Figure Home Equity Line Review

By: Heather Hanks Nov. 24, 2019

Homeowners are racking up debt at an alarming rate. They are overpaying on personal loans and lines of credit with high interest rates when cheaper options are available. Using home equity to upgrade your home is a great way to save thousands on interest. If you’re looking to make upgrades to your home, then a secure Figure home equity line of credit can help you.

You can borrow anywhere from $15,000 to $150,000. You’ll need to have a credit score of 600 and the maximum combined loan-to-value ratio is 95%. The loan is available online, which means you don’t have to step foot in a bank. There are no hidden fees and you can get approved the same day. Here’s everything you need to know about a Figure home equity line of credit. Also, check out how much you can save based on the average debt in your state.

Who is Figure?

Figure is a San Francisco-based financial company that offers four primary services. These include student loan refinancing, mortgage refinancing, money accounts (coming soon), and a home equity line of credit. Their home equity line of credit (also known as a HELOC) is designed to give homeowners a simpler way to make the most of their money. They specialize in using high-end technology that allows you to get your money quicker. They also offer transparent terms and conditions so you know exactly what you’ll be paying upfront.

Most home equity loans take months before they are approved. This can set back emergency projects needed on your home. Figure can approve you in minutes so you can get started on your home improvements. You should see your money in your account within five days. You can also use a Figure home equity loan to consolidate your debt into one monthly payment. Figure offers lower than average interest rates to help you save money. You can borrow as much as $150,000 at interest rates that start at 4.99%. Keep in mind you’ll need to have excellent credit to cash in on this option.

Here is a breakdown of the key features of a Figure HELOC:

Loan amounts range from $15,000 to $150,000 per property, depending on your credit

Must have a credit score of 600 and a combined loan-to-value ratio of 95%

Same-day approval and funds available within five days

Fixed APRs range from 4.99% to 13.74%

Tax deductible interest if used for home improvements

Loan terms of 5, 10, 15 and 30 years

What Does A Figure HELOC Offer?

A Figure HELOC is a secured loan that uses your home as collateral. It offers a financial solution for upgrading your home, making a major purchase, and consolidating your loans. It’s the fastest and only 100% online home equity product. Most home equity loans take months to fund. This can delay your home project. You can get approved for a Figure HELOC within five minutes. Loan amounts range from $25,000 to $150,000. Expect to see your funds in your account within five days.

Figure also offers industry-leading fixed APRs that range from 4.99% to 13.74%. You won’t have to worry about your interest rate going up as the prime rate changes. There are also no hidden fees and your loan is tax deductible. The only fee Figure will ever charge you is a one-time origination fee. The amount ranges from 0 to 4.99%, depending on the state you live in. The company also encourages you (and doesn’t charge you) to pay your loan off early.

Here is how Figure compares to other lines of credit and loans:

Figure

4.99% to 13.74% APRs, same-day approval, funding in five days, tax deductible, one-time origination fee, and fixed monthly payments

Traditional HELOCs

Floating APRs that range from 5% to 10%, same-day funding not approved, funding not available within five days, tax deductible, some ongoing fees, and no mixed monthly payments

Figure HELOC

Most credit cards

Floating APRs that range from 15% to 20%, same-day approval, funding in five days, not tax deductible, no ongoing fees, and no fixed monthly payments

Most personal loans

12% to 14% APRs, same-day approval not guaranteed, funding in five days not guaranteed, not tax deductible, no ongoing fees, and no fixed monthly payments

How Does Figure Work?

A Figure HELOC is similar to a mortgage loan. They will want to see how much equity you have in your home and what it appraises for. They will also want to know your income and what your credit score is. Figure uses this information to determine your loan terms, such as your borrowing limit and APRs. Your line of credit can be used on single family homes and townhomes.

You can use your Figure HELOC on a residence, a second home, a vacation house, or an investment property. You cannot use it on co-ops, commercially zoned real estate, manufactured homes, multi-family dwelling units, timeshares, log homes, earth or dome homes, house boats, and more. Figure lends to people whose sole properties are held by themselves or with someone else. To qualify, your name must appear on the country records as the property owner. If you use your Figure HELOC on home improvements, then you should be able to deduct the interest.

Figure encourages you to pre-qualify on their website for free. Doing so will not impact your credit score. This is a good way to determine what your rates will be once you apply. The company ensures that your information is always safe and secure. You can apply for multiple loans at Figure. However, your maximum amount for home repairs will be $150,000 per property (depending on your credit score). The company offers discounts if you enroll in autopay. This is a good way to save money and ensure that all payments are made on time. This can help boost your credit.

Here are some ways you can use a Figure HELOC:

The most common reason for using a HELOC is to make improvements and upgrades to your home. This may include adding an addition on to your house, building a deck, or upgrading your kitchen or bathroom.
Because of its low APRs, you may want to use a Figure HELOC to consolidate your loans and pay off your debt. It’s hard to keep track of multiple loans. Consolidating them into one monthly payment is easier to manage. You can use a Figure HELOC to pay them off entirely and then may (hopefully) cheaper payments on your loan with a lower APR.
The Figure HELOC allows you to borrow up to $150,000 with APR starting at 4.99%, depending on your credit. This makes it an ideal loan to use for a major purchase. Use this money to buy a home or car, pay for a wedding or trip, or even college tuition.

Who Can Apply for a Figure HELOC?

The ideal Figure HELOC customer is a homeowner who has at least $25,000 of equity in their home. They must also have a credit score of at least 600 and less than 40% debt to income ratio. Figure services the following states: AL, AR, AZ, CA, CO, CT, DC, FL, GA, ID, IL, IN, KS, LA, MA, ME, MI,MN,MO, MS, MT, NC, ND, NE, NH, NJ, NM, NV, OH, PA, RI, SD, TN, WA, WI, WY.

You’ll also want to make sure you have hazard insurance on all of your properties. Figure also requires you to have flood insurance if your property is located in flood zone A or V. They may ask to see proof of these documents after you close on your loan.

Figure HELOC: Pros and Cons

Figure stands out from the competition in several ways. First, it offers industry-leading APRs so you can save money overtime. Research shows that homeowners rack up an alarming amount of debt due to high APRs on personal loans and credit cards. Personal loans are often easy to get. However, they often require you to pay more money overtime. Using a Figure HELOC can help you use your home equity as collateral so that you get better loan terms. If you make payments on time and keep your account in good standing, then you can save a lot of money.

Figure also approves you within one day and has your money ready for you to use in five days. Most HELOCs take months before you see money in your account. This can delay funding for your home improvements or other major expense. Figure takes the frustration out of this waiting process by getting your money to you quickly. They also offer a discount on your APR if you enroll in autopay. Plus, there are no fees besides a one-time origination fee and you can apply with less than perfect credit. There are endless ways to save with a Figure HELOC. The only possible downside is that your home is on the line if you cannot repay what you borrow.

Figure HELOC Pros

  • Borrowing amounts range from $15,000 to $150,000, depending on your credit
  • APRs are fixed, which means that they will not go up
  • Low APRS that range from 4.99% to 13.74%
  • Loan terms range from 5, 10, 15 and 30 years
  • You can pre-qualify on the website for free without damaging your credit
  • No fees besides a one-time origination fee
  • You can apply with a credit score of 600 or better
  • Can be used on a primary home, a secondary or vacation home, or an investment home
  • You can use your Figure HELOC on debt consolidation, home improvements, or to fund a major expense
  • Lower APRs and faster funding than personal loans and credit cards
  • Interest is tax deductible if used on home improvements
  • You can get your money within five days
  • Get approved within five minutes

Figure HELOC Cons

  • Figure does not provide service in every state. You’ll want to check and see if your state is eligible before you apply. We also recommend that you pre-qualify for free to determine what your rates are so that there are no surprises.
  • You may lose your home if you cannot make payments. The Figure HELOC cannot be used on any property that isn’t a single family residence or a townhome. They do not accept commercially zoned real estate, multi-family real estate, manufactured homes, log homes, timeshares, boat houses, and manufactured homes.

How To Apply Figure HELOC

You may have to provide more documents with a HELOC than you would with a regular line of credit. This is because Figure will want to see what your home is worth. They will also want to know how much you make and other financial details. It’s a good idea to have all of this information ready when you apply. Your approval may be delayed if you don’t have proper documentation.

Before you qualify, it’s a good idea to pre-qualify on the Figure website. This will help you see your rates and terms beforehand. Note that pre-qualifying does not affect your credit score. However, an inquiry will show up on your credit report once you apply. Your loan will be serviced by Figure or one of their sub-servicers. The application process involves the following processes:

  • Basic information (name, address, annual gross income, etc.)
  • Select and provide more information (this may include retirement, IRA, roth, 401K, savings, brokerage, money market and CD accounts)
  • Verify identity
  • Link your income sources (bank accounts)
  • Sign your documents
  • Talk to eNotary

The last step involves being connected to an eNotary via an audio video session. He or she will ask you to confirm your identity by showing the ID you provided when you filled out the application. They will also ask you a set of questions based on your answers to the authentication questions. Once they authorize you, you can then review your document and sign it electronically during the session.

Follow these steps to apply:

  • Pre-qualify by answering a few quick questions to find your rate on the website.
  • Choose your loan amount and complete an application. This should take no more than five minutes.
  • Get your money in five business days once you’ve been approved.

Disclaimer

CreditNervana promises to keep our information as accurate and up-to-date as possible. However, you should always consult a financial advisor for specific questions about personal or business finances and investment opportunities, especially if you are looking in your area. Working with a trained professional who is familiar with your case is a safe and guaranteed way to make the best investment decision possible. Please review our terms and conditions before making any decision based on the information we provide. Financial institutions are constantly changing. Because of this, it’s a good idea to cross check the information you read here with any company you are considering working with.

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