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Flagstar Bank Mortgage Review

Reviews 51
Flagstar Bank
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Flagstar Bank
Flagstar Bank
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Reviews 51
Patrick Sather
Aug. 30, 2022
3 min read
Patrick Sather
Flagstar Bank Summary
Flagstar Bank offers loans for new purchases and refinances and HELOCs in all 50 states. It features a variety of loan types to choose from, from conventional and specialty loans, to jumbo loans, government-backed loans, and loans for first time buyers. Loans are also available for people with specialty professions and borrowers with no SSN, low credit history, and low income. Apply online and access your loan 24/7 through its MyLoan portal.

Pros

  • Programs for first-time home buyers
  • Professional loans
  • Home equity lines of credit

Cons

  • Complaints about loan processing errors
  • Home equity loans unavailable in some states

Flagstar Bank Flagstar Bank Visit Flagstar

Overview

Based out of Troy, Michigan, Flagstar Bank is the 6th largest bank loan originator in the United States. It originates loans in all 50 states and offers a wide variety of loan types. In addition to conventional mortgages, it also offers specialty loans, jumbo loans, government-backed loans, loans for first-time homebuyers and loans for those in specialty professions. Programs are also available for borrowers with low income, no Social Security Number, or poor credit scores. You can apply online and service your loan 24/7 through its online MyLoan portal. 

It is important to note that many of its community lending and down-payment assistance loans are available in limited locations, and home equity loans are not available in some states.

Suitable for

Flagstar is a great solution for homeowners in all 50 states. With Flagstar's flexible requirements and down payment assistance programs you may still be able to qualify for a mortgage even if you have a lower credit score or income and can’t afford a conventional or 3-5% minimum down payment.

Types of Loans/Products

One of Flagstar’s notable features is its many options. It offers mortgages for existing and new homes as well as renovation and new home construction loans, home equity loans, and lines of credit. With Flagstar, you can refinance or apply for conventional and jumbo fixed-rate or adjustable mortgages along with FHA, VA, and USDA loans. Depending on your eligibility, you may also qualify for one of its community lending loans, which offer down payment assistance and feature flexible mortgage requirements. 

Flagstar offers the following loan types.

  • Conventional Loan. Conforming loans that require a 620+ credit score and a 3%-20% down payment.
  • Jumbo Loan. Home loans that exceed conforming loan limits of $647,200 ($970,800 in some areas) up to $3 million with a 15%-20% down payment and minimum credit score of 700.
  • FHA Loan. Loans backed by the Federal Housing Authority for first-time home buyers with a 3.5% minimum down payment.
  • VA Loan. Available to active duty and retired military borrowers with no down payment or monthly mortgage insurance premium requirement. 
  • USDA Loan. Loans for properties in eligible rural areas as determined by the U.S. Department of Agriculture. Come with full financing and no down payment.
  • Professional Loan. Loans for CPAs, and medical, legal, and other professionals which allow for no or low down payments on loans up to $1,500,000.
  • Community Lending and Home Loan Programs. Loans that offer down payment assistance and flexible mortgages for eligible borrowers in certain areas, including those with low incomes, no Social Security Number, and low credit scores.

The application process

Here are the steps for getting a mortgage through Flagstar.

1. Gather financial documents.

To get started, you’ll need to answer a few questions and provide Flagstar with information including your Social Security Number, employment history, income, and housing requirements. Be prepared to provide financial documents including W-2s, 1099s, pay stubs, bank statements, and proof of any other income.  

2. Pre-approval.

During the pre-approval process, Flagstar will determine how much house you can afford.

3. Loan review.

Once you’re pre-approved, you’ll have an opportunity to review your mortgage details and make adjustments. Upon receiving and accepting your home offer, Flagstar will pass your application along to its underwriters for approval and to lock your interest rate. 

4. Loan approval.

If everything is in good order and you agree to the terms, Flagstar will work to approve your loan and prepare your closing documents. 

5. Close and receive your funds. 

Once you close on your loan, Flagstar will wire funds to purchase your new home. 

Repayment terms

You can get a quote by contacting Flagstar’s Consumer Direct Loan Officer team. Rates and terms vary depending on your loan type and amount, credit score, and zip code. 

Fixed-rate mortgages are available in 10-, 15-, 20-, and 30-year terms as well as adjustable rate mortgages. 

Flagstar gives you the option to buy points to lower your APR, although doing so means you’ll pay higher closing costs. The minimum credit score for most loans is 600, although some specialty loans require a higher score, while certain community lending and government loans start at 580. 

Help & Support

Flagstar loan servicing support is available via chat and phone from 7:30am-8pm ET Monday-Friday and 7:30am-4pm ET on Saturday. Mortgage lending support is also available via phone and chat from 8am-10pm ET Monday-Thursday, 8am-8pm ET on Friday, and 10am-5pm ET on Saturday. 

Additionally, its MyLoan online loan servicing portal is available 24/7, or you can submit questions via email through the secure message portal on Flagstar’s website. 

Summary

Overall, Flagstar is worth considering if you’d like to have a wide number of options to choose from. Its bevy of loan types means that you’re almost certain to find a loan that works for you. Moreover, Flagstar’s flexible requirements and down payment assistance programs mean that you may still be able to qualify for a mortgage even if you have a lower credit score or income and can’t afford a conventional or 3-5% minimum down payment.

FAQs

Where can I get a home loan from Flagstar Bank?

Flagstar Bank processes loans in all 50 states

Does Flagstar Bank offer mortgages to non-U.S. citizens? 

Yes. Flagstar does not require proof of U.S. citizenship when processing loan applications

Physical Address

5151 Corporate Drive

Troy,  MI 48098

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Methodology

This review was compiled with information from Flagstar Bank’s official website and third party reviews.

Patrick Sather
Written by
Patrick Sather
Patrick Sather is an award-winning personal finance writer and licensed broker who has worked for some of the largest financial firms in the United States, including TD Ameritrade and Pacific Life. A graduate of the University of Nebraska in both Economics and International Trade and English, his articles on life's most common financial decisions and quandaries are straightforward, practical, and always easy to understand.

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Trustpilot reviews
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customer
2 months ago
Excellent Financial Mortgage Company
I am the owner of 2 businesses, one of which is a property company, in addition to being a busy wife and mother. We are in the middle of a remodel and I made the mistake of not having transferred the money into the right account in time. I called Flagstar on a Saturday afternoon and within a short, very pleasant few minutes Flagstar had resolved my issues. Reena C. was my customer service representative and I cannot say enough great things about her professionalism and knowledge. I deal with a variety of financial institutions frequently. Flagstar has a great user friendly website which I wish some of the other businesses could employ and when I needed to talk with someone they were incredibly
Amy Devia
1 year ago
I have feels for Flagstar...
This is my first all-by-myself house! I bought it in 2016 and my mortgage was sold to Ennerbank... some time before covid. In my world, a mortgage company is a mortgage company is a mortgage company is... is what I USED to not know I always thought! Then along came covid... and suddenly my mortgage company became very real and human... I do not know if they have one person always assigned to me. That doesn't seem possible, as they sometimes sound different genders. I'm not judging anyone's journey. They've always been so kind and personable, with me! It feels like they care and they're keeping up. The last person I spoke with, on October 17th, felt like a friend; we had already wrapped everything up... then they touched on where I was, the last time we spoke, and asked how I was doing. How I was doing. It just made me realize... They could make it all business. But they do care. I am just a person out of a million people, sure. But they are keeping up. They've been SO easy to work with, and I've hit a few bumps. I got scared, handled things a little poorly, and they honestly did help me. I appreciate them so much. These last several years, I feel like I've developed a relationship with my mortgage company... and I love them... and I like it
ra
rachel
3 years ago
flagstar has been awesome
flagstar has been awesome. we use them for our credit card and mortgage. love that i can call customer service even on weekends and they can assist with questions or requests. we even pay bills through them. one stop shop.
MW
MW
2 years ago
I've used flagstar for banking for many…
I've used flagstar for banking for many years and have generally been satisfied with them. However their recent handling of their (2nd in a year) security breach has me wondering what are their priorities. The breach occurred in Dec 2021 but I was not notified until June 2022. "We determined that one or more impacted files contained your ss#, acct#, name, phone ...". What are they doing about it -- offering a 2 year credit monitoring program with a single credit bureau. "If a new line of credit is applied for in your name you will receive an alert and you may call a specialist who will help you determine if it is an indicator of identity theft". "If you are a victum of identity theft a specialist will work in your behalf to resolve related issues." I would feel a lot better if they offered insurance to repay me for any monetary losses.
MJ
May Johnson
4 months ago
Overall Experience & Expectations
We've been flagstar account holders for awhile, Now we just hold on to the account J.I.C. I myself have experienced what I feel is pure nosiness. Having direct deposit may not notate the exact name of the company making the deposit, and one time I was asked Where do you work!?🤔🤨. I wasn't trying to get indignant since flagstar does have "ALL" personal information, I answered. Most recently we felt the teller/associate wasn't at all friendly. Seemed just to the point, Not a crack of a smile!. No small talk, we even said happy holidays and received No Response🤔. I know not everyone may celebrate the holidays for whatever their reasons are. But we didn't even receive a have a nice day. Even if for whatever reason, they became irritated with us, the emotions shouldn't have shown it!.. I have noticed a change in staffing, But when the account was first opened the first staff members that were there, were very friendly in greeting upon entering and departing. Should covid19 be the blame for this as well!??. If some of the staff thinks they give the best experience, they need to rethink things and should be observed by upper management. This is a True and Sincere experience.....
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