Flagstar Bank is a Michigan-based financial institution, however, they offer home loans across the country. With personalized service paired with digital application and tracking capabilities, they offer a solid blend of modern and traditional features.
Plus, they have one of the widest offerings of mortgage products, especially for government-backed and construction loans.
Get ready to learn more about how to get a mortgage with Flagstar Bank.
Mortgage Application Requirements
Flagstar works with each individual applicant to determine what kind of loan they qualify for. Because each type of loan comes with different credit and income requirements, you’ll need to figure out which one best suits your needs and financial situation. If you’re unsure about this, it’s smart to talk to a loan officer over the phone to help determine your best options.
Types of Home Loans Available
Flagstar Bank offers an incredible selection of mortgage products, making it easy to find exactly what you’re looking for. Here’s a brief overview of each type.
Fixed Rate Loans
A fixed rate home loan is one of Flagstar’s most popular options. It’s actually quite customizable, with available loan terms starting as low as 8 years all the way up to the traditional 30-year mortgage.
Once you close on your loan, your interest rate is fixed, meaning it won’t change throughout the life of the loan. Your principal and interest payment, therefore, also stays the same so you know exactly what to expect from your monthly payments moving forward.
Adjustable Rate Loans
An adjustable rate mortgage is just that — your rate can vary, which also changes your monthly payment. However, there are some limitations. Usually, you start off with a fixed period, oftentimes set at seven years.
After that, your rate can adjust depending on where market rates are, which can cause your payment amount to increase or decrease. Because of that added risk, you generally start off with a lower mortgage rate than a fixed rate loan would offer.
Flagstar goes beyond the typical fixed rate VA loan. In addition to this traditional mortgage, they also offer a VA adjustable rate mortgage that provides a fixed interest rate for either three or five years. If you already have a home, you can also take advantage of the VA Interest Rate Reduction Refinance, which doesn’t even require an appraisal in many cases.
A comprehensive offering of FHA loans is another place where Flagstar shines. You can find FHA fixed rates, adjustable rates, 203(k) loans, and 203(h) loans. A 203(k) helps you finance a rehabilitation project of a newly purchased home, as long as it’s at least $5,000 of work and completed within six months.
A 203(h) is designed to help disaster victims replace severely damaged properties. The loan must be taken out within a year of the president declaring the disaster.
Flagstar offers mortgages that are backed by the U.S. Department of Agriculture in order to finance new home purchases in rural areas. The property must be located in an eligible area and you typically need to meet certain income restrictions based on where you live and the size of your family. The major perk with this one is that there’s no required down payment.
If you need a loan higher than a conforming loan allows, you can get a jumbo adjustable rate mortgage through Flagstar. Loan amounts range from $453,101 to $3 million. You can choose a fixed rate period of either 5, 7, or 10 years before the loan switches to a variable rate. Flagstar typically requires a down payment of at least 10% for jumbo loans.
This is a unique mortgage product designed to help professionals recently out of school or otherwise early in their career. It’s usually reserved for professions such as lawyers, doctors, architects, or accountants.
If you qualify, you’ll benefit from a low down payment and no required mortgage insurance. Plus, some of your student debt could be excluded from your debt to income calculations, which could help you qualify for a higher mortgage amount.