Flagstar Mortgage Options
Conventional Fixed Rate
The fixed rate loan is the most popular loan option since the interest rate set at closing remains constant throughout the term of the loan.
Features
- This agency-regulated-product offers a variey of loan terms from 8 years to a maximum of 30.
- The interest rate is set at the time of closing and remains constant over the entire loan term.
- Transactions with less than 20% invested into the value of the property will typically require Private Mortgage Insurance, which can be removed when certain criteria is met.
- Minimum down payment programs are available for qualified applicants.
Conventional Adjustable Rate
An adjustable-rate mortgage is a mortgage loan with the interest rate on the note periodically adjusted based on an index from the credit markets.
Features
- This agency-regulated-product offers a variety of initial fixed-rate periods of 3, 5, 7, or 10 years.
- The interest rate is set at the time of closing and remains constant over the initial fixed-rate period.
- Once the fixed-rate period expires, the interest rate can increase or decrease on an annual basis.
- Transactions with less than 20% invested into the value of the property will typically require Private Mortgage Insurance, which can be removed when certain criteria is met.
Conventional Multiple Property
A multiple property loan is designed to finance multiple properties simultaneously and are often used by property owners looking to own or buy several properties at once.
Features
- This loan option is available as a fixed or adjustable-rate loan.
- It is a fully amortizing, conventional conforming first lien mortgage loan program specifically designed for borrowers with 7 to 10 financed properties.
Fixed Second Mortgage
This is a specialty loan option that enables applicants to avoid moving into a Jumbo loan by securing a second mortgage on the home.
Features
- This is not a stand-alone second mortgage program.
- This is a subordinate-lien, closed-end fixed-rate loan.
- Loans under this program must be closed concurrently with a Flagstar Bank (Rebrand) conventional, agency-eligible first mortgage.
FHA Fixed Rate
FHA loans are designed for low-to-moderate-income borrowers; they require a lower minimum down payment and lower credit scores than many conventional loans.
Features
- Fixed-rate periods range from 10 years to 30 years.
- New purchase mortgages allow for a low-down payment of 3.5% of the purchase price.
- The Federal Housing Administration (FHA) provides mortgage insurance on loans made by FHA-approved lenders throughout the United States.
- FHA mortgage insurance provides lenders with protection against loss as a result of homeowners defaulting on their mortgage loans.
FHA Adjustable Rate
An FHA adjustable-rate mortgage is a mortgage loan with the interest rate on the note periodically adjusted based on an index from the credit markets.
Features
- FHA offers a 3- and 5-year initial fixed-rate period.
- The interest rate is set at the time of closing and remains constant over the initial fixed-rate period.
- Once the fixed-rate period expires, the interest rate can increase or decrease on an annual basis.
- FHA new-purchase mortgages allow for a low-down payment of 3.5% of the purchase price.
VA Fixed Rate
A VA loan is a mortgage loan available through a program established by the United States Department of Veterans Affairs who sets the qualifying standards, dictates the terms of the mortgages offered and guarantees a portion of the loan.
Features
- Fixed Rate periods range from 10 years to 30 years.
- The Veterans Administration loan program enables veterans and active-duty personnel to purchase or refinance a home with favorable loan terms.
- VA offers mortgages that can accommodate no down-payment on many purchase transactions.
VA Adjustable Rate
A VA adjustable-rate mortgage is a mortgage loan with the interest rate on the note periodically adjusted based on an index from the credit markets and is part of the loan program established by the United States Department of Veterans Affairs.
Features
- VA offers a 3- and 5-year initial fixed rate period.
- The interest rate is set at the time of closing and remains constant over the initial fixed-rate period.
- Once the fixed-rate period expires, the interest rate can increase or decrease on an annual basis.
VA Interest Rate Reduction Refinance Loan
A VA IRRRL is a VA-guaranteed loan made to refinance an existing VA-guaranteed loan, generally at a lower interest rate than the existing VA loan.
Features
- Generally, the principal and interest payments will be lower than the existing VA loan.
- Both fixed-rate and adjustable-rate terms are allowed on this type of product.
- Interest on the portion of your loan balance that is greater than the fair market value of the dwelling is not tax deductible for Federal Income tax purposes. You should consult a tax advisor for further information regarding deductibility of interest and charges.
Rural Housing
A Rural Housing or USDA Home Loan (also known as the USDA Rural Development Guaranteed Housing Loan Program) is a mortgage loan offered to rural property owners by the United States Department of Agriculture.
Features
- The USDA mortgage program is for homes located in rural areas, including open country and places with a population of 10,000 or less.
- This program offers fully amortizing, fixed-rate mortgage financing and is guaranteed by the U.S. government and requires no down payment.
Programs available only to qualified borrowers. Programs subject to change without notice. Underwriting terms and conditions apply. Some restrictions may apply. A loan-to-value ratio above 80% may result in a need for mortgage insurance. Fees and charges may vary by product and state. A mortgage expert will review and provide you the terms, conditions, disclosures, and additional details on the interest rates that apply to your individual situation.