Figure
- HELOC
- From 7.85%
- 640 (680 on a second home)
- 888-819-6388 or loans@figure.com
Founded in 2018, Figure is an online lender offering home equity lines of credit (HELOCs) in 46 states (excluding Delaware, Kentucky, New York and West Virginia). Figure says it can get you access to cash in as little as five days, compared to 30 to 60 days from most other lenders.
Similar to a home equity loan, Figure’s HELOC has a fixed-interest rate component that could be a good option for some homeowners.
Figure’s unique HELOC offering, streamlined online application and speedy timeline for receiving funds helped it land on our list of the best HELOC lenders.
Figure: At a glance
| Types of home equity loans | HELOC |
|---|---|
| APR range | From 7.85% |
| Loan amounts | $15,000 to $400,000 |
| Credit score requirements | Minimum 640 (680 on a second home) |
| Repayment terms | 5-, 10-, 15- and 30-year options |
| Average time for approval | Five minutes |
Homeowners who need access to funds quickly will benefit the most from a Figure HELOC, as its five-day turnaround is one of the shortest available. Those looking for the flexibility of a HELOC but with the fixed-rate security of a home equity loan may lean toward Figure.
Pros and cons
Pros
Fast access to funds. Figure says it can get you access to funds in just five days, and the application process takes just five minutes to complete online.
Fixed interest rates. Although your interest rate will vary per withdrawal, your rate will be locked on each individual withdrawal. Even if rates increase and you pay a slightly higher rate on your most recent withdrawal, your monthly payments are more consistent than with a standard HELOC.
No in-home appraisal required. It’s typical for lenders to request a new home appraisal, but scheduling the appraiser can slow the approval process. Figure’s HELOC avoids this delay by using its own algorithm to determine the most up-to-date fair market value of your property.
Primary and secondary residences qualify. Many lenders require you to occupy the property as your main residence, but Figure allows you to use a HELOC on secondary properties.
Cons
Withdrawal of full amount. Similar to a home equity loan, you must withdraw the entirety of your HELOC balance upfront, minus your origination fee. You’ll still be able to make additional draws as you pay down your balance.
Origination fees. Many lenders waive the origination fee as a part of their HELOC offering, but Figure requires you to pay an origination fee of up to 4.99% of your initial draw.
Short loan term to lock in the best rate. You must accept a short loan term of five years to qualify for Figure’s lowest APR. A five-year loan term may be unrealistic for homeowners, as one of the benefits of taking out a HELOC is the long draw period of 10 years and repayment period of 20 years.
Low maximum loan amount. Figure’s loan offerings max out at $400,000 for its most qualified borrowers, which is significantly lower than some other lenders.
Home equity loan options
Figure offers a unique HELOC product that has elements of a home equity loan. When you take out a Figure HELOC, you must draw the entire loan amount upfront, minus an origination fee of up to 4.99% of the initial draw.
You’ll get a fixed interest rate that will stay the same over the life of your loan. After you start paying back your initial draw, you can make additional draws if you need more cash.
These draws are available for two to five years after your origination date, depending on your loan term. Each additional draw will be assigned a new fixed interest rate, which may be higher or lower than your initial rate depending on market conditions. By contrast, most other HELOCs let you draw what you need when you need it at a variable interest rate.
Figure offers HELOCs between $15,000 and $400,000, depending on your credit score, loan-to-value ratio, property type and location.
Fees
Figure does not charge account opening fees, maintenance fees or prepayment penalties. Its main fee is an origination fee, which can cost you up to 4.99% of your initial draw (in this case, your total loan amount).
Your fees and terms may vary depending on which state you live in, as well as personal financial factors such as your credit score. You’re also required to have property insurance -- and flood insurance if your home is in a flood zone -- with a Figure HELOC, which is standard across most lenders.
How to qualify
First, you’ll want to make sure your property is in one of the 46 states Figure offers HELOCs in. If you’re situated in Delaware, Kentucky, New York or West Virginia, you won’t be able to get a Figure HELOC.
Figure requires borrowers to have a minimum credit score of 640 (680 if on an investment property). The higher your credit score, the more likely you are to qualify and at a lower interest rate. The loan limits and corresponding credit scores for five-year, 10-year, and 30-year HELOC terms are as follows:
Loan amounts based on credit score
| FICO score | Maximum loan amount |
|---|---|
| 640 to 679 | $125,000 |
| 680 to 699 | $200,000 |
| 700 to 739 | $250,000 |
| 740 to 759 | $350,000 |
| 760 and higher | $400,000 |
Figure doesn’t list its loan-to-value requirements on its website but says you can call 1-888-819-6388 if you have questions.
Like most other lenders, Figure will take a close look at your financial situation, including your income and how much debt you have when considering whether to approve you for a loan.
How to apply for a HELOC with Figure
Applying for a loan with Figure is done online, with the process taking as little as five minutes, thanks to its streamlined digital application process (which includes an automatic home appraisal too). After you supply your personal information -- home address, date of birth and contact information -- Figure will run a soft credit check for preapproval that won’t ding your credit report, and it will provide you with your personal rate. If you’re satisfied with your rate offer, you can proceed to the next step, which is the hard credit check. You’ll need to provide your banking information for this part of the process.
Although Figure uses an e-notary service to have you verify and sign documents, some states and counties may require you to see an in-person notary.
Customer service
Figure says its average response time for online support is less than 45 seconds, and live chat is accessible from 6 a.m. to 6 p.m. PT daily (except for major US holidays). You can also email or call the digital lender for support. Below is a list of Figure’s specific extensions and emails.
Live phone support
- HELOC and personal loan support: 888-819-6388
- Active loan support: 888-527-1950
Email support
- General support: help@figure.com
- Active loan support: myaccount@figure.com
- HELOC questions: loans@figure.com
