Figure HELOC Review (2024) (2024)

Our Thoughts on Figure HELOCs

MarketWatch Guides Rating: 4.3 out of 5 stars

With a Figure Lending HELOC, you can receive funds in as little as five days, significantly faster than the average timeline of multiple weeks. The application and approval process only takes a few minutes, and there’s no requirement for an in-person appraisal.

Even though Figure doesn’t charge an annual fee, you will likely need to pay a hefty origination fee of up to 4.99%. You also need to draw the entire loan amount at closing, making this HELOC a less flexible option than other lenders. But if you need quick access to funds, it might be worth it.

Pros and Cons of Figure HELOCs

Figure HELOCs provide unique perks that set the company apart from other lenders. Still, there are drawbacks to consider as well. Here’s what to expect from a HELOC with Figure Lending.

Who Are Figure HELOCs Best For?

Figure HELOCs are best for borrowers who want quick access to funds and a straightforward application process. Borrowers in most states won’t have to deal with an in-person appraisal or a multi-day approval process.

A HELOC from Figure may also be a solid option if you need help deciding between a HELOC and a home equity loan. Figure only offers fixed interest rates, and you must draw the total loan amount at closing, which are typical features of home equity loans. But unlike home equity loans, Figure HELOCs allow you to redraw more money once you begin making payments.

If you’re looking for the most flexible HELOC, Figure might not be the right fit. Even though the requirement to draw the total loan amount at closing might be a perk for some borrowers, it can be inconvenient for others. Plus, Figure only offers two- to five-year draw periods, which is shorter than many other lenders.

How To Get a Figure HELOC

Figure’s loan application process is quick and straightforward. Here’s what to expect.

Application Process

The application process is entirely digital, and you can apply on Figure.com. You can typically submit the forms in five minutes or less. As soon as you apply, you will receive a prequalification offer, which is an overview of your loan’s expected terms and conditions. After that, Figure verifies your income and employment information before finalizing the offer.

You must provide the following information when you apply for a HELOC with Figure:

• Property address
• Income information
• Full name
• Date of birth
• Contact information

Approval and Funding

After submitting your application and prequalifying, Figure confirms your information to finalize your loan. You don’t need to gather any documentation or worry about scanning copies of paperwork. Instead, it’s an entirely digital process.

You can verify your income by linking your checking account, granting access to your tax returns or logging on to your payroll provider. You must complete the verification process within 14 days.

Additionally, you only need an in-person appraisal if your state requires it. Figure uses an automated valuation model (AVM) to determine the value of properties virtually.

Once the verification process and appraisal are complete, you can receive funds within five business days.

Figure HELOC Reviews

Customer reviews for Figure are mixed and primarily focus on the application process. Some homeowners rave about how easy it is to apply and how quickly funds arrive. But other customers struggle with parts of the automated process and cite failing to find adequate customer support.

“This financial institute [makes] things so easy from the beginning to the end of the process. The only thing I had to do was have my paperwork in order and good credit. I believe that Figure will dominate this industry, [provided] they don’t run out of funds and all customers pay as agreed. The process was easy and funding my account was fast.”

— Patrick J., U.S., Sept. 12, 2023, Trustpilot

The same month, another borrower shared a similar experience with Figure.

“Wow, this was the easiest transaction. Everything was so quick. Link your accounts easily with Plaid. Everything was done [through] my phone. Rates are competitive. Fees are low. By far the fastest, [most] painless transaction ever.”

— Vanessa S., U.S., Sept, 1, 2023, Trustpilot

However, some reviews complain about high-pressure sales tactics.

“Dupped me into a high-interest equity loan with no chance of negotiating anything. High pressure; didn’t even have a chance to think about it.”

— Deborah F., U.S., Sept, 1, 2023, Trustpilot

Figure did not reply to our request for comment.

Eligibility Requirements for Figure HELOCs

You must meet the eligibility requirements if you’re interested in a HELOC from Figure. The company requires the following credit scores and loan-to-value (LTV) ratios.

Credit Score and Financial History

You must have a credit score of at least 620 to qualify for a HELOC with Figure, and you might need a higher score depending on the maximum loan amount. Higher loan amounts require higher credit scores, and some amounts require excellent credit.

Figure requires the following FICO scores for each loan amount.

Home Equity and LTV Ratio

You can borrow up to 95% of your CLTV ratio with a Figure HELOC. But you must have a strong credit history to do so.

The equity you have in your home determines how much you can borrow. You can calculate your equity by determining your LTV ratio. For example, imagine your home value is $300,000, and you still owe $150,000. Your LTV ratio is 50%. Most lenders require an LTV ratio of at least 15%.

Once you know your LTV ratio, you can determine your CLTV ratio or the maximum amount you can borrow. If Figure offers you a CLTV ratio of 95% on your primary residence from the example above, you can borrow up to $135,000. ($300,000 x 95% = $285,000 – $150,000 = $135,000)

Figure HELOC Usage Rules

Figure doesn’t have any restrictions on how you use the funds from your HELOC. You can use the funds for debt consolidation, home improvements and major purchases, such as a wedding or college tuition.

However, you can also use the money for living expenses, investments or other costs related to education. Once you finalize the online application and receive access to the funds, you can spend the money however you want.

Figure HELOC Fees and Penalties

As you search for the best HELOC lender, it’s essential to consider the cost of the loan, especially penalties and the annual percentage rate (APR). Here’s what you can expect from Figure.

Early Repayment Penalties

Figure does not charge early prepayment penalties. You can repay your HELOC balance before it’s due, and there are no fees.

Some lenders charge fees if you pay off your HELOC early, which can add up. The Federal Trade Commission explains that if these fees are high enough, they can prevent borrowers from paying loans off early, causing borrowers to pay thousands of dollars more toward interest fees.

With Figure, you won’t have to deal with that. You can pay off your HELOC with no penalties at any point throughout the loan term.

Interest Rates and APRs

Figure home equity lines start at a fixed APR of 6.95%, which is competitive since the current prime rate is 8.50%, according to the Federal Reserve. But depending on your credit score and LTV ratio, your rate might be higher. Unlike most lenders, Figure has fixed-rate HELOCs, which offer consistent monthly payments that won’t increase throughout the term. But it also means that if market rates decrease, you won’t benefit from the lower rates.

Regardless of your rate, Figure offers an autopay discount of 0.25%. It’s a nice perk that can help lower the cost of your loan.

As a borrower, it’s usually in your best interest to secure the lowest rate possible. However, it’s also important to consider fees and term length. All of those factors impact the total cost of a HELOC.

>> Related: Learn more about the

How Figure Compares to Other Lenders

The Consumer Financial Protection Bureau recommends comparing loan offers from at least three lenders to help secure the best rate and terms for a HELOC. Here’s how Figure compares to other popular lenders.

Figure vs. PNC Bank

PNC Bank offers HELOCs between $10,000 and $1,000,000, which is more than double what you can access with Figure. The repayment terms range from five to 30 years. While Figure stands out with a fixed interest rate, PNC Bank takes it further by allowing you to choose either a fixed rate or a variable rate. If you set up automated payments, PNC Bank will give you a rate discount of 0.25%, which is the same discount you can earn at Figure. PNC Bank’s annual $50 fee can detract from potential savings, though.

However, the most significant difference between the two lenders is that PNC Bank has a lower draw amount. Figure requires you to draw the total loan balance. If you want maximum flexibility for when and how much you draw, PNC Bank might be a better fit.

>> Related: Learn more in our PNC HELOC review

Figure vs. Navy Federal

Navy Federal Credit Union offers loans between $10,000 and $500,000. The maximum CLTV ratio is 95%, which matches what Figure offers. But compared to Figure’s four repayment terms of five, 10, 15 or 30 years, Navy Federal’s singular option of 20 years provides significantly less flexibility.

Navy Federal does not charge any fees. You won’t have to pay an origination fee, which could save you up to 4.99% compared to Figure. But you must have a close military connection to join Navy Federal, which limits accessibility for many borrowers. But if you can access membership, it’s an excellent option.

Figure vs. Guaranteed Rate

Guaranteed Rate and Figure are remarkably similar online lenders that digitize the HELOC application process. You can receive funds as soon as five days after approval with both lenders. Guaranteed Rate offers fixed-rate HELOCs between $25,000 and $400,000, and Figure’s fixed-rate HELOCs are nearly the same, ranging from $20,000 to $400,000.

However, there are a few differences between the lenders. Figure charges a potentially higher origination fee that ranges from 0% to 4.99%. Guaranteed Rate charges an origination fee of 1.99% on all HELOCs. But the most significant difference is that Guaranteed Rate has a higher APR at 9.55%, while Figure offers rates as low as 6.95%. Figure might make more sense if you need access to more money and can qualify.

The Bottom Line

Figure is a solid HELOC lender that digitizes the funding process, making it easier for busy borrowers. You can expect minimal fees, competitive rates and fast funding. However, you must draw the total loan amount, which can be a significant drawback.

Whether Figure is your best option depends on what you’re looking for in a HELOC. Consider fees, rates, draw periods, repayment terms and customer service. HELOCs are a long-term commitment, so working with a lender that can meet your needs — in the present as well as down the road — is essential.

If you’re not interested in a HELOC, check our our lists of the best home equity loan lenders and home equity loan rates.

How We Rate Figure HELOCs

Our team put together a comprehensive 100-point rating system to evaluate lenders that offer home equity lines of credit, with criteria based on factors that are most important to potential borrowers.

We then gathered dozens of data points from across the HELOC industry, reviewing disclosures, licensing documents, sample loan agreements, marketing materials and websites from more than 20 of the most prominent HELOC companies in the U.S.

Our rating system takes into account four broad areas. Here’s a short description of each category.

• Loan features (35%): This category measures how friendly each HELOC company’s loan terms are to potential borrowers. The most points go to lenders with a wide range of loan amounts, solid fixed-rate options, fast closing speeds and small minimum draws.
• Customer experience (30%): We review each company’s application, prequalification and customer service policies and procedures to create this category score. The best companies will have simple online applications and multiple ways for customers to get their problems solved.
• Affordability (20%): We gauge how expensive each company’s loans are to pay back, taking into account fees and closing costs. The highest-scoring lenders will have low or no annual fees, origination fees and other closing costs.
• Company reputation (15%): Our team analyzes each company’s Better Business Bureau file, customer reviews and any outstanding regulatory actions. The most points will go to companies with an A+ rating with the BBB, a track record of addressing customer complaints and no active regulatory orders.

This rating system is intended to give readers a comprehensive overview of each HELOC lender. However, our top-rated companies may not be the best fit for everyone. To learn more, you can read our full HELOC rating methodology.