Founded in 2018 by SoFi’s Mike Cagney, fin-tech startup Figure is one of the largest providers of home equity lines of credit (HELOCs) in the U.S, with more than $14 billion lent to over 200,000 households.
We love Figure’s speed and efficiency: Customers can get approved in as little as five minutes and get funding in as few as five days. Figure also offers virtual closings in states where it’s allowed.
But some key facets differentiate it from a traditional HELOC, including its relatively short draw period and the fact that borrowers must withdraw their full line of credit at the time of origination.
Figure
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Annual Percentage Rate (APR)
Apply online for personalized rates
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Types of loans
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Terms
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Credit needed
Pros
- Funding as soon as 5 days after approval
- E-closing available
- No closing fees
- High LTV maximum
Cons
- Only offers HELOCs
- High minimum credit score requirement
- Not available in Hawaii or Delaware
- Short draw period, only three to five years
- Low maximum
What is a Figure HELOC?
Unlike a home equity loan, which is disbursed in a lump sum, a HELOC gives borrowers a revolving line of credit. You can make multiple withdrawals and only have to pay interest during their draw period, which is usually 10 years.
A Figure HELOC, however, shares features of both traditional HELOCs and home equity loans: It has a significantly shorter draw period and borrowers must withdraw the full line of credit upon origination. (As you repay the initial withdrawal, however, you can make more withdrawals.)
Figure HELOC pros and cons
Pros
- Low interest rates and no annual fee
- Online closing process when allowed
- Can close in as little as five days
- Offers HELOCs for second homes and piggyback HELOCs
Cons
- The longest draw period is five years
- Minimum draw is $15,000, higher than usual
- Origination fee may be as much as 4.99%
- Must take out the full draw at opening
Figure HELOC rates and terms
Figure offers home equity lines of credit in all states but Hawaii.
- Draw period: Two to five years
- Repayment terms: Repayment periods of 5, 10, 15, 20 or 30 years.
- Loan minimum: $15,000 in all states, except for Texas ($35,000) and Arkansas ($25,001)
- Loan maximum: $400,000
- Closing timeline: Five days
- Origination fee: Up to 4.99%
- Annual fee: None
Unlike most HELOC issuers, Figure requires borrowers to take out their full line of available credit upon origination. You can make additional withdrawals if you make payments during the draw period.
It also has a maximum draw period of 5 years, compared to the 10-year window most lenders offer.
Figure HELOC requirements
Figure typically requires borrowers to have:
Figure customer service
Unlike many lenders, who may offer a variety of mortgages and other banking services, Figure specializes almost exclusively on HELOCs.
For that reason, it has a streamlined application and approval process: Borrowers can reportedly be approved in five minutes and receive funds in as few as five days.
Customer service is available at 888-819-6388, Monday through Friday from 6:00 a.m. to 9:00 p.m. PT, and weekends from 6:00 a.m. to 5:00 p.m. PT.
Figure earned an A+ from the Better Business Bureau, the organization’s highest grade, based on transparency, truthful advertising and how it responds to consumer complaints.
How Figure compares to other HELOC lenders
Here’s how Figure compares to two major HELOC lenders.
Figure vs. TD Bank
While TD Bank only offers HELOCs in 15 states and Washington, D.C., Figure makes them available everywhere but Hawaii. It also offers virtual closings, a feature TD Bank lacks.
TD Bank Mortgage
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Annual Percentage Rate (APR)
Apply online for personalized rates
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Types of loans
Conventional, VA, FHA, jumbo, construction-to-permanent, physician loans, TD Right Step, TD Home Access, refinancing, home equity loans
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Terms
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Credit needed
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Minimum down payment
Pros
- Mortgages with 3% down and no PMI
- $10,000 lender credit
- Specialized mortgages for physicians
- Offers HELOC and home equity loans
Cons
- Higher-than-average rates
- Doesn’t offer USDA loans
- Not available in all states
But TD Bank has more than 1,000 branches and will approve HELOCs up to $6 million. An online-only operation, Figure caps HELOC draws at $400,000.
Figure also has a shorter draw period and requires homeowners to take out the full amount on their first withdrawal. TD Bank makes funds available for the typical 10-year window and allows users to take only what they need.
Figure vs. Flagstar Bank
Flagstar also has broader draw terms, with HELOCs ranging from $10,000 to $1 million.
Flagstar® Bank Loans
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Annual Percentage Rate (APR)
Fixed-rate and adjustable-rate available, apply online for rates.
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Types of loans
Conventional, FHA, VA, USDA, jumbo, renovation, Destination Home Mortgage, HomeReady, Home Possible, refinancing, ReFi Now, Refi Possible, HELOC, home equity loan
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Terms
15-year and 30-year fixed-rate loans; 5-year, 7-year, 10-year intro period for adjustable-rate loans
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Credit needed
620 for conventional, 580 for FHA, 600 for Destination Home Mortgage, 700 for jumbo loan
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Minimum down payment
3% for conventional loans, 3.5% for FHA loans, 0% for VA, USDA and Destination Home Mortgage
Pros
- Destination Home Mortgage allows qualified buyers to put 0% down
- Grants of up to $15,000 for first-time homebuyers
- Possible to close in as few as 15 days
Cons
- Rates tend to be higher than industry average
- Below-average customer satisfaction rating from J.D. Power
- Home equity loans only available in nine states
A full-service bank, Flagstar offers a 0.25% discount if you set up automatic payments from a Flagstar checking or savings account.
Where Figure comes out ahead is in the approvals process: Flagstar requires a FICO score of 700 for a HELOC, while you only need a 640 to be approved by Figure.
How do I apply for a Figure HELOC?
Figure doesn’t have brick-and-mortar locations, so borrowers must visit the website and complete an online application to get preapproved.
The process will not impact your credit, but you’ll need proof of identification, bank statements, tax returns and W2s from the past two years, as well as the deed to your home and proof of homeowners insurance.
Borrowers can get approved within five minutes and have their line of credit funded within five days, according to Figure, with a completely online closing process available where allowed.
Is a Figure HELOC right for me?
A HELOC from Figure is a good option if you need money quickly and appreciate the convenience of an online application and approval process.
It’s also worth considering if you have a less-than-stellar credit history, as its credit requirements are more flexible than many competitors.
But, if you’re looking for a longer draw period or larger loan limit, you may need to look elsewhere.
Figure HELOC FAQs
Is Figure HELOC legit?
Founded by husband-and-wife team Mike Cagney and June Ou in 2018, Figure is a legitimate fin-tech lender that has approved more than $14 billion in home equity for over 200,000 families.
In addition, it’s the No. 1 non-bank lender for HELOCs and earned an A+ rating from the Better Business Bureau.
How long does it take to get approved for a Figure home equity line of credit?
According to Figure, borrowers can be approved within five minutes and get funding in as little as five days.
Does Figure offer home equity loans?
No, Figure only offers home equity lines of credit, not home equity loans or other mortgage products.
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Our methodology
CNBC Select reviews mortgage products using a variety of criteria, including the types of loans offered, average rates, terms, availability, fees, down payment options, online experience and customer satisfaction.
In addition, we incorporate findings from independent sources, including lender scores from the J.D. Power U.S. Mortgage Origination Satisfaction Study and ratings from the Better Business Bureau.
For home equity lines of credit, we consider credit score requirements and maximum loan-to-value ratio accepted, as well as draw amount options, draw and repayment periods and if the lender requires an annual fee.
Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
