
Flagstar Bank Mortgage Review 2025
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At a glance

If you manage your money with Flagstar Bank, it’s worth starting your mortgage search here, too. If you’re not an existing customer, you might be better off elsewhere: Flagstar sold its mortgage operations in 2024.
Bankrate scores are objectively determined by our editorial team. Our scoring formula weighs several factors consumers should consider when choosing financial products and services.
Star ranking and total number reflects the lifetime customer reviews received while this lender has been an advertiser on Bankrate.
To help serve you with relevant information, the customer reviews shown are limited to only those that this advertiser has received during the past 12 months.
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
Nationwide availability
All U.S. states except Texas
Min. down payment
3% for conventional loans, 3.5% for FHA loans, none for VA loans and USDA loans
Flagstar Bank Mortgage overview
Flagstar Bank, a subsidiary of New York Community Bancorp, has been offering mortgages for more than 35 years. In addition to operating more than 400 branches, the bank has an online-only division that allows customers nationwide to explore a range of home loan options.
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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Expansive loan programs, including low-down payment options
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Ability to see rates without sharing personal information
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Online and branch service
Cons
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Focus on existing customers
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Multiple data breaches in the past few years
How Bankrate scored Flagstar Bank
Affordability: 5/5
Flagstar Bank tends to offer attractive mortgage rates compared to Bankrate’s averages. That, along with a range of low-down payment options, puts the bank at a perfect 5 out of 5 stars for affordability.
- Interest rates: Flagstar Bank’s mortgage rates were competitive at the time of this review. The loan offers on the bank’s website account for paying just one point, meaning its advertised APRs tend to be lower overall compared to those of other lenders.
- Down payment: Flagstar Bank boasts an impressive list of low- and no-down payment mortgage options, including the Destination Home Mortgage program that doesn’t require mortgage insurance.
- Closing costs: Flagstar Bank might charge a $1,295 origination fee depending on loan product and other factors.
Availability: 5/5
Flagstar Bank scores 5 out of 5 stars for availability thanks to a widespread footprint — every state except Texas — and myriad loan options. (Editor’s note: Flagstar announced in 2024 it’d be pivoting its mortgage business to focus on existing customers.)
- Home loans offered: Flagstar Bank’s depth of home loan offerings puts it ahead of some competitors. Its options include harder-to-find mortgages such as USDA loans, physician loans and mortgages for non-U.S. citizens.
- Footprint: The bank operates more than 400 branches in Arizona, California, Florida, Indiana, Michigan, New Jersey, New York, Ohio and Wisconsin.
- Where to find: You can apply for a mortgage with Flagstar Bank online, by phone or in person at a branch location.
Borrower experience: 4.5/5
We scored Flagstar Bank 4.5 out of 5 stars for borrower experience. The bank offers a speedy process and makes it easy to get custom rates via its website.
- Preapproval and application process: Flagstar Bank offers prequalifications in as little as five minutes, and its preapproval letters are good for 90 days. You can complete your full mortgage application online using the bank’s MyLoans tool.
- Transparency: Flagstar Bank displays current mortgage rates online without requiring you to share contact information. That’s a unique point of differentiation versus some other lenders.
- Customer service: You can reach Flagstar Bank’s customer service team at 844-451-8720, Monday through Thursday, 9 a.m. to 8 p.m. ET, Friday, 9 a.m. to 7 p.m. ET and Saturday, 10 a.m. to 3 p.m. ET.
Bankrate staff insights
Flagstar Bank reputation
Flagstar Bank had a “poor” rating on Trustpilot at the time of this review, and the bank came in below-average in J.D. Power’s latest mortgage servicing ranking. It has faced serious problems when it comes to protecting customer information, reporting three data breaches in the past two years.
Yet the bank has some high points, too, particularly giving back to its headquarters state of Michigan with initiatives like the Community Comeback Program that helps borrowers cover appraisal gaps in Pontiac.
What consumers say about Flagstar Bank
Overall, mortgage borrowers on Bankrate characterize their experience with Flagstar Bank as neutral, with one borrower calling it “just fine” and another referring to it as “pretty standard.” A few borrowers called out the bank’s lower rates as a key upside.
Lender compare
Compare Flagstar to other lenders
Mortgage rates and fees can vary widely across lenders. You can use the drop downs to explore beyond these lenders and find the best option for you.

NMLS: 417490
4.8
Bankrate scores are objectively determined by our editorial team. Our scoring formula weighs several factors consumers should consider when choosing financial products and services.
Recent Customer Reviews
4.2

NMLS: 1429243
5.0
Bankrate scores are objectively determined by our editorial team. Our scoring formula weighs several factors consumers should consider when choosing financial products and services.
Recent Customer Reviews
4.2
Refinancing with Flagstar Bank
Flagstar offers standard and cash-out refinances for homeowners with enough equity.
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 (including via FaceTime) or by phone at 844-451-8720.
Flagstar Bank customer ratings and reviews

NMLS: 417490
4.2
23 ratings
This lender has 23 recent reviews.
91% of customers would recommend this lender.
of 23 reviews
The consumer reviews posted on Bankrate.com ("Bankrate") are individual, subjective opinions of reviewers, and not of Bankrate. Bankrate does not endorse any of the opinions expressed by reviewers or any responses to reviews.
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In addition to collecting reviews on-site, Bankrate collaborated with third-party Slice MR to survey 750 homeowners nationwide in July 2024. Bankrate and Slice MR collected, averaged and presented responses to nine questions. Users received an incentive for their feedback. Responses are based on individual experiences, and therefore cannot be verified for accuracy. Submissions with user ratings that are materially inconsistent with written sentiment have been removed. User ratings are unedited and have not been reviewed or approved by lenders, nor do these ratings reflect Bankrate’s own reviews of these lenders.
To help serve you with relevant information, the consumer reviews shown below are limited to only those that this advertiser has received during the past 12 months.
Rates and terms of loan honored?
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Rates and terms of loan honored?
Closed mortgage with this lender?
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