Flagstar Bank Home Loan Review September 2020

Flagstar Bank Home Loan Review September 2020

Our goal here at Credible Operations, Inc., NMLS Number 1681276, referred to as “Credible” below, is to give you the tools and confidence you need to improve your finances. Although we do promote products from our partner lenders, all opinions are our own.

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.

Read about:   Getting A Mortgage On A Second Home / Vacation Property

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
  • Conventional
  • FHA
  • VA
  • USDA
  • HFA
  • Jumbo
  • High cost
  • Multiple property
Fixed-rate
loan terms
8 to 30 years
Variable-rate
loan terms
Min. credit score
  • Conventional loan: 620
  • FHA loan: 500 with 10% down; 580 with 3.5% down
Min. down payment
  • Conventional loan: 3%
  • FHA loan: 3.5%
  • USDA and VA: 0%

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
  • Conventional
  • FHA
  • VA
  • USDA
  • HFA
  • Jumbo
  • High cost
  • Multiple property
Fixed-rate
loan terms
8 to 30 years
Variable-rate
loan terms
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.

Find Rates Now
Checking rates won’t affect your credit score

About the author

Daria Uhlig

Daria Uhlig is a contributor to Credible who covers mortgage and real estate. Her work has appeared in publications like The Motley Fool, USA Today, MSN Money, CNBC, and Yahoo! Finance.

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