Community Lending and Home Loan Programs
There are many ways to finance a home. We offer down payment assistance and flexible mortgages that turn the dream of homeownership into a reality for more people.
Personalized financing solutions to make homeownership more affordable
Whether you’re already house hunting or just getting started, find out if you qualify for a program that makes buying or refinancing a home more affordable. Below is a partial list of down payment assistance, federal grants, and flexible mortgage programs that we offer. Each one features different benefits and requirements, such as a minimum credit score or homeownership education. Some are available only in specific cities. Talk to a Flagstar Bank loan advisor to learn more.
Specialty and CRA home loan programs
As part of our commitment to the Community Reinvestment Act, we are proud to offer these CRA-specific loans that feature low down payments, flexible qualifications, and savings opportunities. They can be a great fit for people who have low to moderate incomes or want to revitalize certain neighborhoods.
Destination Home™ Mortgage
This loan features flexible qualifying criteria and options with no down payment. Available in select areas for a new home purchase or purchase with renovation.1
Detroit Land Bank Authority
Flexible qualifications and funding for buyers who purchase in Detroit neighborhoods. Loan can cover home only or home and repair costs.
Community Comeback Program (Pontiac, Michigan)
A program to bridge the gap between price and appraisal for Pontiac homes. Requires 660 or higher credit score. Available for move-in ready homes, repairs, and refinance.
Fannie Mae HomeReady® and Freddie Mac Home Possible®
Favorable purchase terms for all income levels. Flexible sources of funds allowed for down payment and closing costs.
Fannie Mae RefiNow™ and Freddie Mac Refi Possible℠
A perfect opportunity to get a better interest rate, save at least $50 each month, and receive a $500 lender credit if an appraisal is required. This refinance is for qualified borrowers with low or moderate incomes. Some restrictions apply.
Loans for Borrowers Without Social Security Numbers
No SSN? Use your Individual Tax Identification Number (ITIN) to apply for a fixed-rate conventional mortgage instead. Available in all states for purchases and refinances. Minimum 580 credit score. Must meet all other qualifications. U.S. citizenship not required.2
Down payment assistance programs
Saving enough for a down payment can be tough. Let’s see if we can help. Flagstar offers down payment assistance bonds, grants, gifts, and many other ways to help homebuyers overcome this obstacle. Contact a Flagstar home loan advisor to find out what type of down payment assistance is available in your area, or take a look at our mortgage down payment calculator.
Flagstar Gift Program
With this exclusive Flagstar program, qualified first-time buyers receive up to 3% or $5,000 toward down payment or closing costs3 with no obligation to repay.4
Flagstar Grant Program
Qualified borrowers receive up to $2,500 in down payment assistance and up to $7,500 if they buy a home through the Detroit Land Bank.
MSHDA Down Payment Assistance Program
Michigan homebuyers can save on closing costs and get up to $7,500 in a no-interest down payment assistance loan through the Michigan State Housing Development Authority.5
Federal home loan grant programs
Flagstar Bank is a member of the Federal Home Loan Bank of Indianapolis, which allows us to offer these grants.6
Accessibility Modifications Program
Grants up to $12,000 to make homes more accessible for seniors and people who have permanent disabilities. No borrower match required.
Neighborhood Impact Program (NIP)
Grants up to $7,500 to pay for new windows, a better furnace, or other repairs for low-income homeowners. No borrower match required.
Homeownership Opportunities Program (HOP)
The HOP down payment assistance grants up to $8,000 for a down payment and closing costs for first-time homebuyers at or below 80% of area median income. Buyer must contribute $1,000 toward home purchase.
Income and area limitations may apply. Programs available only to qualified borrowers. Programs subject to change without notice. Underwriting terms and conditions apply. Some restrictions may apply. Programs available for primary residence only, and homeownership education may be required for a number of these programs. Not a commitment to lend.
Generally, the smaller your down payment percentage, the higher your interest rate. A loan to value ratio above 80% may result in the need for mortgage insurance. If mortgage insurance is required, the amount of your payment will increase.
1Purchase or purchase with renovation of owner-occupied, primary residence only. Geographic restrictions and income limits apply. Property must be located in a low or moderate census tract in the Flagstar Bank CRA assessment area and borrower(s) must meet low-moderate income requirements. Annual income limits and loan amount limits may vary by state and county. Homebuyer education required and Rehab education may be required.
Eligible county locations: California—Riverside and San Bernardino; Michigan—Eaton, Ingham, Kent, Macomb, Oakland, Washtenaw, and Wayne.
2Borrowers must have a valid ITIN number and meet all other underwriting guideline requirements, including, but not limited to, verification of legal status and presence within the United States and the ability to obtain a valid credit report. Available on Fannie Mae or Freddie Mac conventional products only. For loans that require mortgage insurance, at least one borrower must have a valid Social Security number.
3Borrower(s) must meet the program criteria for first-time homebuyer(s). Down payment and closing cost assistance for owner-occupied, primary residence only. Minimum credit score, debt-to-income (DTI) requirements, annual income limits, and purchase price limits apply. Borrower must contribute a minimum of $1000 of their own funds towards down payment. Homeownership counseling is required. Available for properties located in limited Flagstar Bank Community Reinvestment Act (CRA) Assessment areas. Target cities eligible for the gift program are subject to change. No repayment of gift funds is required. Gift program funds are limited and may not always be available.
Eligible County Locations: CA - Riverside and San Bernardino. IN - Adams, Allen, DeKalb, Elkhart, Fulton, Huntington, LaPorte, LaGrange, Miami, Rush, St. Joseph, Steuben, Wabash, Wells, White. MI – Berrien, Branch, Calhoun, Delta, Dickinson, Eaton, Genesee, Gogebic, Hillsdale, Houghton, Ingham, Iron, Jackson, Kalamazoo, Kent, Livingston, Macomb, Marquette, Menominee, Monroe, Oakland, Ottawa, Schoolcraft, St. Joseph, Washtenaw, Wayne. OH- Van Wert. WI: Oconto.
4This offer is for qualifying loans only, cannot be used to reduce any other fees, and cannot be combined with any other mortgage fee reduction offer.
6MSHDA loans are required to be paid back at the end of the initial loan term. Down payment assistance loans are not eligible with VA financing and must be repaid upon sale or transfer of property or repayment/refinance of the first mortgage.
6Grant and gift program funds are limited and may not always be available.