Flagstar Bank Mortgage Review 2024

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.

Pros and cons of Flagstar Bank

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.

• Methodology

  To determine a mortgage lender's Bankrate Score, Bankrate rates lenders on a scale of one (1) to five (5) stars — with five (5) the highest rating — based on a variety of factors relating to the lender's products and services. To assign our ratings, we assessed each mortgage lender across three core areas:

  • Affordability: Annual percentage rate (APR) - 80%; assistance for first-time homebuyers - 10%; down payment - 10%
  • Availability: Loan products - 50%; licensing - 40%; credit score - 10%
  • Borrower experience: Rate transparency - 45%; customer service - 25%; convenience - 10%; days to close - 10%; rate locks - 10%; reputation (bonus)

  Learn more about our methodology.

  How we suggest lenders to compare

  To help you make the most informed decisions, our editorial team suggests two (2) alternative mortgage lenders for each lender reviewed in our comparison table. In most cases, these alternatives 1.) share the same strength (affordability, availability or borrower experience) as the lender reviewed; and 2.) rate highly for Bankrate Score. In the event more than two lenders meet these standards, we suggest the ones with the lowest APRs.