A home equity loan can take you there.
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Before you go
An unforgettable wedding celebration, school tuition, energy-efficient home upgrades, and more are possible with a home equity loan (HELOAN). Flagstar’s home equity loans have a lower rate than most credit cards, making them a smart way to pay off high-interest debt, too.
Whether there’s something exciting on the horizon or you’re starting over after a setback, a home equity loan from Flagstar Bank can take you where you want to go.
Home equity loan features:
- Loan amounts from $10,000 to $1 million
- Fixed home equity rates for the life of your loan
- HELOAN terms available for 10, 15, or 20 years
- 0.25% interest rate discount with automatic monthly payments from a Flagstar account1
- One-time, lump-sum payout—ideal for larger expenses or purchases
It’s easy to apply for a HELOAN.
Apply online at your convenience.
Just answer a few questions about yourself, your income, and your mortgage.
Work with an experienced lender.
We're here to answer your questions so you're confident that a HELOAN is right for you.
Finish your HELOAN.
Once we’ve verified your information, we’ll let you know if you’ve been approved and schedule your closing.
What you can pay for with a HELOAN
Home Improvements
Pay for a new addition, kitchen remodel, or home office upgrade.
Tuition Payments
Invest in your or someone else’s future.
Consolidate Debt
Spend less on high-interest debt.
Major Purchases
Cover business, medical, or emergency expenses.
FAQs
A home equity loan uses the equity in your home as collateral. (Equity is the home’s value after subtracting the mortgage balance and any other debts that use the home as collateral.)
You can apply for a specific loan amount or ask one of our experienced bankers to help you find the maximum amount to apply for. The total amount of the home equity loan and your mortgage balance can be up to 85.00% of the home’s value.
The loan approval and amount are based on income, debt, credit history, home equity, and other factors.
Once the loan is approved, you’ll receive the entire amount at once. You can use the funds however you’d like. Many of our customers use their home equity loans to pay for home renovation, weddings, supporting a new child, school, emergencies, and other significant expenses.
HELOANs have a fixed interest rate, so you’ll make the same monthly payment until the loan is repaid.
There are no rules that dictate how to use your home equity loan, but many people apply for a HELOAN to pay for large expenses like these:
- Remodel and renovate—Bring your home to life with a sparkling new kitchen, bigger bathroom, home gym, professional landscaping, or technology upgrades.
- Home maintenance—Keep the bones of your house in good shape with a new roof, energy-efficient furnace, updated windows, and modern plumbing.
- Debt consolidation—Potentially lower your monthly bills and boost your credit score by paying off high-interest credit cards, medical bills, and other debt.
- Emergencies—Cover your expenses during a major life event so you can focus on what’s important.
There are a few significant differences between HELOANs and HELOCs:
- The funds
A home equity loan gives you the entire loan amount as a lump sum.
A home equity line of credit lets you draw funds as needed. - The interest rate
A home equity loan has a fixed interest rate with predictable monthly payments.
A HELOC has a variable interest rate based on Wall Street Journal prime rate, so the monthly payment can fluctuate. - The payment period
A home equity loan can be for 10, 15, or 20 years.
A HELOC has a 10-year draw period and a 20-year repayment period. During the draw period, you can make payments on interest only or interest and principal.
There are several ways to keep costs down on a home equity loan:
- Receive a 0.25% interest rate discount by setting up automatic monthly payments from a Flagstar checking or savings account when you apply for the loan.
- The interest on your loan may be tax-deductible. Ask your tax advisor if that’s the case for your specific situation.
You have several convenient ways to make payments on your HELOAN:
- Sign up for MyLoans to set up automatic payments.
- Pay at a nearby Flagstar branch. Find the closest branch to you here.
- Pay by phone at 866-837-4539. You may have to pay a convenience fee for this option.
- Mail a check to the address below. Please put your loan number in the memo section.
Flagstar Bank
P.O. Box 660263
Dallas, TX 75266-0263
Yes. You need to have equity in your home to apply for a HELOAN, but you don’t need a mortgage.
Your HELOAN uses your home equity as collateral. When you sell your home, you’ll need to pay back the loan before or during closing. It’s common for people to use the proceeds from the sale to pay off their HELOAN at closing.
Get Started
Apply online.
It’s easy to apply for a HELOAN.
For qualified borrowers. Subject to credit approval, underwriting approval, and lender terms and conditions. Programs subject to change without notice. Some restrictions may apply. Not a commitment to lend.
1Flagstar Home Equity Loan (HELOAN) is a fixed-rate and term loan for loan amounts of $10,000 to $1 million with amortization options of 10, 15, and 20 years secured by primary residence; specifically, 1- to 4-unit residential homes and modular homes. The annual percentage rate (APR) of 8.04% APR is effective as of 12/20/2023. The APR calculation is based on a $50,000 loan amount, 20-year term loan in second lien position, with an 80% or lower combined loan-to-value (CLTV), and 240 monthly payments of $418.22, and reflects a 0.25% interest rate discount for monthly automatic payments established and elected at the time of application to be paid from a borrower's Flagstar Bank deposit account. The actual APR may vary due to loan programs being offered, lien position, credit history, rates in effect at the time of application, loan-to-value (LTV), amortization terms, and other factors. The APR is based on loan amount, loan term, interest rate, and includes an estimated 15 days of prepaid interest. The APR may change if the loan amount, interest rate, loan term, or number of days of prepaid interest changes. Interest rate discount of 0.25% is available for HELOANs with monthly automatic payments (ACH) established and elected at the time of application to be paid from a borrower’s Flagstar Bank deposit account. APR is subject to change at any time prior to consummation. No bank-imposed closing costs. Borrower will be responsible for prepaid interest and all state and government specific charges and taxes. Property insurance is required; if the collateral is determined to be in an area having special flood hazards, flood insurance will be required as well. Borrower will make monthly principal and interest payments. Borrower is responsible for paying separate property taxes and insurance. Rates apply to new HELOAN accounts and may not apply to existing HELOAN accounts. Borrowers must have verifiable income. Offer not valid in Texas, Puerto Rico, or the U.S. Virgin Islands. Not a commitment to lend. Programs available only to qualified borrowers. Subject to credit approval, underwriting approval, and lender terms and conditions. Programs subject to change without notice. HELOANs are only offered through a Retail Banking Branch. Some restrictions may apply.
CONSIDERATIONS: The annual percentage rate (APR), fees and charges may vary by product and property state. Consolidating or refinancing debt may increase the time and/or the finance charges/total loan amount required to repay the debt. 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 within the loan documents you are provided at loan closing.