Mortgage

Flagstar Mortgage Ranking for 2021 Evaluation

overview

Flagstar is a full-service bank with 150 branches in select states.

The lender offers a variety of mortgage solutions including conventional loans, jumbo loans, government loans, and personalized products for home renovations and new home projects.

Flagstar Bank starts new purchases and refinancing. You can also take advantage of home equity loans, but these are only available in select states.

Flagstar offers competitive rates and fees, and the lender's website makes it easy and convenient to compare loan programs and apply for a mortgage.

Flagstar mortgage rates

Mortgage rates and fees vary from lender to lender, so knowing your options and your comparison shop is important. This increases purchasing power and reduces your borrowing costs (both monthly and over the term of the loan).

The good news is that Flagstar's mortgage rates are comparable to other lenders. In 2020, the average 30-year interest rate at Flagstar Bank was 3.34%. This was a middle ground when compared to other top lenders like Rocket Mortgage (Quicken Loans) and Wells Fargo.

Average mortgage rates from major lenders

Flagstar Bank
Rocket mortgage
Wells Fargo
Liberty mortgage

30-year average interest rate, 20201
3.34%
3.20%
3.62%
2.92%

Median total credit costs, 2020
$ 3,530
$ 4,610
$ 3,370
$ 3,340

Median creation fee, 2020
$ 1,450
$ 2,950
$ 1,280
$ 0

Remember that averages are only a yardstick. Your own rate may be higher or lower depending on your circumstances. So get a custom quote to find out.

Average interest and fee data from public interest and fee records required by the Home Mortgage Disclosure Act (HMDA).

Confirm your new plan (July 1, 2021)

Flagstar Bank mortgage review for 2021

Flagstar Bank offers its customers a wide range of mortgage solutions to meet their individual needs. These include conventional loans, floating rate loans, fixed rate loans, and jumbo loans.

Additionally, borrowers can choose from several government-sponsored programs – including VA, FHA, and USDA – which typically involve little or no down payment. These programs make home buying or refinancing easier for some people, including first time home buyers and low to middle income borrowers.

However, conventional and government loans are not just for purchases and refinancing. You can also use these programs to fund home renovations or build a new home.

Flagstar also offers multi-property loans that allow real estate investors to purchase 7-10 properties with conventional financing.

Do you want to get cash out of your equity? In this case, you can apply for cash out refinancing or use a home equity line of credit (HELOC) or a home equity loan. Unfortunately, home equity solutions are limited to certain geographic areas.

Cooperation with the Flagstar Bank

Flagstar Bank's mortgage application process is simple and convenient. You can apply online, by phone or in person at a branch.

First, request a mortgage quote for comparison purposes, then fill out an application. Prepare to provide supporting documents to the lender, such as:

W2s, 1099s and tax returns for the last two yearsPayment slips for the last 90 daysBank statements for the last 60 daysDeterminations for other sources of incomeDriver's license

The lender will review your credit history and check your supporting documents and then issue a conditional mortgage approval.

You will receive a loan estimate as soon as you have a signed sales contract.

The underwriting process involves planning a home valuation, researching the title, and verifying that you've met all of your conditional approval requirements. You will receive your closing statement (with your actual mortgage terms) about three days before closing.

For your convenience, Flagstar Bank has an online portal where applicants can upload their documents. There is also an eClosing option for borrowers who don't live near a Flagstar branch.

Customer reviews of Flagstar Mortgages

Flagstar Bank receives an average customer rating of 4.34 out of 5 points on several rating platforms.

Overall, customers seem satisfied with Flagstar's level of service. Many say their loans were closed on time, usually within 30 to 45 days.

Additionally, mortgage rates and closing costs for multiple borrowers were lower than expected.

Customer service reviews from major lenders

CFPB Complaints, 20204
Complaints per 100 mortgages, 20205
J.D. Power Satisfaction Score, 20206

Flagstar Bank

69
0.03
821/1000

Rocket mortgage
391
0.03
883 / 1,000

Wells Fargo
554
0.05
840 / 1,000

Liberty mortgage
288
0.04
817 / 1,000

On the flip side, in J.D. Power only 821 out of 1,000 points. That was well below the average of 856 points.

This suggests that not every customer had a glowing experience. But as always, the service varies depending on the person and location.

Mortgage loan products at Flagstar Bank

According to a representative from Flagstar Bank, the home loan programs available include (along with their minimum requirements for approval):

Conventional loanso – Buy a home with just a 3% deposit. To qualify for a conventional loan, Flagstar must have a credit score of at least 620. Use a conventional loan for a new purchase, refinance, new construction, home renovation, or multi-family home purchase FHA loanso – These home loans are secured by the Federal Housing Administration and require a 3.5% down payment and a minimum credit score of 620. Use FHA financing for a new purchase, refinance, construction, or home renovation VA loan – These loans are VA loans Supported by the U.S. Department of Veterans Affairs are aimed at active service members of the military, veterans, National Guard members, reservists, and their eligible spouses. To qualify, you must have a credit score of at least 620. This is a no money loan. USDA Loan – This mortgage loan is insured by the U.S. Department of Agriculture. To qualify, you must buy a home in an eligible rural area. These loans don't require any money, but they do require a minimum credit score of 620 Jumbo Loans – Borrowers can use a jumbo loan to buy or refinance a high balance home (a property set by Freddie Mac and Fannie Mae Credit limit). . You'll need a minimum of 20% down payment for a new purchase and a minimum credit score of 720

Note that Flagstar Bank's credit requirements are slightly higher than some other lenders. It requires a score of at least 620 for an FHA loan while many companies go up to 580.

If you're hoping for FHA funding with an FICO score in the 580-620 range, you'll need to look elsewhere.

Where can I get a mortgage at Flagstar Bank?

Flagstar Bank only has offices in select states: Michigan, Indiana, California, Wisconsin, and Ohio.

However, the lender is licensed in all 50 states and works with approximately 2,350 outside mortgage lenders, loan officers, and credit advisors.

If you live in a state without a Flagstar branch, you can manage your mortgage payment online through MyLoans, the lender's online service center.

Is Flagstar the Best Mortgage Lender For You?

If you are looking for a conventional loan, a government loan, a jumbo loan, or perhaps a renovation or new home loan, Flagstar Bank may have a mortgage solution for you.

The lender offers competitive rates and fees for new purchases and refinancing. But depending on where you live, you may not have access to home equity solutions.

Flagstar is also transparent about its mortgage rates so borrowers can request quotes while shopping.

Additionally, the lender's mortgage information center has a wealth of helpful information to guide you through the process. These include tips on buying a home, tips on qualification and tips on loan support. The more information you have, the easier it is to make an informed decision.

Remember to compare the rates and fees of some other lenders before making your decision.

Confirm your new plan (July 1, 2021)

Related Articles