Many homeowners leverage the equity in their homes for cash. But borrowing against your home equity is a long, laborious process. Home equity lines of credit (HELOCs) take 2-4 weeks to finalize. Mortgage refinancing takes even longer at 30-45 days.
Figure wants to fix this. In fact, Figure can initiate funding for HELOCs in as little as five days¹ and mortgage refinancing loans can be approved in a few weeks rather than months.
|Mortgage types||Rate refinance, cash-out
refinance, jumbo refinance, home equity loan
|Mortgage amount||$15K $250K Lines of credit (HELOC)
75%-80% of your home value.
Cash out Jumbo – Max CLTV 75% & max loan amount $1M
No Cash-out Jumbo – Max CLTV 80% & max loan amount $1M
Cash-out and no cash-out refinance for non-jumbo loan: Max CLTV 80% & max loan amount – FNMA loan limits up to $2.0M
|Repayment terms||15 & 30-year fixed (rate & cash-out refinance)
Jumbo loans only available at 30-year term
|APR||APR dependent on loan type|
|Minimum credit score||620; 700 for Jumbo loans|
|Lender type||Direct Lender|
Figure Mortgage Loans: Pros
- Fast approval times (mortgage); Fast funding times (HELOC)
- Speed digital application with eNotary (where available)
- Few and low fees (in general) on HELOCs; Figure mortgage refinance loans does not charge any lender fees other than discount points, if applicable
- Several customer service channels
Figure Mortgage Loans: Cons
- Origination fee (HELOC)
- HELOC maximum borrowing amounts
- Not available in all 50 states
Figure offers an entirely digital application process on its website, and it’s pretty fast. To start, you’ll click “find my rate” on the page of whichever product you’d like to apply for.
Application Process (HELOC only)
The application process will then ask for information, such as:
- Date of birth
- Property address
- Social Security number
- Citizenship status
- Annual income estimate
- Reason for borrowing
- Proof of insurance if refinancing a mortgage (homeowners insurance, any hazard insurance necessary based on your location)
After providing this information, Figure runs a soft credit check that doesn’t damage your credit score. It then uses the results to present you with offers you may qualify for.
Next, pick an offer to apply to. Then Figure runs a hard credit check — which may affect your credit score. At this point, they’ll also ask you to link your checking account to verify your income and prepare for loan disbursal. It’ll also ask you for a government-issued ID (driver’s license, passport, state ID card) for identity verification purposes.
When all that’s done, you work with a remote notary over a video call to sign documents and finalize the loan. Figure sends you a notary if you live in a region where remote notarization isn’t allowed.
Taking a Home Equity Loan with Figure
If you already have a home mortgage and you are looking to take out a home equity loan, then Figure has you covered in this department. The application process is very similar to if you were trying to get an initial home mortgage. This will only require a few minutes of your time and everything is completed online. It currently allows you to borrow up to $250,000 with a one-time origination fee.
Figure promises that you will usually receive your funding in five days after your application has been given the green light. The interest rates vary but will go as low as 3% APR. There is also an online video notary and support available if you have any questions or run into any issues.
Terms & Requirements
Figure requires a decent income and credit score to qualify for any of its products. Part of the reason is it’s able to offer great rates and few fees — and of course, they fund things quite fast.
Figure is fairly stringent about its lending requirements, from credit score and income to other factors like bankruptcies and number of liens on the property.
- Property can be a single-family residence, townhome, condominium, or planned urban development
- Primary residences only for mortgage refinancing
- HELOC credit score: 620 for primary and secondary homes (720 for OK); 680 for investment properties
- Mortgage refinancing credit score: 620 for conforming loans; 700 for jumbo loans
- Debt-to-Income ratio: Maximum 50%; 43% for Jumbo loans.
- Can’t have more than two existing mortgages/liens on the property
- Minimum 2 years of credit history on file
- Must be employed
- No delinquencies on current mortgage in the last six months
- No foreclosure in the past five years
- No accounts in collections
- No bankruptcy in the last four years/seven for Jumbo loans.
- No undischarged bankruptcies
- For mortgage refinancing: must have any relevant hazard insurance (such as flood insurance if you live on a flood plain)
Figure is known for providing competitive rates and few fees — aside from an origination fee (for HELOC only). You can borrow different amounts depending on your credit score and what term length you select.
Figure currently offers 15 & 30-year fixed refinancing loans at the moment.
Good/Excellent Credit; 15 & 30 year term.
Jumbo refi available with option to pull up to $500K cash out only on 30-year term.
Figure has plenty of customer support options. You can reach out to them via email for application and product questions, current borrowers and general support. You can also call them Monday-Saturday, 6 am-6 pm (except for on major US holidays), or open a live chat with a customer support agent on Figure’s website.
Figure’s rates are pretty good, and there aren’t many fees to be concerned with as well. If you have a strong credit score and want to leverage your home equity fast, Figure might be the way to go.
Figure has a very streamlined type of home equity loan offer. You are able to borrow up to $250,000 at rates of as low as 3% APR. You can often get these funds within five days, allowing you to put them to work straight away. With a great level of customer support and a good reputation, Figure is a great option for anyone looking to take out a home equity loan.
Figure Lending LLC dba Figure
15720 Brixham Hill Avenue, Suite 300
Charlotte, NC 28277
Figure disclaimer: Figure Personal Loan is available in all 50 states including Washington DC.
¹To check the rates and terms you qualify for, we will conduct a soft credit pull that will not affect your credit score. However, if you continue and submit an application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit. Figure’s APRs start at 5.99% for the most qualified applicants and are higher for other applicants. Loan example, for a borrower with a CLTV of 45% and a credit score of 800, a five-year Figure Home Equity Line with an initial draw amount of $50,000 would have a fixed annual percentage rate (APR) of 4.99% and a 3.00% origination fee. Your total loan amount payment would be $51,500. Origination fees range from 0-4.99% of your initial draw depending on your credit score and the state in which your property is located. The advertised rate is available only to borrowers using primary residences as collateral. Your actual rate will depend on many factors such as your credit, combined loan to value ratio, loan term and occupancy status.