Lender review
Flagstar Bank review: what Michigan borrowers should know
A Michigan banking fixture from Troy with real branches across the state — one of the few big lenders where you can still sit across the desk from a loan officer, and a rare large-bank source for construction loans.
Best for: branch access and construction lending in michigan
Best fit: buyers building up north or needing branch access
- Headquarters
- Troy, MI
- Founded
- 1987
- NMLS
- #417490
- Min. credit score
- 620
- Min. down payment
- 3%
- MSHDA MI Home Loan
- Approved lender
What works
- Physical branches across Lower Michigan
- One-close construction-to-permanent loans
- Banking relationship discounts available
What to watch
- Digital experience trails online-only lenders
- Posted rates assume strong credit profiles
- Slower closing timelines than Rocket or broker channel
The full picture on Flagstar Bank
Troy has quietly anchored a national banking operation for decades in the form of Flagstar. Its Michigan roots still show where it counts: actual branches across the Lower Peninsula where a loan officer will sit down with you.
Where Flagstar earns its keep
In an era when most big lenders have retreated behind an app, that face-to-face option is genuinely scarce. Flagstar also shines on the harder loans.
Slower pace, less polish
The online experience trails the fully digital lenders, and posted rates assume a strong credit profile, so a middling file may not see the headline number.
Closings tend to move slower than Rocket or the broker channel, worth weighing against a tight purchase deadline in a competitive market.
Loan programs at Flagstar Bank
Which core Michigan loan types Flagstar Bank offers, with the typical minimum down payment for each program. Program floors are industry standards — Flagstar Bank's own minimums or credit overlays may run higher.
| Loan program | Offered | Typical min. down |
|---|---|---|
| Conventional | ✓ Yes | 3% |
| FHA | ✓ Yes | 3.5% |
| VA | ✓ Yes | 0% |
| USDA | — No | — |
| Jumbo | ✓ Yes | 10–20% |
| Construction | ✓ Yes | 5–20% |
Also offers: HELOC.
Where Flagstar Bank's credit bar sits
Flagstar Bank's roughly 620 minimum sits in the good credit range. Below, that 620 floor is plotted against the four broad credit tiers and the 620 median for the 55 Michigan lenders we track.
| Flagstar Bank | Michigan median* | |
|---|---|---|
| Editorial score | 4.2 / 5 | 4.0 / 5 |
| Min. credit score | 620 | 620 |
| Loan programs offered | 6 | 5 |
| Michigan-headquartered | Yes | — |
*Median across the 55 Michigan lenders in our catalog.
Compare: Lake Michigan Credit Union Towne Mortgage Company Huntington Bank This week's Michigan rates
Flagstar Bank: frequently asked questions
What credit score do you need for a Flagstar Bank mortgage?
Flagstar Bank generally looks for a credit score around 620 on its most common loans. Its FHA loans can go lower — often to 580, or 500 with a larger down payment — while conventional and jumbo loans usually want higher scores. That 620 is a floor, not a promise: every lender layers on its own overlays, and approval still turns on your income, debts and the property.
Will Flagstar Bank sell my mortgage after closing?
It may. Many lenders sell the servicing rights to a loan after closing, so ask Flagstar Bank directly whether it retains servicing or transfers it — your rate and terms won't change either way.
Independent and unpaid — Flagstar Bank did not pay for placement. How we score every lender (and where our rate data comes from) is set out in our editorial policy. Figures reflect public information as of 2026-07-16 and can change; the only rate that binds a lender is a written Loan Estimate. Verify the license at NMLS Consumer Access (#417490). MSHDA status reflects the state's MI Home Loan lending-partners list dated June 12, 2026, which changes over time.