Flagstar Bank Mortgage Review 2025

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.

In 2024, Flagstar Bank announced it’d be selling its mortgage servicing business to Mr. Cooper, pivoting its focus to mortgages for banking customers and wealth clients.

Pros and cons of 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, and selling servicing operations to Mr. Cooper.)

• 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.

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.

Flagstar offers standard and cash-out refinances for homeowners with enough equity.

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.