Flagstar Bank is one of the largest banks headquartered in the midwest.  It is also one of the larger mortgage lender and does a significant amount of business in wholesale mortgages.  I recently had a client approach me with a home financed through Flagstar Bank.  While the loan was a standard mortgage with Flagstar, it was no longer owner-occupied and he worried that he could not cover the cost of the mortgage with what he could charge to rent the home.  A modification was his only option. (continued below)


It is a common misconception that non-owner occupied homes cannot be modified.  It is true that many of the government programs do not benefit properties that are not occupied by their owners.  HAMP, a common government modification program, requires that the home be owner-occupied in order to be modified under its guidelines.  However, most banks have some form of program offered in-house that provides options for non-owner occupied homes.  In this case, we were able to significantly reduce the monthly payments on the Flagstar loan making it possible for the homeowner to rent the property for what it is worth and maintain ownership of the property.

Loan Modification with Flagstar Bank

Payment Before Modification (including principal, interest, taxes, and insurance): $2,869.45

New Payment Under Final Loan Modification (still includes principal, interest, taxes, and insurance): $2,075.79

Monthly Savings under Flagstar Modification: $793.86
Monthly Savings Percentage: 28%

The client will save a significant in monthly payments.  For this owner, it will help him keep the property and rent it for what it costs in mortgage payments.  If you are an investor or are struggling to keep a home that you no longer live in, you have options.  Contact our office today at (951) 801-5570 for a free consultation of your options and analysis of your situation.

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