Figure Home Equity Line of Credit Review: Rates, Features, and How It Compares
Written by
Rudri Patel
Edited by
GOBankingRates Staff
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Figure’s Home Equity Line of Credit (HELOC) is a good fit for those who want quick approval and funding, a fully digital application experience and little to no closing costs. You’ll need a credit score of at least 640 and be comfortable taking funds upfront instead of gradually.
In this guide, we’ll cover what Figure offers, how its rates and fees stack up, who qualifies and how it compares to other lenders.
Quick Summary: Is Figure HELOC the Right Fit for You?
If you’re looking for a quick, fully online application and fast approval, a Figure HELOC might be a good fit for you.
Ideal for:
- People seeking fast access to equity (funds can be available in about five days)
- Homeowners with a credit score of 640 or higher
- Borrowers who prefer a completely digital experience
Not Ideal for:
- People with credit scores lower than 640
- Borrowers seeking to receive funds gradually
- People who prefer in-person financial services
Pros and Cons of Figure HELOCs
Figure offers low fees and fixed interest rates, but it’s not available nationwide. Here are other pros and cons to consider:
| Pros | Cons |
|---|---|
| Fast funding (can receive funds in 5 days) | Not offered in all states |
| Fully online application | No in-person support |
| Fixed interest rate | Not a traditional HELOC (more like an installment loan with set terms) |
| High borrowing limits (up to $400,000) | Requires a 640 credit score |
| Minimal fees (origination fee of 4.99% of funded amount) | Origination fee is deducted from funding amount |
What Types of Home Equity Products Does Figure Offer?
Figure offers only one type of a home equity product — a fixed rate HELOC. Here are the features of the HELOC:
- Fixed interest rate. Each draw of line of credit is based on a fixed interest rate.
- Full amount. You receive the full amount of loan (minus the origination fee).
- Loan amount. You can borrow from $15,000 to $400,000.
- No in-person appraisal required. Figure uses automation models to appraise your home.
- Quick approval process. You’ll learn if you qualify for the HELOC within minutes, and funds are available in about five days.
What Rates and Discounts Can You Get?
Figure’s HELOC offers a range of rates and discounts tailored to a borrower’s profiles. This is what you can expect.
Typical APR Range
Your interest rate depends on several factors like credit score, loan-to-value ratio, state of residence and loan amount. The rate advertised to start is 7.05% to 15.30%. Each withdrawal from your HELOC is fixed at a certain rate.
There are no introductory offers publicized on the Figure website.
Rate Discounts
You may be eligible to receive a rate discount of 0.25% if you enroll in auto pay. You could receive an additional 0.25% discount if you are a credit union member. Figure doesn’t list on the website which credit unions qualify.
Are There Fees or Closing Costs?
Figure’s HELOC is affordable due to minimal costs associated with this loan. Here’s a breakdown:
- Application costs: None
- Annual fee: None
- Origination fee: 0% to 4.99% of the initial draw amount, included in your monthly payments
- Closing costs: None
- Appraisal or title costs: None
- Early closure fee: None
- Other potential costs: Notary, recording fees, recording taxes
Who Qualifies for a Figure HELOC?
You’ll need a fair credit score and offer proof of stable income to be eligible for a HELOC with Figure. Here are other requirements:
Credit score, home equity and debt-to-income ratios
- Credit score: 640 or better
- Home equity: At least 20%
- Debt-to-income ratio: 50%
Combined loan-to-value ratio
- Combined loan-to-value ratio: 85%
Other requirements
- Income verification: Figure will require proof of stable income.
- Loan amounts: It can be between $15,000 to $400,000.
- Residency requirement. You must reside in a state where Figure offers a HELOC.
What’s the Application Process Like?
The application process for a Figure HELOC is convenient and easy to navigate. Here’s what you need to know:
- How to apply. You can apply online at any time and complete the application within minutes. Alternatively, you can also call customer service at 1-888-819-6388.
- Prequalification. Figure offers a preliminary soft credit inquiry to check your eligibility and the amount you can qualify for. This won’t impact your credit score.
- Funding time. Figure’s HELOC is known for its quick funding times. Funding is available within five business days of approval.
- Documents needed. You’ll need to provide proof of income, your latest property tax bill, mortgage statement and homeowner’s insurance.
How Does the Figure HELOC Compare to Other Lenders?
If you’re deciding between various lenders, this chart may help:
| Lender | Credit Score Minimum | Rate Range | Closing Costs | Relationship Discounts |
|---|---|---|---|---|
| Figure HELOC | 640 | 7.05% to 15.30% | No closing costs, but there’s an origination fee | 0.25% discount for autopay, 0.25% discount for credit union membership |
| Bank of America | 660+ | Varies | No application, annual or closing fees | Up to 0.625% discount via Preferred Rewards, 0.25% for autopay |
| Wells Fargo | 620-640 | Varies | Varies; may offer closing cost credits | Up to 1.25% discount based on assets held |
| Chase | 620+ | Varies | Closing costs apply | Up to 1% discount based on balances and deposits |
Final Verdict: Should You Choose Figure?
Choose Figure if:
- You want fast funding.
- You prefer fixed interest rates.
- You have a credit score of at least 640.
- You don’t mind taking the full loan amount upfront .
Look elsewhere if:
- You need access over the funds gradually.
- You’re uncomfortable paying origination fees.
- You want in-person access or physical branches.
- You have poor credit
Key Takeaways
- Figure offers a fixed-rate HELOC with quick funding within five days.
- To qualify you’ll need a minimum credit score of 640 or better, 20%+ home equity, solid income and low income-to-debt ratio.
- Figure features a fully digital experience, including application, online tools and customer support.
- Figure HELOCs are best for borrowers with strong credit who need funding quickly, and those who want fixed monthly payments.
FAQs
- Does Figure offer fixed-rate HELOCs?
- Yes, Figure offers only one home equity product. It's a fixed-rate HELOC.
- What happens if I pay off my loan early?
- You can pay off your Figure HELOC early, and there's no prepayment penalty.
- Is the interest tax-deductible?
- Interest on a HELOC may be tax-deductible only if the borrowed funds are used to buy, build or substantially improve the home that secures the loan.
- Do I need to be a customer to apply?
- No, you don't need to be a customer to apply.
