Flagstar Bank Logo
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10 User Reviews

6.2

Overall Score

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LAST UPDATED: July 14th, 2022

Flagstar Bank, founded in 1993 in Troy, Michigan, is a full-service banking institution with several branches and loan centers across the United States. As the sixth largest bank mortgage originator, Flagstar Bank offers a wide variety of home loan types, including home renovation and construction loans, as well as various specialty loans.

Continue reading for more information about this mortgage lender or jump down to read Flagstar Bank mortgage reviews from real customers.

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The Good

  • Variety of Loan Types
  • Online Application Process
  • Mobile App

Variety of Loan Types

Flagstar Bank offers a variety of basic loan types that are typically offered by other mortgage lenders, including fixed rate mortgages. The banks also offers various government-insured loan types:

  • FHA Loan 
  • VA Loan
  • USDA Loan
  • State Housing Finance Agency (HFA) Loan

Flagstar Bank offers a variety of specialty loan options:

  • Renovation Loan — designed to provide funding for a home purchase or refinance and to make property renovations.
  • Construction Loan — two construction loan options are available: Construction Draw and One-Close, providing funding for a home build.
  • Multiple Property Loan — designed for borrowers with 7–10 financed properties.
  • High Balance Loan — mortgage product for home purchases that exceed typical/conforming loan size limits.

To provide mortgage options to a wider range of homebuyers, Flagstar Bank offers various loan programs that feature low down payment options, flexible qualifications, and savings opportunities:

  • Destination Home™ Mortgage — available in select areas with flexible qualifying criteria and no down payment
  • Detroit Land Bank Authority — available in Detroit neighborhoods with flexible qualifying criteria
  • Community Comeback Program (Pontiac, Michigan) — a program for Pontiac homes to bridge the gap between price and appraisal
  • Fannie Mae HomeReady® and Freddie Mac Home Possible® — loan programs with favorable purchase terms for all income levels
  • Fannie Mae RefiNow™ and Freddie Mac Refi Possible℠ — refinance loan programs with favorable terms for all income levels
  • Loans for Borrowers Without Social Security Numbers — a loan program for those with no social security number (SSN). A borrower can instead use their Individual Tax Identification Number (ITIN) and must meet all other qualifications
  • Flagstar Gift Program — qualified first-time buyers receive up to 3% or $5,000 toward their down payment or closing costs with no repayment obligation
  • Flagstar Grant Program — available through the Detroit Land Bank for qualified borrowers to receive up to $2,500 in down payment assistance and up to $7,500
  • MSHDA Down Payment Assistance Program — available through the Michigan State Housing Development Authority for Michigan homebuyers looking to save on their down payment and closing costs
  • Accessibility Modifications Program — grants up to $12,000 for seniors and individuals with permanent disabilities
  • Neighborhood Impact Program (NIP) — grants up to $7,500 for low-income homeowners to pay for home repairs
  • Homeownership Opportunities Program (HOP) — grants up to $8,000 for first-time homebuyers to cover a down payment and closing costs

To determine which loan type or loan program is available in your area and best for you, you can speak with a Flagstar Bank loan advisor.

Online Application Process

The Flagstar Bank application can be started online and will ask for information, including personal, property, employment, and income information.

Mobile App

Flagstar Bank provides its borrowers with a mobile app that is compatible with iOS and Android devices.

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The Bad

  • Undisclosed Information

Undisclosed Information

Flagstar Bank has not disclosed minimum credit score requirements on its corporate website, making it difficult for borrowers with less-than-perfect credit to have an idea of whether or not they've got a shot at qualifying for a loan.

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The Bottom Line

Flagstar Bank offers a variety of loan types, providing more flexibility for first-time or low-income homebuyers. The application process can be started online and borrowers can receive personalized assistance from a qualified Flagstar loan advisor.

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Star Rating

4.2

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10 Reviews

Review Breakdown

5 grade

60%

4 grade

20%

3 grade

10%

2 grade

0%

1 grade

10%

Sentiment Criteria

Value

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Quality

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Service

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Trustworthiness

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Review Source

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David Lopez Jr Phoenix, AZ

They have been great managing my mortgage. They bought the mortgage after getting our initial loan as a FreddieMac loan. They have been helpful and communicative.

2 months ago

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Steven Whites Salt Lake City, UT

This mortgage company is hands down the best company I have used for making my mortgage payments. They do not hurry up and sell your loan off onto another company, hence having to resign up on yet another website to put your payment info in, etc. No cons really as of yet. I've been changed over to this company for almost a year now and am excited to keep them as they are very accommodating.

9 months ago

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Luke Swierczynski Troy, MI

I have a credit card through them so when I got an email about mortgage rates at an all time low I gave them a call. They were both slow and not well priced. Took them a long time to get me started in their process even after responding to their email to get started. Finally got through the beginning of their process and got what I would consider not a competitive offer. Called a local lender and had an estimate same day for less so I went with their competitor. Based on the experience I wouldn't reach out again, but if they had a loan program specifically for me I might consider the amount of time it'd take to process.

10 months ago

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Patrick L Sugrue Ooltewah, TN

We have been with Flagstar since 2016. They have a good process for our mortgage payments the statements arrive with plenty of time to pay them and they accept our e-payments from our C. U. I gave the 4 stars since we were notified there was a data breech with our information. They did offer service to manage the credit reports and were responsive regarding that. All in all, we think they do a good job. We don't have access to any of their in house services since they aren't located in our state. I have called their office a couple times and the response time was reasonable and the people friendly and competent.

1 year ago

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Bob Nakon Pinckney, MI

One rarely needs to contact their mortgage company. That said, when you do need an answer about your mortgage, you need to speak to a knowledgable person . Flagstar Bank people are there to help when I need them and that is a good feeling.

1 year ago

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Rebecca Wilhelm Ponte Vedra, FL

Flagstar is an easy bank to work with when it comes to my mortgage. They are always available to answer questions, help in times of need and are proactive in being supportive.

1 year ago

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Squeaky Chicago, IL

Skeevy, horrid organization that "lost" my paperwork every 90 days when I tried to apply for relief during the Great Recession. No one answered the phone for more than a year. Voicemail boxes were purposely full so messages could not be left. Lied repeatedly in writing to me and to my attorney. Should be destroyed by the federal government.

4 years ago

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George Homestead, FL

Marvelous. Good customer service. Always open to help

2 years ago

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Alfredo Heredia

Provide a standard service. Website could be improved to make it easier to use

4 years ago

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Marlene Taylorsville, UT

My loan was sold to them and the payment went down by $100.

4 years ago