Figure: 2023 Home Equity Review

Methodology

To create our Bankrate Scores, we evaluated lenders based on availability, affordability and customer experience. Availability was assessed based on the minimum loan amount required, time to approval, days to close, minimum draw requirements, minimum credit score requirements and loan types offered. Affordability was assessed based on minimum APR, discounts and promotions offered and associated fees. Customer experience was assessed based on online application and account availability, customer support, auto payment availability and mobile app availability and ratings.

Benefits

• You can get approved for a HELOC with Figure in as few as five minutes and get your money in as little as five days.
• Figure doesn’t charge appraisal fees, annual fees, late fees or prepayment penalties. (However, it does charge an origination fee of up to 4.99 percent of your initial draw.)

Drawbacks

• When you receive your HELOC, you’ll be required to draw the entire loan amount, and you can make additional draws as you pay off the initial amount. (Most other HELOC lenders allow you to draw only what you need, when you need it, potentially reducing interest costs.)
• Figure’s HELOC is capped at $400,000, which is lower compared to some other lenders.

Types of fees charged

Figure charges an origination fee, which can cost up to 4.99 percent of your initial draw amount, depending on your location. You might also be responsible for recording fees. However, you don’t need to worry about appraisal fees, annual fees, late fees or a prepayment penalty.

If you’re looking for ways to lower your monthly payment, you can sign up for autopay for a 0.25 percent rate discount. You can also opt into a credit union membership for an additional 0.25 percent discount. Figure currently has partnerships with Quorum Federal Credit Union, Teachers Federal Credit Union and Valley Strong Credit Union.

Home equity loan products offered

If you qualify, you can get a fixed-rate HELOC from Figure between $15,000 and $400,000 with repayment terms of five, 10, 15 or 30 years. The lender uses an automated valuation model to appraise your home, so there’s no fee involved.

Once approved, you’ll receive the initial draw amount in as little as five days. As you repay the initial draw amount, you can make additional draws from $500 up to 100 percent of the initial draw amount plus the origination fee. Unlike most other HELOCs, Figure offers fixed rates, meaning each draw receives a fixed interest rate based on the prime rate at the time of the draw. Because of this, different draws have different rates, but the rate you lock in with each draw will not change over the repayment period.

You can make additional draws for two years to five years after you open the line of credit, depending on the length of your repayment term.

How to qualify for a HELOC with Figure

You need a credit score of at least 640 to be eligible for a HELOC from Figure (or at least 680 if you’re tying the line of credit to an investment property or second home). If you have a higher credit score, you’ll have access to a larger line.

For a first or second lien HELOC on a primary, owner-occupied home, the CLTV ratio (combined loan-to-value ratio) caps range depending on your FICO credit score:

• 640-659 credit score: Up to 75 percent of home equity
• 660-699 credit score: Up to 85 percent of home equity
• 700-850 credit score: Up to 90 percent of home equity

For third liens on a primary residence, the CLTV ratio cap is 70 percent for those with FICO scores between 640 and 850.
If you’re unsure if you qualify, Figure can prequalify you without impacting your credit score.

How to get started

Figure’s all-digital HELOC means you’ll fill out an online application and work with an e-notary to provide e-signatures. If you have questions during the process, you can contact the lender’s customer service team via email or phone at 888-819-6388 or live chat. The customer service team is available Monday through Sunday from 6 a.m. to 6 p.m. PT, except on major national holidays.