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Home equity lines of credit (HELOC) at your local bank can involve a lot of paperwork, approvals and time to fund. Figure Lending LLC (Figure) is looking to up the ante with quick applications and funding. But lower credit borrowers will be on the hook for high origination fees.
Primary home: 620,
Secondary home: 680
Minimum credit score
Not available in: DE, HI, KY, MD, NY, SC, TX, UT, WV
State availability
Loan products offered | HELOC |
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Minimum credit score | Primary home: 620, Secondary home: 680 |
State availability | Not available in: DE, HI, KY, MD, NY, SC, TX, UT, WV |
NMLS # | 1717824 |
Review by
Matt Miczulski is an investments writer at Finder, where he covers market news and digs into brokerages and investments to help readers make informed financial decisions. His expertise and writing have been featured on CBS, MSN, Best Company and Consolidated Credit, among others. Before joining Finder, Matt covered everything from finance news and banking to debt and travel for FinanceBuzz. He earned a BA in history from William Paterson University.
Other lenders should take a page out of Figure’s playbook when it comes to its application process. Fully online, you can apply and get approved in five minutes and have your loan funded within days. It’s quick and straightforward, and there’s no waiting around for a loan officer to contact you to complete your application. But you won’t get in-person support with this digital disruptor, and loans aren’t available in all 50 states.
And while the company offers competitive rates and steers away from common fees like account opening fees, maintenance fees and prepayment penalties, its origination fee is high. Figure charges an origination fee of up to 4.99%. Depending on the amount of your HELOC, this can add up quickly. Granted, the exact amount of the origination fee varies depending on your credit profile and the state where your property is located. So you could qualify for a rate lower than 4.99%.
In any case, if you’d rather apply with a more established lender or want to shop for a lender with a more affordable origination fee, compare other home equity loans to find a fit with your property and needs.
The Figure HELOC is a technologically driven loan best for good credit borrowers seeking a fast turnaround, fixed-rate HELOC who want to draw the entire amount at origination. Figure claims loans can be funded in as few as five days — much shorter than the usual 45-day processing times for a HELOC — and eligible borrowers can get up to $400,000.
Figure’s digital application process utilizes blockchain technology, which is faster and more secure than manual methods. But it charges an origination fee up to 4.99% depending on your credit score. This is higher than other lenders, like PNC Bank or Citizens Bank, that don’t charge any origination fees at all.
And unlike other HELOC lenders, Figure requires that you draw the full amount of your loan at origination. This means if you borrow $400,000, you could pay a hefty $19,960 just for opening the line.
On the plus side, you get a fixed rate with a Figure HELOC instead of an adjustable rate, which may be cost-effective when rates are rising. You can also pay off your Figure HELOC at any time during the repayment period (5, 10, 15 or 30 years) and get additional draws on the amount you paid down for a set number of years at a new variable rate.
But Figure’s potentially high origination fee is something to watch out for. We advise comparing the HELOC rates other lenders are offering and asking how easy it is to fix (lock in) the interest rate on the line and what your potential rate would be once it’s fixed. That way you can open a line, borrow what you need, fix the rate and not have to pay a potentially huge fee up front.
Figure offers two ways to tap into your home’s equity.
Most lenders require a minimum credit score of 620 to 680 to qualify for a HELOC, including Figure. Here are Figure’s basic requirements, although borrowers with credit scores over 720 will receive the best rates. You must:
Unlike most HELOC providers, Figure charges an origination fee on its HELOCs, which can be as low as 0% for excellent credit borrowers and as high as 4.99% for lower credit borrowers. You also have to take the full (100%) limit of your draw amount at the time of loan origination.
This can make a Figure HELOC potentially much more costly than a HELOC from a lender that doesn’t charge origination fees and doesn’t force you take the full draw at origination. Depending on your needs, it may be cheaper to get a HELOC that allows you to draw upon the line as needed and pay it off as you go, like a credit card.
However, Figure doesn’t charge closing costs and doesn’t charge for notary services. There’s also no late payment fees and you can repay your HELOC anytime during your repayment period without any penalties or fees.
BBB rating | F |
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Trustpilot rating | Excellent |
Customer reviews verified as of | 06 February 2022 |
The majority of reviewer on Trustpilot give Figure an “excellent” or “great” rating and positive reviews. Many of the positive reviews highlight the company’s quickness, efficiency and excellent service. Some reviewers mention that the lender’s hassle-free process is worth its high-end origination fee.
Unsatisfied customers complain about getting denied after receiving an invitation to apply, lengthy waiting times to speak with a representative and poor customer service. Figure isn’t accredited with the Better Business Bureau (BBB) and gets an F business rating, with a 2 out 5 star rating from a handful of customer reviews.
While reviews on sites like Trustpilot and BBB often represent extremes of the best and worst of experiences — it’s safe to say that Figure’s reviews are mixed. While some praise the company’s technology for offering speed and ease, others blame the impersonal nature of Figure’s lending processes for problems that aren’t easily remedied by human support.
Here are the steps to apply for a Figure HELOC:
If your loan is approved, a representative will reach out to schedule an e-notary session if it’s available in your area or an in-person session to complete the paperwork. You must complete the process in 14 days or restart your application.
To apply for a Figure HELOC, you must meet these requirements:
As with most lenders, Figure also requires that you have no delinquencies on your current mortgage in the last six months, no foreclosures in the past five years and no bankruptcy in the last seven years.
Have these documents ready before you apply:
Alternatively, explore these home loan options from Figure:
Make the most of your HELOC with Figure:
Use our tool to get personalized estimated rates from top lenders based on your location and financial details. Select whether you’re looking for a Home Equity Loan, HELOC or Cash-Out Refinance.
If you selected a home equity loan or HELOC, enter your ZIP code, credit score and information about your current home to see your personalized rates.
In the Cash-Out Refinance tab, select Refinance and enter your ZIP code, credit score and other property details to see what you might qualify for.
Figure is not currently available on Finder
Have you considered Rocket Mortgage?
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2 Comments
February 25, 2019
Do you attach a lien to my house if I decide to borrow from you?
February 26, 2019
Hello Karen,
Thank you for your comment.
Yes, a lien attached to your property puts others on notice that you owe the creditor money. Before you can sell your property and give a clear title to a buyer, you must pay off the lien.
The lien stays on the property unless it’s paid off.
Regards,
Jhezelyn