Our take: We generally don’t recommend lenders with ratings below 4.0 due to concerns about transparency, customer experience, and overall value. If you’re looking for stronger options, check out our picks for the best HELOC lenders and best home equity loans instead.
Home Equity Line of Credit (HELOC)
- Offers both HELOCs and home equity loans
- High maximum borrowing amounts (up to $1 million)
- Discounts for automatic payments from a Flagstar account
- Doesn’t offer soft credit check prequalification
- Rates and terms are less transparent than other leading HELOC lenders
- Poor customer reviews on Trustpilot and Better Business Bureau (BBB)
| Rates (APR) | Starting at 4.99% for first 6 billing cycles, and then starting at 8.24% variable after intro period |
| Loan amounts | $10,000 – $1 million |
| Repayment terms | 10-year draw / 20-year repayment |
Home Equity Loan
- No closing costs on home equity loans (borrower pays prepaid interest and state fees)
| Rates (APR) | Starting at 8.30% fixed |
| Loan amounts | $10,000 – $1 million |
| Repayment terms | 10, 15, or 20 years |
Alternatives to Flagstar
Here’s how Flagstar compares to our team’s picks for the best HELOC lenders:
All loans are subject to credit approval, membership and loan program requirements. Not all applicants qualify for the lowest rates and may be offered credit at higher rates or with different terms. Hazard insurance and, if applicable, flood insurance is required. Borrowing limits apply based on your home’s value. Home loans are not available in Texas. Conditions and restrictions may apply. Rates, loan programs, terms, and conditions are subject to change without notice.
[1] APR = Annual Percentage Rate. The introductory APR is fixed for one year (twelve months). After one year, the APR is variable based on the U.S. Prime Rate as published in the Wall Street Journal, plus a margin. To obtain an introductory rate, borrower(s) must meet credit and loan program requirements, including, but not limited to: (1) maximum Combined Loan-to-Value (CLTV) of 75%; (2) minimum VantageScore 4.0 credit score of 720; (3) an initial draw of at least $25,000 is taken at account opening and the balance must be maintained for at least 12 consecutive months; (4) automatic payments from a FourLeaf personal savings or checking account for the monthly HELOC payments; and (5) borrower must not have had a previous introductory rate for a FourLeaf HELOC within the past five years. Failure to meet the introductory APR conditions may result in the loss of the introductory APR, meaning the APR will change to the standard APR and will be subject to those conditions. Loan amounts over $500,000 are not available for the introductory rate.
[2] The standard APR is variable based on the U.S. Prime Rate as published in the Wall Street Journal, plus a margin (if applicable) and is subject to increase after consummation. The current standard APR is as low as 7.00% as of 10/7/2026. Not all applicants will qualify for the lowest rate and may be offered credit at higher rates and other terms based on creditworthiness. The minimum floor APR is 3.25%. HELOC rates may not exceed the maximum legal limit for Federal credit unions (currently 18%). The Prime Rate as of 10/7/2026 = 7.00%. Rates shown are based on a borrower’s primary residence, a maximum CLTV of 65%, a minimum initial draw of $25,000 taken at HELOC account opening†, and automatic payments‡ made from a FourLeaf personal savings or checking account. For Closing costs, see [3] below.
† Initial Draw of $25,000 or more: The APR includes a 0.25% discount if a Variable Rate Advance of $25,000.00 or more is drawn at account opening and the outstanding balance is maintained for at least twelve (12) consecutive months. The APR will increase by 0.25% if at any time your outstanding HELOC balance falls below $25,000.00 within the first twelve (12) months of account opening.
‡ Automatic Payments: The APR includes a 0.25% discount if your monthly HELOC payments are automatically withdrawn from your FourLeaf savings or checking account. The APR will increase by 0.25% if at any time your monthly HELOC payments are no longer automatically withdrawn from your FourLeaf savings or checking account.
[3] Closing costs for the first $500,000 will be paid by FourLeaf but must be repaid by the borrower(s) if the HELOC is closed within first 36 months of account opening. These fees generally range between $500.00 and $15,000.00 depending on the line amount, property value, location, and/or property type. Line amounts over $500,000 may be available on a case-by-case basis to qualified applicants, are not eligible for the discounted introductory rate at any time, and the borrower(s) will be responsible for mortgage-related taxes and title insurance costs on the line amount over $500,000 (up to the approved credit limit). The total third party fees generally range between $500.00 and $60,000.00 depending on the line amount, property value, location, and/or property type. Property insurance (including flood insurance, if applicable) is required.
All loans are subject to credit approval, membership and loan program requirements. Not all applicants qualify for the lowest rates and may be offered credit at higher rates or with different terms. Hazard insurance and, if applicable, flood insurance is required. Borrowing limits apply based on your home’s value. Home loans are not available in Texas. Conditions and restrictions may apply. Rates, loan programs, terms, and conditions are subject to change without notice.
[1] APR = Annual Percentage Rate. The introductory APR is fixed for one year (twelve months). After one year, the APR is variable based on the U.S. Prime Rate as published in the Wall Street Journal, plus a margin. To obtain an introductory rate, borrower(s) must meet credit and loan program requirements, including, but not limited to: (1) maximum Combined Loan-to-Value (CLTV) of 75%; (2) minimum VantageScore 4.0 credit score of 720; (3) an initial draw of at least $25,000 is taken at account opening and the balance must be maintained for at least 12 consecutive months; (4) automatic payments from a FourLeaf personal savings or checking account for the monthly HELOC payments; and (5) borrower must not have had a previous introductory rate for a FourLeaf HELOC within the past five years. Failure to meet the introductory APR conditions may result in the loss of the introductory APR, meaning the APR will change to the standard APR and will be subject to those conditions. Loan amounts over $500,000 are not available for the introductory rate.
[2] The standard APR is variable based on the U.S. Prime Rate as published in the Wall Street Journal, plus a margin (if applicable) and is subject to increase after consummation. The current standard APR is as low as 7.00% as of 10/7/2026. Not all applicants will qualify for the lowest rate and may be offered credit at higher rates and other terms based on creditworthiness. The minimum floor APR is 3.25%. HELOC rates may not exceed the maximum legal limit for Federal credit unions (currently 18%). The Prime Rate as of 10/7/2026 = 7.00%. Rates shown are based on a borrower’s primary residence, a maximum CLTV of 65%, a minimum initial draw of $25,000 taken at HELOC account opening†, and automatic payments‡ made from a FourLeaf personal savings or checking account. For Closing costs, see [3] below.
† Initial Draw of $25,000 or more: The APR includes a 0.25% discount if a Variable Rate Advance of $25,000.00 or more is drawn at account opening and the outstanding balance is maintained for at least twelve (12) consecutive months. The APR will increase by 0.25% if at any time your outstanding HELOC balance falls below $25,000.00 within the first twelve (12) months of account opening.
‡ Automatic Payments: The APR includes a 0.25% discount if your monthly HELOC payments are automatically withdrawn from your FourLeaf savings or checking account. The APR will increase by 0.25% if at any time your monthly HELOC payments are no longer automatically withdrawn from your FourLeaf savings or checking account.
[3] Closing costs for the first $500,000 will be paid by FourLeaf but must be repaid by the borrower(s) if the HELOC is closed within first 36 months of account opening. These fees generally range between $500.00 and $15,000.00 depending on the line amount, property value, location, and/or property type. Line amounts over $500,000 may be available on a case-by-case basis to qualified applicants, are not eligible for the discounted introductory rate at any time, and the borrower(s) will be responsible for mortgage-related taxes and title insurance costs on the line amount over $500,000 (up to the approved credit limit). The total third party fees generally range between $500.00 and $60,000.00 depending on the line amount, property value, location, and/or property type. Property insurance (including flood insurance, if applicable) is required.
All loans are subject to credit approval, membership and loan program requirements. Not all applicants qualify for the lowest rates and may be offered credit at higher rates or with different terms. Hazard insurance and, if applicable, flood insurance is required. Borrowing limits apply based on your home’s value. Home loans are not available in Texas. Conditions and restrictions may apply. Rates, loan programs, terms, and conditions are subject to change without notice.
[1] APR = Annual Percentage Rate. The introductory APR is fixed for one year (twelve months). After one year, the APR is variable based on the U.S. Prime Rate as published in the Wall Street Journal, plus a margin. To obtain an introductory rate, borrower(s) must meet credit and loan program requirements, including, but not limited to: (1) maximum Combined Loan-to-Value (CLTV) of 75%; (2) minimum VantageScore 4.0 credit score of 720; (3) an initial draw of at least $25,000 is taken at account opening and the balance must be maintained for at least 12 consecutive months; (4) automatic payments from a FourLeaf personal savings or checking account for the monthly HELOC payments; and (5) borrower must not have had a previous introductory rate for a FourLeaf HELOC within the past five years. Failure to meet the introductory APR conditions may result in the loss of the introductory APR, meaning the APR will change to the standard APR and will be subject to those conditions. Loan amounts over $500,000 are not available for the introductory rate.
[2] The standard APR is variable based on the U.S. Prime Rate as published in the Wall Street Journal, plus a margin (if applicable) and is subject to increase after consummation. The current standard APR is as low as 7.00% as of 10/7/2026. Not all applicants will qualify for the lowest rate and may be offered credit at higher rates and other terms based on creditworthiness. The minimum floor APR is 3.25%. HELOC rates may not exceed the maximum legal limit for Federal credit unions (currently 18%). The Prime Rate as of 10/7/2026 = 7.00%. Rates shown are based on a borrower’s primary residence, a maximum CLTV of 65%, a minimum initial draw of $25,000 taken at HELOC account opening†, and automatic payments‡ made from a FourLeaf personal savings or checking account. For Closing costs, see [3] below.
† Initial Draw of $25,000 or more: The APR includes a 0.25% discount if a Variable Rate Advance of $25,000.00 or more is drawn at account opening and the outstanding balance is maintained for at least twelve (12) consecutive months. The APR will increase by 0.25% if at any time your outstanding HELOC balance falls below $25,000.00 within the first twelve (12) months of account opening.
‡ Automatic Payments: The APR includes a 0.25% discount if your monthly HELOC payments are automatically withdrawn from your FourLeaf savings or checking account. The APR will increase by 0.25% if at any time your monthly HELOC payments are no longer automatically withdrawn from your FourLeaf savings or checking account.
[3] Closing costs for the first $500,000 will be paid by FourLeaf but must be repaid by the borrower(s) if the HELOC is closed within first 36 months of account opening. These fees generally range between $500.00 and $15,000.00 depending on the line amount, property value, location, and/or property type. Line amounts over $500,000 may be available on a case-by-case basis to qualified applicants, are not eligible for the discounted introductory rate at any time, and the borrower(s) will be responsible for mortgage-related taxes and title insurance costs on the line amount over $500,000 (up to the approved credit limit). The total third party fees generally range between $500.00 and $60,000.00 depending on the line amount, property value, location, and/or property type. Property insurance (including flood insurance, if applicable) is required.
Table of Contents
What is Flagstar Bank?
Flagstar Bank is a full-service lender with branches in California, Indiana, Michigan, Ohio, and Wisconsin. It offers both home equity lines of credit (HELOCs) and home equity loans (HELOANs), but it lacks the transparency, speed, and customer satisfaction of top-rated lenders.
Flagstar Bank HELOC
Rates and terms
| Intro rate (APR) | 4.99% for the first 6 billing cycles |
| Ongoing rate (APR) | As low as 8.24% variable |
| Loan amounts | $10,000 – $1 million |
| Draw period | 10 years |
| Repayment period | 20 years |
| Rate discounts | 0.25% with automatic payments from a Flagstar account |
| Fees | $75 annual fee (waived first year); no closing fees if HELOC kept open for 36 months |
What to know:
- Flagstar’s intro rate is competitive, but top HELOC lenders, including Figure, Aven, and FourLeaf Federal Credit Union are also competitive and may have lower fees.
- You can’t prequalify with a soft credit check, unlike with Figure and Aven.
- Poor customer reviews note communication delays and unexpected changes in approved amounts. Aven’s HELOC earns the best customer reviews of all the lenders our team rated.
How much can I borrow?
You can borrow between $10,000 and $1 million, depending on your home equity and your creditworthiness. Flagstar allows a maximum combined loan-to-value (CLTV) of 89.99%. That means your current mortgage plus your HELOC cannot exceed 90% of your home’s market value.
Eligibility
Flagstar does not disclose minimum credit score or income requirements for HELOC approval. You must have sufficient equity and a CLTV under 90%. Unlike Figure and Aven, it doesn’t offer prequalification with a soft credit check to assess eligibility without affecting your credit.
Fees and costs
- Annual fee: $75 (waived the first year)
- Closing costs: None if you keep the HELOC open for at least 36 months; otherwise, closing costs may apply
- Appraisal: May be required, but fee details are not disclosed
Flagstar Bank home equity loan
Rates and terms
| Fixed rates (APR) | As low as 8.30% |
| Loan amounts | $10,000 – $1 million |
| Repayment terms | 10, 15, or 20 years |
| Rate discounts | 0.25% with automatic payments from a Flagstar account |
| Fees | No closing costs, but borrower pays prepaid interest and state/government fees |
What to know:
- No published minimum credit score or income requirement makes it hard to pre-screen eligibility.
- Funding speed is not disclosed. Our top-rated home equity loan lenders are more transparent.
How much can I borrow?
Flagstar offers home equity loans from $10,000 up to $1 million, depending on your equity and financial profile. Its maximum CLTV is 89.99%, similar to the HELOC.
Eligibility
The bank does not list specific credit score or income requirements. Approval is based on home equity, CLTV, credit, and financial history. Flagstar does not provide a soft credit check prequalification process.
Fees and costs
- Closing costs: None
- Other costs: Borrowers pay prepaid interest plus any applicable state and government fees.
- Appraisal: Likely required, but details and fees are not disclosed publicly.
Alternatives
Here’s how Flagstar’s home equity loan compares to several of our team’s picks for top lenders.
Note: Credit score requirements vary by lender, and you may need a higher score for larger lines of credit or to secure the lowest rates. If your score is higher than 580, see our highest-rated HELOCs for fair credit. Below 580, look into home equity agreements as an alternative.
Pros and cons
Pros
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Offers both HELOC and home equity loan options
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High max borrowing limits ($1 million)
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Low intro HELOC rate for 6 months
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Rate discount for autopay
Cons
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No soft credit check prequalification
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Poor Trustpilot and BBB reviews
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Less transparent than several competitors
Appraisal process
Flagstar does not publish details about its appraisal process, but generally:
- An in-person appraisal may be required to determine market value, especially for higher loan amounts.
- Appraisers note property condition, improvements, and comparable sales.
- Fees for appraisal may be waived if Flagstar waives other closing costs, but this is not guaranteed.
How to apply
You can apply:
- Online: Submit your requested loan or line of credit amount, purpose, property details, and personal financial information on Flagstar’s website.tru
- By phone: Call 866-379-0270 to apply with a loan advisor.
Unlike several top competitors, Flagstar does not offer prequalification with a soft credit pull.
Customer reviews
| Source | Customer rating | Number of reviews |
| Trustpilot | 1.4/5 | 80 |
| BBB | 1.05/5 | 190 |
- Customers mention miscalculated monthly payments and unresolved issues.
- Reports of approval amounts changing multiple times before eventual denial.
Contact and customer service
Here’s how to contact Flagstar:
- Phone: 1-800-968-7700 Monday through Friday, 7:30 a.m. to 8 p.m. Eastern; Saturday, 7:30 a.m. to 4 p.m. ET
- Online messaging: Log in to your account to send a secure message.
- Chat: Available on homepage.
LendEDU bottom line: Flagstar offers standard home equity options with high borrowing limits, but its poor customer reviews, lack of transparency, and limited unique benefits make it less attractive than leading alternatives. Compare rates with top lenders before applying.
About our contributors
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Written by Zina KumokZina Kumok is a personal finance writer dedicated to explaining complex financial topics so real people can understand them. As a former newspaper reporter, she has covered everything from murder trials to the Final Four.
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Edited by Kristen Barrett, MATKristen Barrett is a managing editor at LendEDU. She lives in Cincinnati, Ohio, with her wife and their pack of senior rescue dogs. She has edited and written personal finance content since 2015.