-rate mortgage is a budget-friendly option that guarantees your interest rate and payment will stay the same for the life of the loan. Flagstar Bank offers conventional fixed-rate mortgages with terms of eight to 30 years, plus up to 30-year government-insured loans.
There are ways to buy a house even if you don’t have cash for a down payment. Consider a VA or USDA loan if you’re interested in a Flagstar Bank 0% down mortgage.
Review the costs associated with these loans before you apply. You’ll pay a guarantee fee for a USDA loan and a funding fee on a VA loan, which adds an extra cost to borrowing.
See: How to Get the Best Mortgage Rates
Adjustable-rate loans
If you’re not planning to stay in your new home for the long term, an adjustable-rate mortgage might work for you.
The interest rates for conventional adjustable-rate loans stay the same for five, seven, or 10 years, and then change every year after that. Flagstar also offers FHA and VA adjustable-rate mortgage loans.
Learn: How to Buy a House: Step-by-Step Guide
Specialty mortgage loans
Special circumstances require special mortgages, and Flagstar Bank has you covered there, too. Here are some of the bank’s specialty loans:
- Jumbo Loan: A $510,401 to $3 million loan with an adjustable rate
- High Balance: A $510,401 loan or higher with an adjustable or fixed rate for a home in a high-cost area that exceeds conventional mortgage limits
- Multiple Property: An adjustable- or fixed-rate loan for buyers who own multiple financed properties
Learn More: 5 Types of Mortgage Loans: Which One Is for You?
Here’s a look at Flagstar Bank home loans:
| Mortgage programs |
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| Fixed-rate loan terms | 8 to 30 years |
| Variable-rate loan terms |
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| Min. credit score |
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| Min. down payment |
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Flagstar Bank mortgage refinancing review
Best for:
- Borrowers looking to cash out some equity or take advantage of lower rates with a rate and term refinance
- Borrowers who can eliminate life-of-loan FHA mortgage insurance by refinancing into a conventional mortgage
- Borrowers with ARMs who want to lock into a lower fixed rate
Flagstar Bank currently offers refinancing, including cash-out refinancing. A cash-out refinance pays off your existing mortgage and pays out cash. You can borrow up to 80% of your home’s value.
For a cash-out refinance, you can choose from any of Flagstar’s mortgage products you qualify for. But this loan has more risk than a purchase loan because you’re also drawing cash, so the rate can be slightly higher — and in the case of an FHA cash-out refinance, so is the minimum credit score.
| Mortgage programs |
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| Fixed-rate loan terms | 8 to 30 years |
| Variable-rate loan terms |
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| Min. credit score | 620 for all cash-out refinance products |
Compare multiple lenders first
Flagstar can be a worthy contender among mortgage lenders, but keep in mind the limited number of physical locations and restricted geographic availability for home equity loans or home equity lines of credit if that might be a deal breaker.
And you should never rush in before you’ve done some comparison shopping to make sure you’re getting the right loan for you.
Although Flagstar Bank is not one of our partner lenders, Credible makes it easy to compare personalized loan rates from multiple other lenders all by filling out just one form. You can complete the whole process, from pre-approval to closing, all without leaving our site.
Credible makes getting a mortgage easy
Flagstar Bank isn’t one of our partner lenders. But you can use Credible to see if you qualify for an instant streamlined pre-approval letter in 3 minutes from other lenders who offer mortgage home loans.
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