Looking for a home equity line of credit (HELOC)? Want to be able to easily get a quote online and see if it's worth it? That's where Figure comes in.
Figure is an online lender that focuses on HELOCs. The approval process is online and fully automated, making it easy to get a quote on your own terms - no dealing with phone calls to brokers.
The advertise themselves as the World's Fastest HELOC - with a loan decision in 5 minutes, and money in your account in 5 days if you're approved.
Check out our Figure review and see if it's worth it.
- Offers home equity line
- Completely online application
- HELOC fees are limited to origination and interest on draws
Starting at 4.99%
Who Is Figure?
Figure is a fintech company that offers home equity line products. It also goes by the names Figure Lending LLC and Figure Technologies, Inc. They are located in San Francisco, CA and were founded in 2018 by Mike Cagney, former SoFi CEO.
Figure uses blockchain technology, AI, and analytics to evaluate a person’s credit, debt-to-income ratio, and home value. From customer reviews, it seems once the software approves or declines you, there isn’t anything customer service can do to change it.
What Do They Offer?
Figure offers just one product right now (more may be coming): home equity lines of credit (HELOCs). Because Figure’s loan approval process is automated, you’ll get a same-day decision. Monthly payments are fixed and there are no ongoing fees.
Once you make a draw, monthly payments will begin on the outstanding balance. As you pay down the draw, you can make another draw up to 20% of the total loan amount. Additional draws can be made two to five years after the origination date and based on the loan term.
Loans range from $15,000 to $150,000. Loan terms include 5, 10, 15, and 30 years.
Figure estimates home values based on their assessment of independent data sources and automated valuation models (AVMs). This means Figure may generate a home value that is different from the one you or your real estate agent has estimated.
Some qualification criteria include:
- A credit score of at least 600
- Maximum combined loan-to-value ratio is 95%
You can check your interest rate on Figure’s website without having to go through the application process. Checking your rates doesn’t impact your credit score since it requires only a soft inquiry. Once you submit an application, a hard inquiry will occur and may affect your credit score.
If you opt to have your monthly payments put on autopay, you’ll receive a discount.
If you received an offer in the mail from Figure, it doesn’t guarantee that you’ll be approved. Once an application is submitted, additional information goes with it, allowing Figure to more accurately determine your creditworthiness, which may result in being declined.
Figure’s Home Equity Line product is available in 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, OK, OR, PA, RI, SD, TN, VA, WA, WI, and WY.
Are There Any Fees?
Yes — for the home equity line, Figure charges two fees:
- Interest rate on drawn amount that ranges from 4.99% to 13.74% APR. The interest rate is fixed for each draw.
- Origination fee based on initial draw that ranges from 0% to 4.99%.
You won’t find the following fees with Figure:
- Maintenance or appraisal fees
- Late fees
- Prepayment penalties
How Do I Apply?
One thing to note: some reviewers have mentioned that Figure only works with certain banks. If you want to use your bank, check that it is on their list of banks before applying. Otherwise, you may go through the entire loan application process, get approval, and then find out you can’t get financing because your bank isn’t one Figure uses.
To notarize documents, Figure uses an eNotary. Part of the application process involves meeting with a notary online through a video/audio-enabled session. During this session, you’ll electronically sign documents. Then the notary will digitally notarize them. There is no in-person interaction with Figure’s loan application process.
Is My Information Safe?
Figure may use your information to market its own products to you. Some reviewers have mentioned Figure’s marketing can be aggressive.
Is It Worth It?
Figure offers a straightforward loan application process that can be completed entirely online. For those that want speed and the convenience of not having to go to a bank, Figure is a great option.
Before applying, check that your bank is one Figure works with. Also, don’t assume that Figure will use your home value numbers. They calculate their own proprietary numbers for home values.