Top perks
Specialty loan options
Flagstar Bank Mortgage offers a wide enough selection to meet most borrowers' needs, including some specialty loans that you won't find everywhere. Some of the harder-to-find mortgage loan programs include:
- Multiple-property loan for borrowers with seven to 10 financed properties
- Construction loan
- Renovation loan
- Programs designed to help people become homeowners, including down payment assistance and lower monthly private mortgage insurance (PMI) rates
Down payment assistance
Flagstar Bank Mortgage offers home buyer grants. Grants are non-repayable funds that you can use toward your down payment, closing costs, or both. Several programs are offered. In one program, you can get a grant for up to $15,000 depending on your income and location.
The Flagstar Bank Mortgage rate comparison tool is very handy. You can enter your information and get sample interest rates for various options. It's easy to play around with your purchase price, down payment amount, and credit score. Entering different credit score ranges shows you how much you might be able to save if you can raise your score before you apply.
Home buyer education
Buying a home is one of the biggest financial decisions many people make. The Flagstar Bank Mortgage website offers easy-to-find and detailed information about the mortgage process. The Learning Center section of its website includes information about how to qualify, shop around, and apply for a mortgage, as well as how to manage it. The FAQ explains everything from homeowners insurance and PMI, to escrow and closing, and even what will happen if you run into financial hardship and need assistance. If you're a first-time home buyer, you can learn a lot about the process without giving your contact info to a sales team.
Qualification checklist
If you're wondering about first-time home buyer requirements or you haven't gotten a mortgage in a long time, you can refer to a convenient mortgage qualification checklist on Flagstar Bank's website.
Accessible HELOC
The minimum draw amount for Flagstar's home equity line of credit is just $10,000, which is lower than many other lenders' minimums. That makes it a good option for lower financing needs. Also, the maximum interest rate disclosed in Flagstar's footnotes is lower than the average credit card interest rate. That makes the Flagstar HELOC a potentially good option to consider for homeowners looking to consolidate higher-interest credit card debt.
What could be improved
Wow factor
Flagstar Bank earns below-average ratings on the J.D. Power 2023 U.S. Primary Mortgage Servicer Satisfaction Study™ and didn't make the J.D. Power 2023 U.S. Primary Mortgage Origination Satisfaction Study™. In fact, Flagstar has had a history of below-average marks on these studies for the past few years, with customer satisfaction for origination having a poorer showing than customer satisfaction for servicing. It's worth noting, however, that Flagstar Bank has earned an A+ from the Better Business Bureau -- which says that when customers do complain, the bank reaches out and works to find a resolution.
Annual fee for HELOC
Flagstar currently charges a $75 annual fee for its HELOC (it's waived the first year). Many other lenders offer HELOCs with no annual fee.
Did you know? Flagstar Bank Mortgage is one of the largest mortgage lenders in the United States.
