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