Used at the end of a sentence, usually when someone is in a circumstance that doesn't meet expectations. It has nothing to do with being gay, more about being sub-par.
Can be used as an insult directed at one's self, or as a joke directed at a friend.
"Yo bro, what's wrong?"
"I pulled a muscle in my back like a faggot."
"I've been working all week like a faggot."
"My car broke down and I had to bike to work like a faggot."