Home Buying » Mortgage Lender Reviews » Flagstar Bank Mortgage Review 2021
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Flagstar Bank Mortgage Review 2021

Flagstar is best for any type of home buyer. Everyone can find a product to fit their needs with a suite of government loans, conventional mortgages, and even refinance options.

We may receive compensation from companies that appear on this page. This may impact how and where products appear on a page (including, for example, the order in which they appear). It doesn’t affect our unbiased editors’ opinions. our opinions are our own.

In This Review

Flagstar bank is currently ranked fifth largest bank mortgage originator and third largest savings bank in the nation. Within a few years they had expanded nationally and in 2000 they officially took the name Flagstar Bank with full service banking. Flagstar Bank offers a great advantage to potential borrowers by offering a wide variety of mortgage products. This allows them to reach more borrowers who are at any stage of their lives.

Overview

Flagstar is best for almost any type of home buyer. If you want to build a home or renovate you might find the added expertise of Flagstar to be chosen. Everyone can find a product to fit their needs with a suite of government loans, conventional mortgages, and even refinance options. They even boost to create flexible options for their customers. Checking out their rates and services are easy on their website.

You can use their mortgage calculator to explore your options without committing your personal information. If you can’t make it to a branch, you don’t have to worry. Flagstar has made their complete online application process easy to use.

If you are in a branch location you have the added bonus of getting full-service banking too.

flagstar-bank-logo-square

On Flagstar Secure Website

Funding Options

– Fixed / Variable Mortgage
– Mortgage Refinancing
– Government loans

Minimum Credit Score

620

PROS

CONS

Reputation - Customer Ratings & Complaints

  • A+ on BBB: BBB assigns ratings from A+ (highest) to F (lowest). BB ratings are based on information in BBB files with respect to factors such as business's complaint history with BBB, type of business, time in business, transparent business practices and more.
  •  J.D Power: Flagstar mortgage got 821 points out of 1000 points available – lower than the industry average. We considered 2020 J.D. Power’s primary mortgage as well as J.D. Power’s claim satisfaction survey.
  •  J.D Power offers the most comprehensive and independent study of customer satisfaction. The study aims to help consumers and issuers to understand user opinions and ratings of the largest mortgage origination companies. It covers customer satisfaction, terms,  communication, transparency and more.

J.D. Power U.S. Consumer Satisfaction Study 2020

How Does Flagstar Mortgage Works?

Flagstar Bank has over one hundred traditional branches mainly in Michigan and even a few in California. Flagstar’s mortgage division is licensed in all 50 states and has an extensive network of brokers all over the nation to assist you.

They also service and handle record keeping for about $104 billion in home loans. Flagstar prides themselves on finding the right solution and even customize a loan to fit the needs of their customers. Their standard underwriting fee for a mortgage is typically $1,000.

Products, Fees, And Conditions

Flagstar Bank offers several ways in which to obtain a loan by having physical branches and broker locations, as well as an online application process.

The most common mortgage among buyers. A fixed rate mortgage features a predictable payment and an interest rate that is locked in for the life of the loan. This type of mortgage makes it best for home buyers who plan on staying in the home for a long period of time. Flagstar Bank offers their fixed-rate loans in 15 or 30-year loan terms between 4-4.6 percent interest rates.

 Flagstar offers ARMs – fixed rates for the initial term of the loan, but after that, the interest rates may rise or fall depending on what the current rates are at that time. The initial locked in rate is typically lower than that of a conventional mortgage. This makes adjusted rate mortgages best for buyers who only plan on living in the home for a few years. If you want to take advantage of the lower rate and plan on staying in the home long-term, many buyers opt to refinance later for a fixed term prior to the adjustable rate setting in. Flagstar Bank offers ARM’s in 5, 7, and 10 year loan terms with interest rates between 4.1-4.8 percent. You can always use our calculators to decide whether fixed or ARMs is better for you.

Loans available to eligible retired, active, and reservist military members as well as certain family members. They are offered a fixed rate for 10 to 30 years and adjustable rate for 3 or 5 years. There is no payment with a VA loan and feature competitive interest rates and low fees.

 

The US Department of Agriculture determines eligible homes in rural areas. They are available in fixed-rate terms with no down payment at Flagstar Bank. 

Flagstar Bank participates in the Housing Finance Agency loan program. You can receive an HFA loan in a fixed rate 30-year loan term. They are only available in Michigan, Connecticut, and Wisconsin.

Include multiple properties, Jumbo fixed or adjustable, Professional Loan, Fixed Second Mortgage, and High Balance. These are all for buyers and home situations that don’t meet the norm requirements and situations. For more about these products, you will need to contact someone at Flagstar bank for details.

If you plan on building or renovating a home, Flagstar has several options for you.

There is plenty of refinancing options available to you here. If you are looking to lower your interest rate, lower the years left on your loan, or get cash out of your home refinancing could be the right fit for you.

Available from 2.7 to 4.9 percent interest rate. There a variety or loan terms available. These are best for those looking to use money from their home to get cash to make repairs or large purchases such as paying for your child’s college tuition.

Pros & Cons

Pros

Cons

Application Process

First you can prequalify for a home and find out how much you can afford. You can do this right online or face to face.

Next you will determine which mortgage product you qualify for with the help of a Flagstar Bank mortgage professional.

Then you can apply online, by phone, mail, or in person if possible.

The application process can also be completed online or face to face.

Flagstar offers uploading documents and e-signing your documents online to make it more convenient.

Even if you select to do the application completely online, you will still be assigned a mortgage professional to help you with the application and loan process.

Alternatives Lenders For Consideration

We’ve summarized some of the most popular mortgage lenders which can use as an alternative to the Flagstar Bank mortgage:

Quicken Loans is best suited for the borrower who embraces technology, who meets reasonable standards for credit score (620 – 740), and can qualify based on their income and ability to demonstrate down payment and reserve requirements for Quicken Loans’ programs. If you have low credit scores or unverifiable income, Quicken Loans is probably not where you would go for your financing. Otherwise, they are the industry gold standard.

Quicken Loans is a major nationwide lender with a variety of loan options that can meet almost any customer’s needs. Quicken Loans has an abundant and robust online presence. You apply from your phone, your iPad, any mobile device, as well as your computer and conduct the entire process online. There are many calculators and resources to help any borrower on their web site.

Quicken Loans does not have to boast about its Customer Service ratings (usually obtained by internal polling of customers) – it is a widely respected company by both consumers and major and minor ratings agencies (BBB.com, JD Powers & Associates, ConsumerAdvocate.org, etc.). Negative ratings can be found, but they are in the minority. 

LendingTree’s concept is unique but should be understood for what it is – a referral source for lenders. The consumer will not get their loan directly from LendingTree.

Due to the variety and depth of its financing and related options, one can find virtually every type of loan, as well as the lenders which fund those loans, without having to sort through hundreds of lenders.

Their proprietary Mortgage Rate Competition Index makes it easy to see which lender offers the lowest cost financing. This can save tens of thousands of dollars over the lifetime of the loan and may be worth extra credit pulls and incessant calls and texts.

LendingTree bills itself as an online exchange or marketplace for financing and it is, in that it makes the process of finding a lender simpler for the consumer, by aggregating the lenders suited for their request and their profile in one place.

Consumers would be advised to read all the fine print and ask about everything before providing their information. This is easily done by calling them at 1-800-813-4620. 

About Flagstar Bank

Flagstar Bank has over one hundred traditional branches mainly in Michigan and even a few in California. Flagstar’s mortgage division is licensed in all 50 states and has an extensive network of brokers all over the nation to assist you.

They also service and handle record keeping for about $104 billion in home loans. Flagstar prides themselves on finding the right solution and even customize a loan to fit the needs of their customers. Their standard underwriting fee for a mortgage is typically $1,000.

Mortgage Reviews Methodology

The Smart Investor’s selection of mortgage lenders for inclusion here was made based on our evaluation of the products and services that lenders offer to consumers who are actively shopping for the best mortgage. We also look at types of loans and what specific products are available. Finally, we look at the ability to get information online and to carry out online processes as well as customer service, rate information and complaints that have been filed.