Flagstar Bank Mortgages

Flagstar Bank Mortgages Reviews

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About Flagstar Bank Mortgages

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Flagstar Bank (NMLS #417490), a subsidiary of Flagstar Bancorp, Inc., is a full-service mortgage lender that offers a wide variety of purchase and refinance products, including conventional, FHA, VA, USDA and jumbo loans. The company provides loans to borrowers in all 50 states, and you can apply for its mortgages online, in person or over the phone.

    Pros & Cons

    Pros
    • Down payment and closing cost assistance
    • Available in all 50 states
    • Pre-qualify without a hard credit check
    Cons
    • Little to no fee information online
    • Few in-person branches

    Rates

    Flagstar Bank is somewhat transparent about its starting rates, but you’ll need to request a rate quote online to view these — the company doesn’t post the starting rates for its mortgages on its website. The rate quote request includes a few simple questions regarding your desired loan type (purchase or refinance), home purchase price, loan amount requested, down payment amount and ZIP code.

    Over the past three years, Flagstar Bank’s average home purchase rate has been about on par with the national average. In 2019, it was 0.15% higher; in 2020 it was 0.1% higher. In 2021, it was right in line with the national average.

    Keep in mind that interest rates depend on various factors, like the borrower’s credit score and debt-to-income ratio. Borrowers with high credit and low DTI ratios typically get the best rates available.

    Flagstar Bank offers both fixed-rate mortgages and adjustable-rate mortgages (ARMs). Fixed-rate mortgages provide a predictable monthly payment, while ARMs may offer a low interest rate for a short period of time. Most borrowers prefer the stability of a fixed-rate mortgage, but you may consider an ARM in certain circumstances — for instance, if you plan to sell your home in a few years and can get a low introductory rate. Before you decide, you’ll want to consider your short- and long-term financial goals.

    Flagstar Bank Mortgages average home purchase rate vs. national average

    Information pulled from public Home Mortgage Disclosure Act data. Rates reflect noncommercial home purchase loans only.

    Application process

    Flagstar Bank allows you to pre-qualify online without a hard credit check, and you can check rates and speak to a loan officer before you begin your application. You can also move straight to the loan application and complete it online.

    If you’re purchasing, you’ll need to provide information about your estimated purchase price, down payment amount and credit score. Be prepared to answer questions about your assets and income — Flagstar Bank uses this information to determine your loan amount.

    If you’re refinancing, you’ll provide information about your refinancing goals, the estimated value of your home and your current loan balance.

    For both purchasing and refinancing, you’ll also be required to input your contact information so a loan officer can reach out to you. The company may ask that you upload certain financial documentation, including pay stubs and tax returns.

    Once your application is complete, you could receive a preapproval decision in as little as one to two days.  Flagstar Bank services its own loans, so you could work with the same company until you decide to sell or refinance.

    Flagstar Bank Mortgages application features

    Loan types

    Flagstar Bank offers a wide variety of loans, including conventional (with fixed or adjustable rates), FHA, VA, USDA and jumbo loans. The company also offers specialized loan programs for new construction (with a single-close option for construction-to-permanent) and home renovations. Its loan terms range from eight to 30 years.

    Flagstar Bank advertises loans for licensed professionals in specific fields of work. The company’s website doesn’t give details about this type of loan, so you’ll need to contact Flagstar Bank to see if your profession qualifies.

    In 2021, borrowers initiated 49,780 home purchase applications with Flagstar Bank. Of those applications, no preapprovals were denied. About 17% of these applications were denied, which is a higher denial rate than the industry as a whole sees (about 8%, as of publishing). Ultimately, about 75% (37,316) of these applications closed.

    Loan applications for home purchases only by year

    Information pulled from public Home Mortgage Disclosure Act data. Includes conventional, USDA, VA and FHA mortgages.

    Refinancing

    Over the past two years, Flagstar Bank has seen an increase in the number of refinance loans it originates. In 2021, about 63% of its loans were for refinances and cash-out refinances combined (compared with just 42% in 2019).

    This increase in refinance loans wasn’t unique to Flagstar, though; it was an industry-wide trend. When interest rates dropped to historic lows in 2020 and 2021, many borrowers chose to refinance to get a better rate on their existing loans — even small rate decreases can mean significant interest savings over the life of the loan.

    Since 2021, rates have been steadily rising to reach 10-year highs. For this reason, fewer borrowers are expected to refinance in 2022.

    Home purchase vs. refinance loans by year

    Information pulled from public Home Mortgage Disclosure Act Data. Includes conventional, USDA, VA and FHA mortgages.

    HELOC and home equity loans

    Flagstar Bank offers both HELOCs and home equity loans. However, some products are not available in all areas.

    The HELOC has a 10-year draw period and a 20-year repayment period. Line of credit limits range from $10,000 to $1 million, depending on your available equity and the loan-to-value ratio. Flagstar Bank lets borrowers choose how they repay their HELOCs, either with interest-only payments or principal and interest payments. With principal and interest payments, you’ll pay off the principal sooner and incur fewer interest charges over the long term.

    In most cases, you’ll pay closing costs when you open a HELOC. However, with a Flagstar Bank HELOC, you won’t have to pay a portion of the closing costs if you keep the HELOC open for at least 36 months. The company offers a 0.5% rate discount to borrowers who set up autopay with their Flagstar checking or savings account.

    Home equity loans are available in loan amounts ranging from $10,000 to $1 million. Borrowers can choose between 10-, 15- and 20- year loan terms. The company also offers a 0.25% rate discount for borrowers that use autopay from a Flagstar Bank account.

    Keep in mind that both HELOCs and home equity loans come with added costs and fees, so you’ll want to consider how and when you would use the funds. A loan officer can help you weigh the pros and cons.

    Requirements

    Flagstar Bank doesn’t publish borrower requirements on its site, but typical requirements for a conventional loan include a credit score of at least 620 and a 3% down payment.

    Government-backed mortgages, like FHA, VA and USDA loans, typically have lower credit score requirements. Usually, you need a score of at least 500 to qualify for an FHA loan, but you’ll need to offer at least a 10% down payment if your credit score is below 580.

    Minimum credit scores for VA and USDA loans are usually set by the lender. You may need a 580 credit score for a VA loan and a score of 640 for a USDA loan. Both options have no down payment requirements.

    National mortgage requirements by type

    For other loan types, read our jumbo loans guide.

    Cost and fees

    Flagstar Bank doesn’t publish the fees it charges for loan originations. The company does provide a closing cost calculator on its website, where you can plug in your loan amount and receive an estimate for total closing costs.

    After you’ve been preapproved for a mortgage, you’ll receive a much more specific Loan Estimate that outlines every line item of your closing costs, including these lender fees. This estimate is more accurate because it takes into account your specific situation.

    Flagstar Bank may charge an origination fee, which is typically 0.5% to 1% of the loan amount. Other closing costs may be appraisal fees, real estate taxes, attorney fees and mortgage insurance premiums. In total, closing costs for a home purchase may account for 2% to 5% of the loan amount.

    Flagstar Bank offers various closing cost and down payment assistance (DPA) programs. Some of these include Fannie Mae’s HomeReady and Freddie Mac’s Home Possible loans. The company also provides its own programs, like Flagstar Gift, which gives eligible first-time homebuyers up to 3% or $5,000 to use toward a down payment or closing costs.

    Some of these programs are only available in Michigan, so you’ll need to contact a Flagstar Bank representative for more information about eligibility requirements.

    FAQ

    What is Flagstar Bank Mortgages?

    Flagstar Bank is a full-service mortgage lender based out of Troy, Michigan. The company originates and services a variety of loan types, including conventional, FHA, VA, USDA and jumbo loans. It also offers home equity loans, HELOCs and refinancing. You can apply for a mortgage loan online, by phone or in person at one of the bank’s branch locations.

    Is Flagstar Bank Mortgages legit?

    Flagstar Bank is a legitimate mortgage lender that originated over $34 billion in loans in 2021.

    Where is Flagstar Bank Mortgages available?

    Flagstar Bank mortgages are available to borrowers in all 50 states. The bank operates in-person branches in five states: Michigan, Indiana, California, Wisconsin and Ohio.

    Flagstar Bank Mortgages Reviews

    Stars Rating

    • 5%
    • 0%
    • 0%
    • 1%
    • 94%

    Popular Mentions

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      How do I know I can trust these reviews about Flagstar Bank Mortgages?
      • 4,458,907 reviews on ConsumerAffairs are verified.
      • We require contact information to ensure our reviewers are real.
      • We use intelligent software that helps us maintain the integrity of reviews.
      • Our moderators read all reviews to verify quality and helpfulness.
      Page 1 Reviews 0 - 10
      Customer ServiceStaffLoan ProcessTransparency

      Reviewed Feb. 1, 2024

      I am in awe by the lack of communication and utter disrespect for their clients. I was preapproved for a loan, and chose to use them for a loan on an investment property. I submitted all paperwork required in a timely manner, but can't say the same for the bank. Everything was delayed, no communication even when my representative consistently reached out to them, leading me to have to request an extension from the seller because I still had no information from the bank about the appraisal, loan, nothing at all. It was complete crickets. The seller agreed to extend two more weeks. A week before the second date for closing, I get an initial disclosure from the bank with all the estimates, with the information incorrect.

      I finally get the appraisal three days before closing, and two days before closing, we hear from the bank to say that items needed to be fixed in the home, and another inspection had to be done to make sure everything is up to their standards before they would give us the fundings. TWO DAYS BEFORE THE SECOND CLOSING DATE! The seller was angry, and refused any extensions to clear up the absolute mess the bank made due to their complete lack of communication and incompetence. To throw salt on the wound, we are also out of our escrow money, again due to the bank's incompetence.

      Loan Process

      Reviewed Jan. 3, 2024

      We received a letter in the mail saying that to start this year off we needed 100 more into escrow. They did not give us an option just to pay the hundred and on top of that when they added it to our loan instead of it being $10 a month more it raise our payment $20 a month more which is actually $240. I don't like a mortgage lender automatically making decisions for me. There should be options in this situation. And not only that but I guess Flagstar Bank has something to do with the Lakeview mortgage or something or they've sold it again. I don't even know what's going on at this point. One thing is for certain. I will never use Rocket mortgage again cuz they're the ones that got me in this nightmare.

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        Reviewed Dec. 27, 2023

        I purchased my house in approximately February of 2021. My disclosed payment, including escrow, at that time was $1577. My first payments were actually $1398 due to some unknown adjustments. My newest bill including escrow is $1954. This equates to a $400 a month increase due to their mis-management of my escrow in 2 years. This increase should not be allowed as their disclosure was false and my monthly payments should not have increased by that amount. I understand escrow can change year to year but at $400 a month is not acceptable. They continue to mis-manage the escrow, I always have a large shortage which last year I had to have reduced by extending the payments and now it has gone up again. I would not do business with them.

        Verified purchase
        Customer ServiceLoan ProcessRates

        Reviewed Nov. 18, 2023

        They acquired my mortgage 12/2022. It has been nothing but problems since that day. I begging my old lender to please get my loan back. And I have no idea how to get away from them. They acquired my loan with the terms I had with Cardinal Financial. Well they have collected escrow for my flood policy all year. Now have removed my flood policy from my escrow and refuse to pay my flood policy. Then send me a letter that it was voluntarily removed. I have all the documents and recorded calls with me begging them to pay my flood insurance. I never once gave anyone permission to remove my grandfathered in very inexpensive flood policy that they are trying to make me lose.

        I am already receiving treatment for PTSD and they are causing so much unnecessary stress to my life. I have never had high blood pressure. But every time I have to deal with them, when I get to my treatments. My blood pressure is through the roof. Other than that my BP is normally perfect. If anyone has any idea how to get away from this bank. PLEASE LET ME KNOW! Without refinancing because my interest rate is a lot lower than they are running today. Definitely the worst bank I had ever dealt with. Praying my attorney can get them where the sun don't shine their pockets!

        Reviewed Nov. 11, 2023

        Flagstar Bank is the absolute worst. Our mortgage was sold to this and the website interface is not only terrible, I constantly have to have some other form of 'verification' every single time I log in. I have my mortgage set to auto-pay, which I guess is a nice feature. Our home value skyrocketed and instead of dropping our PMI when I put in our request, they told me I'd have to make a check payable to them for $190 to have someone come out inspect the property. I would rather burn $190 than give them another cent. I will NEVER voluntarily refinance or use this company again in the future. I will also resubmit a request to drop PMI every single month until they finally do it. Let them pay someone to continue to review my documentation.

        Profile pic of the author.
        Customer ServiceStaff

        Reviewed Oct. 29, 2023

        Pretty sure the people who rated Flagstar Bank a 5 are employees. I’ve never read a good review of Flagstar Bank, and have never written a good review for Flagstar Bank either. Horrible bank, to call it a bank is like saying the Grand Canyon is a ditch. Awful company, rude staff working from their homes, can you hear the dogs and the babies crying. Please, do not use this place for your mortgage if you can help it. Read all of the reviews in other sites, which give it a zero at best.

        Customer ServicePunctuality & SpeedStaffLoan ProcessTransparency

        Reviewed Oct. 25, 2023

        Had to share my experience. Made a payment, took 18 days to process (No one could explain to me why it took so long, customer service rep very unprofessional...) which would cause a late fee to occur and possible bad credit reporting for my account. Make sure when you make your payments on their website that you screen shot the payment, it's called police and protect when making your payments. I am reading the reviews and I see there are so many others having the same problem,,,, If you speak to customer service rep before ending the call make sure the notes are accurate concerning your conversation.... Police and Protect your account.... You can not make this up.....IJS.

        Customer Service

        Reviewed Oct. 24, 2023

        Like many of your other terrible reviews have said, our mortgage was sold to Flagstar, and if you are making a simple monthly payment, the MyLoans site works. No problem! But when you are trying to budget and want to make bi-weekly payments, the site needs to be re-evaluated -- something is seriously wrong on the backend. I've been trying to get bi-weekly setup since September!! I've called 3-4 times since September, and twice already today (10/24/23)...and now, I'm about to call every time I receive a text that says "We encountered an issue while trying to schedule your payment..." **.

        Customer ServicePunctuality & Speed

        Reviewed Oct. 17, 2023

        Flagstar is awful. They bought my original mortgage and then bought it back after I refinanced. Then started sending me letters that my flood insurance coverage was not enough even though I have multiple policies on my unit and I live on the top floor. As well when they previously had my first mortgage they didn't ask for more coverage, only this time. When I tried to call their help-line is automated and takes you in circles before I had to ask a real person on the online chat how to talk to a real person on the phone.

        I procured the needed coverage at a quarter of the annual cost that they were going to charge me to provide it for me, and kept on getting letters saying that my coverage was insufficient and on my statement they had the new charges added in. I reached out to them again, finally got a real person who could address my concerns on the phone and they said they saw where I had procured new coverage in excess of the amount desired and that my mortgage payment was not going to be impacted. That was two weeks ago.

        Today I received a letter that my coverage had lapsed and even though they knew I had coverage they were going to charge me for the month that I had lapsed. The month I was trying to call and ask why I needed it now for my new mortgage but not the previous to which I still do not have an answer. The amount over that they are charging me is a third of what I paid for the new annual coverage. Never missed a payment, never been late. This is a terrible organization.

        Customer ServicePunctuality & Speed

        Reviewed Sept. 28, 2023

        Our mortgage was sold to Flagstar Bank and we made our first payment to them in June. THEY LOST THE JUNE CHECK. Then our July payment was credited to June, August payment credited to July, September to August, etc. Every month we got phone calls, letters, etc. about our "late payments", which were never late. Their customer service is clueless. For four months we sent copies of our June payment cancelled check, with the Flag Star Bank endorsement on the back. Yesterday I got an email that basically said, "Oh, never mind". And we are still getting the recorded calls that we are delinquent. AWFUL bank!

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          Sources
          ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. To learn more about the content on our site, visit our FAQ page . Specific sources for this article include:
          1. NMLS Consumer Access, “ Flagstar Bank .” Accessed September 8, 2022.
          2. Origination Data, “ Flagstar Bank .” Accessed September 9, 2022.

          Flagstar Bank Mortgages Company Information

          Company Name:
          Flagstar Bank Mortgages
          Website:
          www.flagstar.com