Flagstar Bank Mortgage Review 2019

Flagstar Bank Mortgage Review 2019

Share: Rating: 4.1 stars out of 5

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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.


  • Instant, online quotes
  • Broad set of products
  • Knowledge source
  • Customized calculators


  • Physical presence
  • Customer review

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.

How Does Flagstar Mortgage Works

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. We love that they originate government-backed loans. These loans tend to have lower fees and more flexible requirements, which are a great option for many prospective home buyers.

Flagstar Mortgage 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.

Fixed Rate (Conventional) – 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.

ARM – Adjustable rate mortgages are 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.

FHA – Loans backed the Federal Housing Administration. With an FHA,  loan buyers who don’t have a long credit history, don’t have the greatest credit, or don’t have a large down payment can still be eligible for a home. Flagstar provides FHA buyers fixed rate mortgages from 10 to 30 years and adjustable rate for 3 or 5 years with a 3.5 percent down payment.

VA – 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.

USDA – 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.

HFA – 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.

Specialty Loans – 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.

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

Refinance – 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.

Home Equity and HELOC – are also 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.

Flagstar Mortgage Process, Pros & Cons

Flagstar Mortgage 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 elect to do the application completely online, you will still be assigned a mortgage professional to help you with the application and loan process.

What We Like

  • Instant Quotes: You can get an instant online quote with just a few pieces of information. Plug in the purchase price, down payment, loan amount and zip code and you be able to see current rates and what products you may be eligible for. No personal information or waiting for a rep to call you back, making it quick and simple to shop around. The same quote feature is available if you are looking to refinance.
  • Products: Flagstar offers all of the government-backed loans such as FHA and VA, along with more traditional mortgages products. They also say they are experts when it comes to renovation and construction loans.
  • Knowledge source: You will find a lot of helpful links on their website such as home loan FAQ’s, moving tips, and loan processing.
  • Customized calculators: Online tools like home buying and refinancing calculators are great ways for you to play with loan options. It’s a definite bonus that you don’t have to enter contact info in order to use these great features.

What We Are Missing

  • Physical Presence: Although licensed in all states, Flagstar does not have branches in all of them. They do have a network of broker’s to assist in getting you a loan, but you might not get to meet someone face to face. For some people who want face to face customer service, Flagstar falls a little short.
  • Customer Review: Looking into Flagstar’s customer review we see that they don’t have the most stellar ratings. Customers say they are lacking on their technology with frequent mobile app issues. Some mortgage customers have said that the processing of their loans isn’t efficient enough and closing on their home has been a drawn out process.

Should You Consider Flagstar Mortgage?

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.