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Flagstar Bank Home Loan Review

Flagstar Bank offers a well-rounded choice of mortgage purchase and refinancing loans at competitive rates.

Daria Uhlig Daria Uhlig Updated October 2, 2020

Our goal is to give you the tools and confidence you need to improve your finances. Although we receive compensation from our partner lenders, whom we will always identify, all opinions are our own. Credible Operations, Inc. NMLS # 1681276, is referred to here as "Credible."

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 review
  • Flagstar Bank mortgage refinancing review

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.

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
  • 5/1
  • 7/1
  • 10/1
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
  • 5/1
  • 7/1
  • 10/1
Min. credit score620 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.

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About the author
Daria Uhlig
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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Discover Student Loans Disclosure

The interest rates depicted on Credible represent the APR. The fixed interest rate is set at the time of application and does not change during the life of the loan. The variable interest rate is calculated based on the 3-Month LIBOR index plus the applicable Margin percentage. The margin is based on your credit evaluation at the time of application and does not change. For variable interest rate loans, the 3-Month LIBOR is 2.375% as of July 1, 2018. Discover Student Loans will adjust the rate quarterly on each January 1, April 1, July 1 and October 1 (the “interest rate change date”), based on the 3-Month LIBOR Index, published in the Money Rates section of The Wall Street Journal 15 days prior to the interest rate change date, rounded up to the nearest one-eighth of one percent (0.125% or 0.00125). This may cause the monthly payments to increase, the number of payments to increase or both. Please visit http://www.discover.com/student-loans/interest-rates.html for more information about interest rates.

Citizens Bank Disclosures

Student Loan Rate Disclosure

Variable rate, based on the one-month London Interbank Offered Rate (“LIBOR”) published in The Wall Street Journal on the twenty-fifth day, or the next business day, of the preceding calendar month. As of July 1, 2018, the one-month LIBOR rate is 2.10%. Variable interest rates range from 4.07%-12.04% (4.07%-11.94% APR) and will fluctuate over the term of the loan with changes in the LIBOR rate, and will vary based on applicable terms, level of degree earned and presence of a cosigner. Fixed interest rates range from 5.25%-12.19% (5.25% – 12.09% APR) based on applicable terms, level of degree earned and presence of a cosigner. Lowest rates shown requires application with a cosigner, are for eligible applicants, require a 5-year repayment term, borrower making scheduled payments while in school and include our Loyalty and Automatic Payment discounts of 0.25 percentage points each, as outlined in the Loyalty Discount and Automatic Payment Discount disclosures. Subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change. Please note: Due to federal regulations, Citizens Bank is required to provide every potential borrower with disclosure information before they apply for a private student loan. The borrower will be presented with an Application Disclosure and an Approval Disclosure within the application process before they accept the terms and conditions of the loan.

Citizens Bank - Refi - Disclosures

Education Refinance Loan Rate Disclosure:

Variable rate, based on the one-month London Interbank Offered Rate (“LIBOR”) published in The Wall Street Journal on the twenty-fifth day, or the next business day, of the preceding calendar month. As of July 1, 2018, the one-month LIBOR rate is 2.10%. Variable interest rates range from 2.75%-8.20% (2.75%-8.20% APR) and will fluctuate over the term of the borrower’s loan with changes in the LIBOR rate, and will vary based on applicable terms, level of degree earned and presence of a cosigner. Fixed interest rates range from 3.50%-8.69% (3.50% – 8.69% APR) based on applicable terms, level of degree earned and presence of a cosigner. Lowest rates shown require application with a cosigner, are for eligible, creditworthy applicants with a graduate level degree, require a 5-year repayment term and include our Loyalty discount and Automatic Payment discounts of 0.25 percentage points each, as outlined in the Loyalty and Automatic Payment Discount disclosures. The maximum variable rate on the Education Refinance Loan is the greater of 21.00% or Prime Rate plus 9.00%. Subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change. Please note: Due to federal regulations, Citizens Bank is required to provide every potential borrower with disclosure information before they apply for a private student loan. The borrower will be presented with an Application Disclosure and an Approval Disclosure within the application process before they accept the terms and conditions of their loan.