Flagstar Bank: 2026 Home Equity Review

How Bankrate scored Flagstar Bank 

Affordability: 3.4 stars 

Flagstar earns 3.4 out of 5 stars for affordability because of its higher-than-average standard APR and closing fees. 

• APR: Flagstar’s APR for its HELOC is slightly above Bankrate’s national average. The company also offers a low introductory APR for the first six billing cycles on lines of credit over $50,000 or when the initial draw exceeds half the full line amount.
• Fees: HELOC closing fees can range from $0 to as much as $10,000. All HELOCs come with a $75 annual fee, which is waived for the first year. You will also need to pay a prorated portion if you close the account within three years.

Availability: 4.3 stars 

Flagstar earns a 4.3 out of 5 for availability thanks to its loan offerings, loan amount range and nationwide reach — but its high minimum credit score and draw requirements drag it down a bit.

• Footprint: Flagstar is licensed to provide HELOCs and home equity loans in all states and Washington, D.C.
• Credit score: Flagstar’s minimum requirement for home equity loans and HELOCs is 700, on the high side of average among home equity lenders. 
• Loan minimum: Flagstar's minimum loan amount is $10,000 — ideal for borrowers who only need a small amount, and low compared to other lenders’ minimums. 
• Draw requirement: Here, Flagstar Bank is fairly restrictive. For lines of credit of $50,000 or less, you must take out the full amount as your initial draw. If your line of credit exceeds $50,000, you must withdraw 50% of the total line amount, or $50,000, whichever is greater. A draw isn’t required at closing, but any sum taken out during the draw period must be at least $4,000. 

Borrower experience: 4 stars

Flagstar Bank’s low introductory APR and multiple customer contact methods help it score 4 out of 5 stars for borrower experience.

• Rate transparency: Flagstar’s site advertises its introductory HELOC APR and lowest HE Loan APR. It also indicates how high HELOC rates can rise (21%).
• Customer service: To apply for a home equity product with Flagstar Bank, you can visit a local branch, call the bank at 1-855-750-0804 or apply online. You can also phone 1-888-248-6423, Monday through Friday from 8 a.m. to 10 p.m. ET, and Saturday and Sunday from 8 a.m. to 5 p.m. ET.
• Convenience: Customers can reach out to Flagstar Bank at its approximately 340 branches, though they are mostly restricted to the New York/New Jersey metropolitan region and the upper Midwest.

Flagstar Bank’s reputation 

Flagstar Bank is not rated or accredited by the Better Business Bureau (BBB). Reviewers gave the bank a 1-star rating, with most complaining about communication issues. Similarly, Flagstar receives 1.4 stars, or a ‘bad’ rating, on Trustpilot, with some users highlighting a lack of professionalism.