Skip to main content

Before you go

You are about to leave Flagstar is not responsible for the content on other sites.

Home Equity Line of Credit

Current variable rate as low as

9.49% APR1

Rate includes discount for automatic payments from a Flagstar deposit account.

Make it happen with a home equity line of credit.

Bring your dream to life. With a home equity line of credit, you could pay for an unforgettable wedding celebration, new home office, school tuition, or other major expense. HELOCs have a lower rate than most credit cards, so they can be a smart way to pay off high-interest debt, too.

Your HELOC funds will be there for you when you need them. So get started today and turn your next goal into a reality with a home equity line of credit.

Heloc features:

  • Line of credit amounts from $10,000 to $1 million
  • Variable interest rate based on The Wall Street Journal prime rate
  • 10-year draw period, 20-year repayment period
  • No bank closing fees if HELOC remains open for 36 months
  • 0.25% interest rate discount with automatic monthly payments from a Flagstar account1

One of the Best HELOC Lenders of 20232


What you can pay for with a HELOC

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.


A HELOC is a line of credit secured by your home that allows you to draw funds as needed.
Like most loans or credit cards, you need to apply and get approved for a HELOC up to a certain amount. Various factors determine your HELOC limit, such as income, debt, credit history, and the available equity in your home. (Equity is essentially the difference between your home’s value and your mortgage balance.)
The total amount of your HELOC and mortgage balance can be up to 85.00% of your home’s value.
HELOCs have a 10-year draw period followed by a 20-year repayment period. During the draw period, you can use your HELOC funds as needed and make monthly minimum payments. Any principal amount you repay during the draw period is available right away to draw again. You can draw and repay funds as many or as few times as you’d like.
During the repayment period, you can no longer draw HELOC funds. This is a time to repay any outstanding balance.

There are no rules that dictate how to use HELOC funds, but many people apply for a HELOC 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.
  • Peace of mind—Open a HELOC for fast access to cash if you need it.

In general, there are two significant differences between HELOCs and HELOANs:

  • The funds
    A home equity line of credit lets you draw funds as needed.
    A home equity loan gives you the entire loan amount as a lump sum.
  • The interest rate
    A HELOC has a variable interest rate based on Wall Street Journal prime rate, so your monthly payment can fluctuate.
    A home equity loan has a fixed interest rate with predictable monthly payments.
  • 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 when you open a HELOC:

  • Receive a 0.25% interest rate discount when you apply for a HELOC and set up automatic monthly payments from a Flagstar checking or savings account.
  • Avoid paying bank closing fees by keeping your HELOC open for 36 months. Closing fees can include title, appraisal, notary, recording, and other applicable fees.
  • Ask your tax advisor if the interest on your HELOC is tax-deductible for your specific situation.

Once you’re approved for a Flagstar Bank HELOC, you’ll have several options for drawing funds. You can use the HELOC checks that we’ll send you, stop by a local branch, or call 888-248-6423.
No Flagstar account? Open one before applying for a HELOC and save. You’ll receive a 0.25% interest rate discount when you set up automatic monthly payments through your new Flagstar account, but you have to do so during the HELOC application process.

Yes. When you open a HELOC, you can choose the payment option that works for you:

  • Interest‐only. Your minimum payment will be $100 or the sum of the finance charges, fees, and any other charges and costs for that billing cycle, whichever is larger.
  • Principal and interest option. Your minimum payment will be $100 or the amount sufficient to repay the account balance in full by the maturity date plus any finance charges, fees, and other charges and costs for that billing cycle.

You have several convenient ways to make payments on your HELOC:

  • 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

Definitely. You need to have equity in your home to get a HELOC, but you don’t need a mortgage.

Yes, many people open a HELOC to have cash available for emergencies.

Your HELOC uses your home equity as collateral. So when you sell your home, you’ll need to pay off any outstanding HELOC balance and close the account.

Get Started

Apply at your local branch

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.

1The sample annual percentage rate (APR) is based on the Wall Street Journal prime rate (index) as of 12/3/2023, plus a margin. The sample APR reflects a primary residence combined loan-to-value (CLTV) ratio of 80% or lower, and a 0.25% interest rate discount that is available for HELOCs with monthly automatic payments (ACH) established and elected at the time of application to be paid from a borrower’s Flagstar Bank deposit account. Actual APR remains variable for the life of the loan and will be based on the published Wall Street Journal prime rate (index) in effect, plus a margin determined by the borrower's credit qualifications, the amount of the line of credit, lien position, CLTV ratio, type of property, and other factors. Effective 12/3/2023, the current variable APR will range from 9.49% to 21.00%; it will not exceed 21.00% APR. Rates apply to new HELOC accounts and may not apply to existing HELOC accounts.

Flagstar Home Equity Line of Credit (HELOC) is a variable rate, revolving line of credit secured by a primary residence (1- to 4- unit residential homes and modular homes) or secondary residence (1- unit residential homes). HELOC loan amounts can vary between $10,000 and $1 million with a combined loan-to-value (CLTV) ratio of 85.00% or lower. Annual fee is $75 per year and is waived the first year. The HELOC must remain open for at least 36 months to avoid payment of closing fees, including, but not limited to, title, appraisal, document signing fee, and recording fees. Loan amounts greater than $500,000 require borrower-paid Lender's Title Insurance. Borrower is responsible for paying all applicable government taxes and fees at closing as permitted by law. There is a 10-year draw period in which minimum monthly payments are due. If interest-only payments are selected during the 10-year draw period, only paying the minimum payment may not reduce the principal balance. During the 20-year Repayment Period, if any, your minimum payment for each Billing Cycle will equal 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. The borrower is responsible for separate payments of property taxes and insurance. 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. The borrower must have verifiable income. Offer not valid in Texas, Puerto Rico, or the U.S. Virgin Islands. For qualified borrowers. Subject to credit approval, underwriting approval, and lender terms and conditions.

2Credible named Flagstar Bank one of the best Home Equity Line of Credit (HELOC) lenders of 2023.

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.

Flagstar Bank NMLS# 417490