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Flagstar Bank Mortgage Review 2026
Last updated on June 23, 2026
Written by
Lead Writer & Content StrategistCo-written by
Contributing WriterWritten by
Lead Writer & Content StrategistCo-written by
Contributing WriterMany or all of the products on this page are from partners who compensate us when you click to or take an action on their website, but this does not influence our evaluations or ratings. Our opinions are our own.
Why trust NerdWallet
Why trust NerdWallet
- 50+ mortgage lenders reviewed and rated by our team of experts.
- 40+ years of combined experience covering mortgages and financial topics.
- Objective, comprehensive star rating system assessing 120+ categories and 5,000+ data points.
- Governed by NerdWallet's strict guidelines for editorial integrity.
Our Take
5.0
Home loans overall
NerdWallet rating
The Nerdy headline:
Flagstar Bank stands out for having a wide variety of home loan options, including harder-to-find products. But take note that Flagstar has reduced its mortgage business as part of corporate restructuring. Executives have indicated that the lender will rebuild its home lending operations by focusing on the needs of banking clients. For now, Flagstar is most likely to appeal to existing customers.
Jump to:Full Review
Flagstar: NMLS#417490
Min. credit score
600
Min. down payment
3%
Loan types and products
Purchase, Refinance, Home Equity, Jumbo, Fixed, Adjustable, FHA, VA, USDA
Pros
- Offers down payment assistance programs to borrowers in qualifying areas.
- Reported average time to close is 25 days, faster than the national average.
- Conventional loan terms extend to 40 years, which is unusually flexible.
Cons
- Branches are only available in nine states.
- No option to contact through online chat.
- Sold its mortgage servicing business in 2024, meaning your loan will likely move to a different company after closing.
Lender | Min. credit score | Min. down payment | |
|---|---|---|---|
 Visit Lenderat NBKC at NBKC | 620 | 3% | Visit Lenderat NBKC at NBKC |
 Visit Lenderat New American Funding at New American Funding | N/A | N/A | Visit Lenderat New American Funding at New American Funding |
 Visit Lenderat Rocket Mortgage, LLC at Rocket Mortgage, LLC | 580 | 3.5% | Visit Lenderat Rocket Mortgage, LLC at Rocket Mortgage, LLC |
 4.0 Visit Lenderat GO Mortgage at GO Mortgage | 620 | 3% | Visit Lenderat GO Mortgage at GO Mortgage |
 Visit Lenderat Veterans United at Veterans United | 620 | 0% | Visit Lenderat Veterans United at Veterans United |
Full Review
At a glance: Flagstar Bank mortgage options
Flagstar Bank is a large, regional bank based in Hicksville, NY. Mortgages are available nationwide, but branches are limited to nine states: Arizona, California, Florida, Indiana, Michigan, New Jersey, New York, Ohio, and Wisconsin.
In addition to conventional and government loans, Flagstar Bank offers a wide variety of harder-to-find mortgages. The lender also offers a proprietary “Destination Home” mortgage, which has no down payment or mortgage insurance requirements for qualifying borrowers.
🏠 Common mortgages
- Conventional mortgages (fixed-rate and adjustable)
- Refinancing (rate-and-term and government)
- Jumbo loans
- FHA loans
- VA loans
🔑 Specialty loans
- Destination Home Mortgage
- USDA loans
- Interest-only mortgages
- Co-op loans
- Nonwarrantable condo loans
- Mortgages for second homes
- Mortgages for self-employed borrowers
- Physician loans
- Construction mortgages
- Mortgages for manufactured homes
- Mortgages for borrowers without Social Security numbers (ITIN loans)
💵 Home equity
- HELOCs
- Home equity loans
- Cash-out refinancing
Flagstar Bank special offers and discounts
Flagstar’s down payment assistance programs and partnerships can be attractive to borrowers who are short on savings. These things stood out in our research.
- Flagstar Gift Program: A credit up to $7,500 for down payment and closing costs for borrowers in qualifying locations, or $15,000 for borrowers in Arizona, California, New Jersey and New York.
- MSHDA Down Payment Assistance Program: A $10,000 no-interest down payment assistance loan through the Michigan State Housing Development Authority.
What mortgages does Flagstar Bank specialize in?
A lender’s experience with your loan type can make a big difference. We looked at recent federal data to find the types of mortgages Flagstar Bank handles most often.
While conventional purchase loans made up most of Flagstar Bank’s originations in 2024, more than 30% of its total loans went to borrowers looking to refinance their mortgages. Additionally, FHA loans and VA loans accounted for nearly a third of Flagstar’s overall loan volume.
How we score Flagstar's home loans
Like to read the fine print? We do, too. Each year, NerdWallet writers and editors review the latest data and research on mortgage lenders, including federal data, and use a consistent method to score them based on what matters most to borrowers.
Flagstar earned a 5-star home loans overall rating from NerdWallet. Here’s how that score breaks down across our five weighted subcategories.
Average
Rates and fees (30%)
Rates and fees determine how much a loan will cost you overall. NerdWallet reviews the latest federal data to score each lender’s average APR spread — a measure that combines interest rates and fees. A higher score means lower typical costs compared to other lenders.
Good
Product accessibility (20%)
We evaluate how widely available a lender’s products are across the U.S. and how accessible they are to different financial profiles. A higher score means broader availability and more flexible requirements. A lower score means fewer options or stricter requirements.
Excellent
Customer experience (20%)
We evaluate customer experience by testing and reviewing features like the online application, mobile app, and availability of phone or chat support. A higher score means a smoother, more convenient experience and easier access to help. A lower score means more friction or fewer support options.
Average
Loan variety (15%)
We evaluate loan variety based on the range of home loan types a lender offers. A higher score means more options, while a lower score means a more limited selection.
Excellent
Rate transparency (15%)
We review how clearly lenders share rate information on their websites, including sample rates and tools to estimate personalized rates. A higher score means it’s easy to find clear, comprehensive details and compare rates. A lower score means less information is available, often requiring you to contact the lender.
🤓
NerdWallet’s ratings are objective and well-researched (we have the spreadsheets to prove it). But choosing a mortgage lender isn’t just about a star rating or a score breakdown. It’s also about finding the right lender for your unique situation. So yes: you can learn a lot from how the mortgage Nerds scored Flagstar’s home loans. But you’re the expert when it comes to the features of your own best-match mortgage lender.Nerdy Tip
Flagstar Bank mortgages reputation and customer experience
NerdWallet’s star ratings look at objective factors like rates, fees and loan options. To give you a sense of what the borrower experience is really like, we pulled the latest customer satisfaction scores from Zillow, and we contacted the lender’s customer support.
Zillow Mortgage Lender Customer Rating
4.97
out of 5
Excellent rating as of the date of publication.
Rating reflects more than 3,000 customer reviews.
Flagstar Bank customer service options
Here’s how you can get in touch with Flagstar.
Ways to reach Flagstar
Physical branches . . . . . . ✅
Phone support . . . . . . . . . ✅
Mobile app . . . . . . . . . . . . ✅
Online chat (bot) . . . . . . . 🚫
Online chat (human) . . . . 🚫
🤓 Our Nerds say... in-person experience is limited
Taylor Getler, lead writer, mortgages
Borrowers can get customer service over the phone, via mobile app or — if you live in one of the nine states with branch locations — in person. When we called, we navigated a short phone tree and then waited on hold before connecting with an agent who was able to answer our questions. It took us just over five minutes to reach a live representative.
The phone tree allows users to direct their call depending on the type of loan they want, with separate lines for construction loans, purchase loans, refinances and home equity products.
» MORE: How to apply for a mortgage
Alternatives to a Flagstar Bank mortgage
Our biggest tip: Get offers from at least three different mortgage lenders. Comparison shopping can save you thousands of dollars. You can get rate quotes yourself, or work with a mortgage broker to shop around on your behalf.
Nontraditional borrowers looking for harder-to-find loans may be interested in CrossCountry Mortgage, which offers many of the same products.
FHA borrowers should consider applying with LoanDepot, which is NerdWallet’s 2026 Best of Mortgages Award winner for FHA loans.
First-time buyers could consider applying with Rocket Mortgage, which is NerdWallet's 2026 pick for the best lender for first-time home buyers. In a sequence of mortgage company shakeups, Rocket acquired Mr. Cooper, which had previously acquired Flagstar’s servicing (or loan payment) business.
» MORE: Best FHA lenders
More from NerdWallet
Methodology
NerdWallet rates mortgage lenders based on what matters most to borrowers: rates and fees, product accessibility, customer experience, rate transparency and the range of loan options.
We review more than 40 lenders and score them using a weighted system that prioritizes affordability and a smooth borrowing experience. Lenders earn higher scores for offering lower borrowing costs, making loans widely available, clearly displaying rate information and supporting borrowers from application through closing.
We use a mix of lender-provided information, publicly available data and our own research and analysis to evaluate each lender. Recent regulatory actions may affect a lender’s score.