Figure HELOC review

Get approved in minutes, but you may pay origination fees which can run high.

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.

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Primary home: 620,
Secondary home: 680

Minimum credit score

Not available in: DE, HI, KY, MD, NY, SC, TX, UT, WV

State availability

Details

Loan products offeredHELOC
Minimum credit scorePrimary home: 620,
Secondary home: 680
State availabilityNot available in: DE, HI, KY, MD, NY, SC, TX, UT, WV
NMLS #1717824
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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.

Expert review

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.

Our take on Figure’s HELOC product

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.

Pros

  • Fast prequalification and funding. Get prequalified in minutes and funded in as few as five days after loan approval.
  • 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.
  • Fixed rates. Many HELOCs that have variable rates that increase or decrease over time. Figure’s fixed rates ensure your rate won’t rise due to fluctuations in the prime rate, at least on the initial draw amount.
  • Online video notary and support where available. Complete the entire process from the comfort of your own home.

Cons

  • Origination fees can run high. While maintenance costs are minimal, the fee on your first draw can make your loan more expensive than competitors.
  • Blockchain is immutable. Figure uses blockchain technology. One user reported having to redo an application, only to discover that the old records interfered with the new application and getting a favorable interest rate.
  • New to the market. Figure doesn’t have a long-term track record and isn’t yet available nationwide, though the company mentions it will be available in more states in the future.
  • 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.

What types of home equity products does Figure offer?

Figure offers two ways to tap into your home’s equity.

  • HELOC. A fixed-rate line of credit with repayment periods of 5, 10, 15 and 30 years. After paying down the initial draw amount, you can get an additional draw period on the amount you’ve paid down. Here’s how it works:
    • For 5-year terms, you get an additional 2 years’ draw on the amount you paid off.
    • For 10-year terms, you get an additional 3 years’ draw on the amount you paid off.
    • For 15-year terms, you get an additional 4 years’ draw on the amount you paid off.
    • For 30-year terms, you get an additional 5 years’ draw on the amount you paid off.
  • Cash-out mortgage refinance. With this option, you get a 15- or 30-year mortgage to replace your existing mortgage for more than what you owe on your home. The difference between the amount of the new mortgage and old one is the cash-out portion.

Figure’s requirements are about the same as other lenders

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:

  • Have a minimum credit score of 620, or 720 in Oklahoma.
  • Be employed, self-employed or retired.
  • Have your name on the county record as the property owner for at least 90 days.

Figure’s fees are potentially higher than other lenders

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.

Figure reviews are mixed but lean positive

BBB rating F
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.

      How to get Figure HELOC

      Here are the steps to apply for a Figure HELOC:

      1. Go to the Figure website, select Find my rate and choose Home Equity Loan.
      2. Follow the prompts to complete the application. You’ll need to provide your Social Security number.

      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.

      Eligibility requirements

      To apply for a Figure HELOC, you must meet these requirements:

      • Minimum credit score of 620 (720 in Oklahoma), and a minimum credit score of 680 for investment properties
      • Debt-to-income ratio of less than 50% — or under 43%, in select cases
      • At least two years of credit history and proof of employment

      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.

      Documents you’ll need

      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

      Other home loans from Figure

      Alternatively, explore these home loan options from Figure:

      • Home loans. While Figure is no longer accepting applications for home loans, you can apply for one with Homebridge Financial Services from the Figure.com site.
      • Crypto-backed mortgages. This soon-to-launch product will accept Bitcoin (BTC) or Ethereum (ETH) as collateral for home loans up to $20 million.

      I got the HELOC. Now what?

      Make the most of your HELOC with Figure:

      • Pay off your line early with no penalties.
      • After paying off all or part of the line, you can borrow funds equal to the amount you paid off for a set number of years, but at a new variable interest rate.
      • Consult with a tax advisor to determine if your HELOC is tax-deductible.

      Compare interest rates for home equity loans, HELOCs and cash-out refinancing

      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.

      Searching for the best rates...

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      2 Comments

        Default Gravatar
        Karen
        February 25, 2019

        Do you attach a lien to my house if I decide to borrow from you?

          Avatarfinder Customer Care
          Jhezelyn
          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

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