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Government Home Loans

The U.S. Department of Veterans Affairs (VA), U.S. Department of Agriculture (USDA), and Federal Housing Administration (FHA) offer loan programs that make homeownership possible for more people. Find out if a government-backed loan can help you keep costs down.

We’re here to help every step of the way.

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Ready to apply online?

Start your loan application here. Don't worry—if you get stuck, we're just a phone call away.  

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Speak with a loan advisor.

We'll help you find the right loan, start your application, and answer your questions.

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Find a loan advisor.

Connect with a local expert and meet remotely or at a nearby branch. We'll guide you through the entire home loan process.

Home loans that meet you where you are now

Federal and state governments offer mortgage programs with lower costs and easier qualifications. These loans can be great for first-time homebuyers, those with less-than-perfect credit, and borrowers with low to moderate incomes.

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Low or even no down payment

USDA and VA loans require no down payment. Other options need as little as 3.5% down.1 

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Affordable and safe rural housing

Borrowers who qualify pay less to finance homes in eligible rural areas.

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State housing finance agency loans

These loan programs keep costs down for borrowers in Connecticut,  Michigan, Ohio, and Wisconsin.

See if you can save with a government-backed loan

Let’s find a mortgage that works for you. Many federal and state loan programs make homeownership possible and more affordable with easier qualifications, less stringent credit requirements, and low interest rates. 

 

We're an approved government lender with the expertise to guide you through the mortgage process, from the time you apply until you get the keys to your new home and beyond.

  • Flexible requirements make it easier to qualify for a loan
  • Competitive fixed and adjustable interest rates
  • Low or no down payment
  • Financial assistance available with some programs

Available government-backed mortgages

Let's find a FHA, VA, USDA, or state home loan that's perfect for you. Apply for a government-insured loan to buy, build, or improve a home or refinance your current mortgage.

Low Down Payment

FHA Fixed Rate2

Backed by the FHA, these loans can be a great fit for first-time homebuyers, buyers with limited cash for a down payment, or borrowers with less-than-perfect credit.

  • Down payment as low as 3.5% of the price of the home
  • Loan terms up to 30 years
  • Qualify with little to no formal credit history
  • No maximum income limit, just a steady employment history
  • No prepayment penalty

LOW INITIAL RATE

FHA Adjustable Rate2

This FHA loan features a lower fixed rate for an initial period of 1 to 10 years. After that, the interest rate can increase or decrease once per year. 

  • Low down payment 
  • Qualify with little to no formal credit history
  • No maximum income limit, just a steady employment history
  • No prepayment penalty
  • Limits on how much the rate can adjust 

No down payment

VA 30-Year Fixed Rate1

Designed specifically for veterans and active-duty personnel, this loan offers favorable terms and flexible qualified criteria. 

  • Loan amounts up to $4 million
  • No down payment for eligible veterans with full VA entitlement
  • No mortgage insurance required
  • Greater flexibility in qualification standards
  • Refinance with no appraisal and minimal paperwork

LOW INITIAL RATE

VA Adjustable Rate1

This Veterans Administration loan program offers an adjustable rate option with an initial fixed-rate period. 

  • Low interest rate for the first few years
  • No down payment for eligible veterans with full VA entitlement
  • No mortgage insurance required
  • Limited closing costs
  • VA lifetime benefit can be used multiple times

STREAMLINE REFINANCE

VA Interest Rate Reduction Refinance3

A VA IRRRL allows you to refinance your current VA loan with ease. 

  • Usually no appraisal and minimal paperwork 
  • Replace your current loan with a new one under different terms
  • Refinance for lower monthly payments
  • Or make your monthly payments more stable by moving from an adjustable to a fixed interest rate 

LOWER COSTS

State Housing Finance Agency Loan

These loan programs from state housing finance agencies (HFAs) make homeownership more affordable.

  • Terms and qualifications vary by state
  • Low down payment
  • Competitive fixed interest rate
  • Down payment and closing cost assistance for qualified borrowers
  • Available in Connecticut, Michigan, Ohio, and Wisconsin

Up to 100% Financing

USDA Loans4

This loan program makes homeownership more affordable for borrowers with low to moderate incomes in rural areas as determined by the USDA.

  • Loans for primary homes in eligible rural areas
  • Lower fixed rates than conventional loans
  • No down payment 
  • For buying, building, repairing, or improving a home
  • Must meet USDA income requirements

Let’s find the perfect mortgage for you

If you're like most people, buying a home is the largest purchase you'll ever make, but you don't have to go it alone. Talk to the friendly, competent, and trustworthy experts at Flagstar to find a home loan that's right for you. 

Icon of a computer monitor and smart phone

Ready to apply online?

Start your loan application here. Don't worry—if you get stuck, we're just a phone call away.

Icon of a person with a speech bubble in front of them

Speak with a loan advisor.

We'll help you find the right loan, start your application, and answer your questions.

Icon of a person standing next to a map location symbol

Find a loan advisor.

Connect with a local expert and meet remotely or at a nearby branch. We'll guide you through the entire home loan process.

Manage your loan your way with MyLoans®

Sign in to MyLoans anytime to make payments, view your statements, sign up for paperless statements, and more. Everything you need is right at your fingertips. 

Everything you need to know about home loans

Whether you're an expert or a first-timer, find the ins and outs of mortgages here. Learn what it takes to qualify for a loan, discover the different types of mortgages, and finally understand what an escrow account is for. 

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Home loan basics

Learn how mortgages work, the differences between adjustable and fixed interest rates, and more.

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The mortgage process

Get a step-by-step breakdown, from prequalifying to inspections to closing and beyond. 

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Mortgage Loan Calculators

Calculate your house-hunting budget, monthly payments, closing costs, and more.

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Current mortgage rates

View our competitive mortgage rates for all types of home loans.

7th Largest Bank Mortgage Originator

Inside Mortgage Finance, Q3 2023

Why choose Flagstar?

We're an award-winning lender with more than 35 years of experience connecting customers to the right mortgage solution for their needs. With hundreds of conventional, jumbo, and government-backed options available, we'll find the right home loan for you, too. Whether you are buying a new home or ready to refinance, you can trust our simple application and streamlined process to get you to closing on time.

You may also be interested in:

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Adjustable rate mortgages

Don't let the word “adjustable” keep you away from a great loan. Find out if an ARM is right for you.

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Fixed rate mortgages

No surprises here, just peace of mind from consistent monthly payments that fit into your budget. 

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Jumbo loans

Discover how a jumbo loan can be a smart way to finance higher-priced homes. 

Programs for qualified borrowers. All borrowers are subject to credit approval, underwriting approval, and product requirements, including loan to value, credit score limits, and other lender terms and conditions. Fees and charges may vary by state and are subject to change without notice. Some restrictions may apply. Not a commitment to lend. A loan advisor will review and provide you with the terms, conditions, disclosures, and additional details on the interest rates that apply to your individual situation.

1Rate 6.227% with an APR of 6.634% as of 4/12/2024 10:10 AM EDT . The APR calculation is based on a 30-year fixed-rate mortgage in the amount of $240,000 for the purchase of a single-family, primary residence with 100% loan-to-value (LTV) or 0% down payment, minimum borrower credit score of 740, and estimated points of 1% of the loan amount plus 2.15% VA funding fee with 360 monthly payments in the amount of $1,523. Payment amount does not include taxes and insurance, which means your monthly obligation will be greater. Actual payment amount will vary based upon credit history, rates in effect at the time of consummation, LTV, and other credit factors. Program terms available may vary based on the state or county in which the financed property is located. The APR is subject to change at any time prior to consummation, and individual APRs may vary for loan purchases and loan refinances due to loan programs being offered, loan volume, or other factors. For eligible veterans. All borrowers are subject to qualification, underwriting approval, and lender terms and conditions. Terms, conditions, and rates are subject to change without notice.

2Rate 5.964% with an APR of 6.847% as of 4/12/2024 10:10 AM EDT. The APR calculation is based on a 30-year fixed-rate mortgage in the amount of $240,000 for the purchase of a single-family, primary residence with 96.5% loan-to-value (LTV) or 3.5% down payment, minimum borrower credit score of 740, estimated points of 1% of the loan amount, and origination fee of $1,295 plus 1.75% FHA funding fee with 360 payments in the amount of $1,458. Payment amount does not include taxes and insurance, which means your monthly obligation will be greater. Actual payment amount will vary based upon credit history, rates in effect at the time of consummation, LTV, mortgage insurance premiums, and other credit factors. Program terms available may vary based on the state and county in which the financed property is located. The APR is subject to change at any time prior to consummation, and individual APRs may vary for loan purchases and loan refinances due to loan programs being offered, loan volume, or other factors. All borrowers are subject to qualification, underwriting approval, and lender terms and conditions. Terms, conditions, and rates are subject to change without notice.

3A VA Interest Rate Reduction Refinance Loan is for refinancing of an existing VA mortgage plus costs and is not an option for consolidation of debt. Available to eligible borrowers. Program terms available may vary based on the state or county in which the financed property is located. Existing loan must be serviced by Flagstar Bank. 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. Please consult your tax advisor regarding the deductibility of interest. Important information will be provided to you in the disclosures you receive after we have received your application and the loan documents you are provided at loan closing.

Flagstar Bank NMLS# 417490