Figure home equity review
Get approved in minutes and funded with no hidden fees.
Home equity lines of credit at your local bank can involve a lot of paperwork, approvals and time to fund. Figure Lending LLC (Figure) is looking to change up the game with quick applications and funding. But it’s a relatively new company, and its products aren’t available for all types of properties.
Our take on Figure home equity
If you’re after a home equity line of credit (HELOC), Figure offers a modern, technologically-driven application and approval process for its HELOCs. With Figure, your entire HELOC application is online, with virtual meeting and notary supports.
Instead of uploading documents, you link to your various financial and tax accounts for instant asset verification. This involves giving up credentials to your accounts, but Figure leverages blockchain technology — which is faster and more secure than manual verification methods.
Figure claims loans can be funded in as few as five days, and eligible borrowers can access up to $250,000 with a one-time origination fee equal to 4.99% of the initial draw. But even with great credit, drawing $50,000 out will cost a hefty $2,495. This is significantly higher than other lenders we’ve reviewed, who may not charge any origination fees at all.
What can I expect with Figure home equity products?
Figure is focused on an all-digital experience for its HELOCs, folding in a fully online application, virtual meetings and other digital features. That kind of technology offers a speedier turnaround than banks, with rates that are competitive to other lenders.
Figure’s marketing highlights a system that relies on blockchain technology to record and store your loan information after approval. Conventionally, the verification of this information is done manually, but blockchain technology can provide a more efficient and streamlined process. Though with that technology running behind the scenes, you aren’t likely to see a difference from a bank that uses traditional technology to store your loan.
If you qualify for a HELOC, you can borrow up to 80% of your home’s value with:
- Speedy prequalification. Fill out a simple online form and be prequalified in minutes with only a soft credit pull.
- A range of loans and terms. Loans range from $15,000 to $250,000. Apply for multiple loans within these limits at terms of 5, 10, 15 and 30 years.
- Minimal fees. You won’t pay appraisal, late payment or prepayment fees. Though expect to pay origination fees up to 4.99%, depending on your state and other qualifications.
- Fast funding. Have your loan funded in as few as five days when you close with Figure’s remote online notary and so long as Figure can readily verify that your property is in at least average condition.
Figure reviews are mixed but lean positive
Reviewers on Trustpilot have rated Figure 4.7 out of 5 stars based on nearly 1,500 reviews as of October 2021. Many of the positive reviews highlight the company’s quickness, efficiency and excellent service.
Some reviewers even noted that the lender’s hassle-free process is worth the premium — referring to its high-end origination fee. Unsatisfied customers complained about getting denied after receiving an invitation to apply, lengthy waiting times to speak with a representative and poor customer service.
Over on the Better Business Bureau (BBB) website, Figure has two different profiles. One is for the company’s North Carolina headquarters in Charlotte.
Here, the company has a C rating and is not BBB accredited. There are only two reviews on this profile, both of which have one star.
The other profile is for the company’s San Francisco, California office. On this profile, customers have rated Figure 2 out of 5 stars based on a total of 26 customer reviews. Again, the company is not BBB accredited, but on this profile, Figure is given an F rating.
The reviews between Trustpilot and the BBB illustrate vastly different customer experiences. But given that Figure’s Trustpilot profile has garnered well over a thousand reviews compared to those on the BBB, reviews on Trustpilot paint a more encompassing picture. Based on these reviews, Figure is up there with some of the most highly rated lenders.
Figure pros and cons
To better determine if Figure can meet your financing needs, take a closer look at its pluses and negatives.
- Fast prequalification and funding. Get prequalified in minutes and funding quickly after completion of the loan process.
- Minimal costs. You won’t pay costs to open or maintain an account, an appraisal fee or prepayment penalties for paying your loan off early.
- Competitive APRs. Figure’s APR rates are competitive compared to other lenders. Further rate discounts are available if you become a member with its partner credit union and sign up for autopay.
- Online video notary and support where available. Complete the entire process from the comfort of your own home.
- No in-person support. Figure is a 100% digital company. If you value face-to-face service or prefer a lender with physical locations, look elsewhere.
- New to the market. A digital disruptor can be a good thing, but there’s simply not enough out there from customers to know what to expect long term. Figure also isn’t yet available nationwide, though the company mentions it will be available in more states in the future.
- Requires handing over your bank details. Figure requires you to connect at least one checking account, but Redditors report having to give up your bank login details to do so.
- Origination fee can be high. While the number of costs are minimal overall, the fee on your first draw can make your loan more expensive than competitors, depending on where you live and other qualifications.
How do I qualify for a home equity line of credit with Figure?
Potential borrowers need to meet the following criteria to qualify for a HELOC with Figure:
- Have a minimum credit score of 620 (720 in Oklahoma)
- Be employed, self-employed or retired
- Have your name on the county record as the property owner
Eligible properties for a HELOC are limited to the following:
- Single-family residences
- Planned urban development properties with hazard insurance and flood insurance if located in FEMA flood zones A or V
2 steps to apply for a Figure home equity loan
The entire application process takes only a few minutes to complete. To get prequalified:
- Select Find my rate from Figure’s homepage.
- Complete the questionnaire pop-up, and then select I agree. You’ll receive a prequalification decision within minutes.
If you choose to continue the loan process, Figure will still need to approve and accept the loan offer. If accepted, a representative will reach out to schedule either 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.
Before you apply for a Figure HELOC, make sure you meet these eligibility requirements:
- Minimum credit score of 620 (720 in Oklahoma), but expect a minimum credit score of 680 for investment properties
- Maximum loan-to-value ratio of 50% if Figure is the first lien on the property
- Maximum combined loan-to-value ratio of 75% if your FICO score is 640-679, 80% if your FICO score is 680-759, 85% if your FICO score is 760-850 or 100% if your FICO score is 680 or higher for a 5-year term on a second or third lien on the property
- Debt-to-income ratio of less than 50% — or under 43%, in select cases
- At least two years of credit history
- No delinquencies on current mortgage in last six months
- No foreclosures in the past five years and no collections
- No bankruptcy in last seven years and no undischarged bankruptcies
- Employed with verifiable proof
Your property must also meet these criteria to be eligible:
- County record showing you as the owner — the loan will be under one owner’s name only, even if co-owned
- Primary residence in eligible state
- Proof of hazard insurance
- Proof of flood insurance for properties in Special Flood Hazard Area Zones A or V
- No more than two existing mortgages or liens on the property
- Single-family residence, townhouse, condo or planned urban development property
- Can be primary or secondary residence
- Ineligible properties: co-ops, commercially zoned real estate, multi-family (5+) properties, manufactured homes, timeshares, log homes, houseboats, mixed-use properties, duplex properties
Have these documents ready before you apply:
- Government-issued ID, such as a driver’s license, state ID or passport
- Proof of homeownership
- Proof of insurance
- Electronically signed mortgage document provided by an e-notary
- Proof of employment
What states are Figure HELOCs available in?
Figure works with borrowers in all states except:
- New York
- South Carolina
- West Virginia
I got the HELOC. Now what?
Make the most of your HELOC with Figure:
- Check to see if you are eligible to take advantage of any discount offers.
- Pay off your loan early with no penalties.
- Consult with a tax advisor to determine if your HELOC is tax-deductible.
- Get help through convenient live chat, email or phone.
Alternatives to Figure
While offering convenience through technology, Figure charges a relatively high origination fee, which will increase your loan’s cost. So we recommend comparing lenders to find the best rate and lowest fees for your HELOC.
The good news is there are a wide variety of HELOC lenders to choose from. While some lenders have pulled back on their equity lending, others are charging ahead — and offering a range of relationship discounts to lower your rate even further. See the latest HELOC offers from Bank of America, Connexus, PenFed, US Bank and your local credit union.
Whichever HELOC lender you choose, always compare offers and read the fine print related to fees, closing costs, interest rates and early payment penalties. If you’re ready to move forward, select See rates to get a personalized HELOC quote today.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
Matt Miczulski is a personal finance writer at Finder. After paying off $30,000 in debt in a little more than a year, he applied what he learned as a writer at FinanceBuzz, where he specialized in finance news, banking, debt and travel. He has been featured on MSN, Best Company, Money Done Right and Recruiter. Matt is a proud military veteran, completing one tour in Iraq and earning a BA in History along the way.
Other lenders should take a page out of Figure’s playbook when it comes to its application process. Being fully online, you can apply and get approved in five minutes and have your loan funded in 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 in which 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.