Skip to main content
FDIC Logo

FDIC-Insured—Backed by the full faith and credit of the U.S. Government

Close

Before you go

You are about to leave flagstar.com and access a site administered by a third-party. The site you are going to may have different privacy and security policies. We recommend that you review these policies on the linked site. If you choose to proceed, a new browser window will open. To return to flagstar.com, close the new browser window.

Continue
Tag with text Home Equity Line of Credit (HELOC)

Access your home equity with a special introductory HELOC rate

A Home Equity Line of Credit (HELOC) from Flagstar is a smart, flexible way to fund a goal or major expense. Secured by your home, it usually offers lower interest rates than credit cards, and you can use the funds when you need them. Once approved, you can access your credit line anytime for up to 10 years.

Apply now

Prefer to talk? Call us at 248-988-9079

Sash award

Best HELOC Lender

Forbes 20261

Two people building a table

Special introductory APR

4.99% APR2

for the first 6 billing cycles

As low as

7.49% APR3

current variable rate thereafter

Make it happen with a HELOC

Sometimes, a little extra cash can make a big difference. When a big project, expense, or opportunity comes your way, you can pay for it with a home equity line of credit.

Upgrade your home

Renovating and repairing your home is about more than comfort and functionality—it adds value to your investment.

Consolidate debt

Spend less on interest when you pay off high-interest credit card and medical debt with your lower-rate HELOC.

Pay tuition

Easily manage your tuition payments as you're investing in your future.

Make big purchases

Finance significant purchases at a rate that's lower than your credit card.

What are the features of a HELOC from Flagstar?

  • Flexible access to funds when you need them – borrow only what you need and access your line through checks, phone transfers, the Flagstar Mobile App, Online Banking, or by visiting a branch.
  • Loan amounts to fit your goals – apply for a home equity line of credit from $10,000 up to $1 million, depending on your financial needs.
  • Interest-only payments during the draw period – make interest-only payments for the first 10 years, followed by a 20-year repayment period for predictable monthly budgeting.
  • Rate discount for Flagstar checking customers – get a 0.25% interest rate discount when you set up automatic monthly payments from an eligible Flagstar Checking Account.
  • Access funds for almost any purpose – use your HELOC for home improvements, debt consolidation, large expenses, or financial flexibility.
  • Reuse your credit line as you repay – replenish available funds as you make payments—ideal for ongoing projects or unexpected expenses.

How to apply for a home equity line of credit?

step 1 icon

Complete application

Apply online or call us at 248-988-9079 to get started.

step 1 icon

Application review

Our loan processing team will review your application and contact you if they have any questions.

step 1 icon

Funding

If approved, funding typically occurs within 2-3 weeks.

Looking for additional HELOC and home improvement resources?

Modern graphic of overlapping house icons—white house with yellow accents layered over a blue silhouette—symbolizing home ownership or housing services.

Home Equity Line of Credit (HELOC) Payment Calculator

What will my HELOC payments be?
A man and woman looking and pointing something out on a computer screen

Home Equity Lending & How it Works

Your house is an asset you can use to help finance big expenses that are important to you.
Image of two people building a garden wall. One is petting a dog.

Improving Your Financial Future: The Advantages of Home Equity

With home values rising, now’s a great time to tap into your home equity.

HELOC FAQs

A HELOC, or Home Equity Line of Credit, is a revolving line of credit secured by your home’s equity, allowing you to borrow and repay funds as needed, like a credit card and typically lower rates than some other common types of loans or credit card interest rates.

  • You borrow against the equity you've built up in your home (the difference between the home's value and the outstanding mortgage balance).
  • Lenders typically offer a credit limit based on your home's value and your ability to repay.
  • You can draw on the HELOC as needed, up to the credit limit, and only pay interest on the amount you borrow.
  • You can repay the borrowed amount and then draw again, like a credit card but yet it is typically at a much lower interest rate.

There are no restrictions on how you can use a HELOC. Home repairs, college tuition and expenses, debt consolidation, vacation or any other major expenses are allowed. Consult your tax adviser for further information regarding the deductibility of interest and charges.

A home equity loan, commonly referred to as a HELOAN, provides a lump sum to repay over a fixed period with fixed payments, while a HELOC (home equity line of credit) functions like a credit card, allowing you to access funds as needed during a draw period before entering a repayment phase.
 

Home Equity Loan:

  • Lump Sum: You receive the entire loan amount upfront.
  • Fixed Interest Rate: The interest rate remains the same for the loan's term, leading to predictable monthly payments.
  • Fixed Repayment Schedule: You repay the loan with fixed monthly payments over a set period (e.g., 5-15 years).
  • Secured by Home Equity: Your home serves as collateral, meaning you risk losing your home if you default on the loan.

HELOC (Home Equity Line of Credit):

  • Revolving Credit: You can borrow and repay funds as needed, like a credit card.
  • Variable Interest Rate: The interest rate can fluctuate based on market conditions, leading to potentially variable payments.
  • Draw Period: You can obtain advances of credit and make minimum payments based on contract terms. When the draw period ends, you will no longer be able to take advances, and your payment will be based on an amount to pay the loan in full by the maturity date.
  • Secured by Home Equity: Your home serves as collateral.
  • Interest-Only Payments: During the draw period, you may choose to make interest-only payments that may be subject to a minimum amount.

A home equity line of credit contains a variable rate. The Annual Percentage Rate (APR) is a rate that remains variable for life of loan and is based on the published Wall Street Journal Prime Rate (index) plus a margin..

  • Sufficient equity: You'll need to have at least 15% to 20% equity in your home, depending on geographic restrictions to get a HELOC.
  • Minimum credit score: You'll need a credit score of at least 680 to qualify for a Flagstar HELOC.
  • Credit history: Lenders will perform a hard credit check to assess your ability to manage debt responsibly.
  • Debt-to-income (DTI) ratio: In addition to checking your credit score and history, lenders want to make sure that you’ll be able to afford your monthly loan payments. DTI ratio represtnts how much income you have available after addressing your current debt. A lower debt-to-income ratio usually works in your favor.

You can apply online, or by contacting a Flagstar loan officer. You’ll be asked to verify your identity, income, assets, and property details. Have the following information ready:

  • Your name, date of birth, and Social Security number.
  • Your current address (and previous address, depending on how long you’ve been in your current home).
  • Your employer’s name and address.
  • A valid copy of a government-issued photo ID, such as a driver’s license or state identification card.

The lender will ask your permission before pulling credit to see if you qualify.

Fees to open a HELOC generally range between $0 and $10,000. A fee of $75, waived for the first year, will be charged annually thereafter.

Flagstar will give you a 0.25% discount on your HELOC rate when you sign up for and maintain automatic monthly payments from your Flagstar savings or checking account.

Get started with a great HELOC rate today

Icon of a computer monitor and smart phone

Apply online

Start your home equity 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

Call us to apply

We'll help you start your home equity application, and answer all your questions.

Related to home equity lines of credit:

A parent and child high five each other

Mortgage Refinance

With a mortgage refinance, you could lower your payments, get a better rate, or free up cash. 
Person smiling and sitting with a tablet device and a credit or debit card in hand

Flagstar Visa® Credit Cards

Choose a credit card with the perks you want, like cash back, rewards, and more.
Person on tablet with bank card

Checking Accounts

Explore our personal checking account options to find the right fit for you. 

1Forbes has named Flagstar one of the best HELOC lenders of 2026: https://www.forbes.com/advisor/home-equity/best-heloc-lenders/#flagstar_bank

2Introductory Annual Percentage Rate (APR) is available for the first 6 billing cycles after the account open date and is subject to initial draw requirements and other exclusions. For lines of credit greater than $50,000, the initial draw must be the greater of 50% of the full line amount or $50,000. For lines of credit less than $50,000, the initial draw must be the full line amount. For properties in Texas, an initial draw is not required; however, if a draw is taken it must be for at least $4,000. Introductory rates are available for new HELOC accounts that are secured by a primary residence. Purchase transactions or refinances of existing Flagstar loans are not eligible for introductory rates. No other discounts are available during the introductory period. Offer can expire at any time.

3This sample APR is for illustrative purposes only and is subject to change. It is based on the Wall Street Journal Prime Rate (WSJPR) Index as of 6/4/2026, plus a margin. Sample APR reflects a primary residence transaction (outside the states of CA or NY) with the following characteristics: qualifying credit score of 760 or higher; loan amount of $200,000 or higher; Combined Loan to Value (CLTV) of 60% or lower. It also includes a 0.250% interest rate discount for setting up automated monthly payments from a Flagstar deposit account prior to closing and continuously maintaining automated payments after closing. Note: ACH discount will only apply after promotional rate expires.

Important Information. A HELOC is a revolving line of credit secured by a 1-4 unit residential or modular home. After any introductory period ends, the APR and payments will be based on the WSJPR Index plus a margin. Since the WSJPR Index may change periodically, the APR and payments are variable and may increase or decrease multiple times over the life of the HELOC. The margin is fixed and is based on specific characteristics of the credit application, including credit score, line amount, property type, lien position, CLTV and geographic location. The APR will never exceed 21% or be less than the margin. For lines with an outstanding balance during the draw period, minimum monthly payments are due and depend on the outstanding balance, finance charges and other costs and fees. If interest-only payments are made during the draw period, making the minimum payment may not reduce the principal balance. During the repayment period the minimum payment for each billing cycle will be the greater of $100 or the amount sufficient to repay the account balance in full by the maturity date in substantially equal payments plus the finance charges that accrued for that billing cycle and other fees, charges, and costs. Fees to open a HELOC generally range between $0 and $10,000. A fee of $75, waived for the first year, will be charged annually thereafter. Flagstar pays customary closing fees which does not include additional required fees for loans over $500,000 or some government taxes and fees. If the HELOC account is terminated within 36 months of account opening, borrower repayment of closing fees will be required. Borrower is also responsible for making separate payments for property insurance and flood insurance (if loan is in a flood zone). HELOCs are offered in all 50 states and the District of Columbia.

Properties in Texas. Property type is limited to 1-unit residential structure with a maximum CLTV of 80%. There are no annual fees nor requirement for repayment of closing fees. For properties in Texas, an initial draw is not required; however, if a draw is taken it must be for at least $4,000. (All promo rate HELOCs must meet the initial draw requirement regardless of the property state.)

Considerations: Programs for qualified borrowers. All borrowers are subject to credit approval, underwriting approval, and product requirements. Fees and charges may vary by state and are subject to change without notice. Some restrictions may apply. Not a commitment to lend. Consolidating or refinancing debt may increase the time and/or the finance charges/total loan amount required to repay the debt. 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 within the loan documents you are provided at loan closing.

Flagstar Bank NMLS# 417490