Unlocking 2024: Is Flagstar Bank Your Best Mortgage Option?

Flagstar is your go-to for a wide range of mortgage options available nationwide:

• Fixed-rate mortgages: Lock in your rate for the life of your loan—options span from 8 to 40 years.
• Adjustable-rate mortgages (ARMs): Start with a fixed rate for 5, 7, or 10 years before adjusting.
• FHA loans: Backed by the Federal Housing Administration, requiring just a 3.5% down payment for those with a 580 FICO score.
• VA loans: Exclusively for veterans and service members, these loans require no down payment or private mortgage insurance.
• USDA loans: Ideal for rural homebuyers, allowing zero down payment options.
• Jumbo loans: Flagstar offers jumbo loans up to $3 million—no official cap on loan amounts!
• HomeReady and Home Possible: Just 3% down and lower financing costs for eligible borrowers.
• Professional loans: Tailored for medical professionals, attorneys, and CPAs, offering competitive rates.
• Construction loans: Options for construction-only and construction-to-permanent loans.
• Non-qualifying mortgages: Alternative loans for those who don’t fit traditional credit or income molds.
• Manufactured home loans: Financing available for both manufactured and mobile homes.

• Minimum credit score: 620 for conventional loans, 580 for FHA and VA loans.
• Minimum down payment: 0% for VA loans, 3% for conventional, 3.5% for FHA.
• Debt-to-income ratio (DTI): Ranges from 45% to 55% based on the loan type.

Flagstar offers an array of impressive programs designed to assist homebuyers in achieving their dreams:

Relationship Discounts

Sign up for autopay using a Flagstar deposit account and enjoy a 0.25% discount on home equity loans or HELOCs.

Destination Home Mortgage

Homebuyers in select areas may qualify for a 0% down payment mortgage with no PMI and a credit score as low as 600.

Power Up Program

Qualified first-time homebuyers can secure up to $8,000 in funds toward their purchase.

Flagstar Gift Program

Potentially receive up to 3% of your down payment or $3,000 (up to $10,000 in certain states).

Detroit Land Bank Program

A unique low-down-payment option for buyers in select Michigan areas, with no PMI and flexible qualifications.

Individual Tax Identification Number (ITIN) Mortgages

Available for those without a Social Security number—credit score of at least 620 required.

Flagstar also provides cash-out refinancing options across all 50 states and D.C., alongside HELOCs, home equity loans, and special refinancing options.

• Credit score: 620 minimum for refinancing options.
• Debt-to-income ratio: Maximum of 45%.
• Home equity: Minimums vary depending on the loan type.
• Home appraisal: Required but may be waived in some cases.

While Flagstar Bank received below-average ratings in customer satisfaction from J.D. Power’s survey, it proudly holds an A+ rating from the Better Business Bureau for transparency and responsiveness to complaints.

Apply for a mortgage online, and enter your desired loan amount and ZIP code for customized rate quotes. However, be aware that conventional loan rates aren’t disclosed online.

With physical branches in only nine states, customer service is available by phone and through an online chat feature for assistance.

Let’s place Flagstar under the spotlight alongside two other major mortgage players!

Flagstar Bank vs. Rocket Mortgage

Both lenders serve all 50 states, but while Rocket Mortgage operates online only, Flagstar boasts 400 physical branches across nine states.