See how Figure HELOC loans are changing the way we see home equity lines of credit.

Figure Digital Home Equity Loan: an In-depth Review

Figure is a San Francisco-based financial technology company led by co-founder and CEO Mike Cagney. You may recognize Cagney’s name as he was the former co-founder and CEO of SoFi.

Cagney launched Figure in stealth mode at the beginning of this year, leaving many people wondering what it was up to. Well, the cat is out of the bag.

The company released a fast, easy, and transparent home equity loan product. Let’s take a look at the specifics.

Figure home equity loan PLUS

Over the past decade, the origination processes for many types of loans have undergone optimization (personal loans, business loans, auto loans, etc.).

However, home equity loans have largely been left behind. They usually take about 45 days to process, are paperwork-heavy, and involve expensive fees.

Figure offers a new and better way. The company uses artificial intelligence and blockchain technology to digitize the home equity loan process.

How do you apply?

You can apply online by filling out a one-page form which asks for details such as property type, address, and income. It takes just a few minutes to complete.

Once you submit the application, Figure runs a soft credit check along with an automated property valuation. Within minutes, you can find out if you qualify as well as the interest rate you can get.

If you like the offer and want to take the loan, the next step is a virtual meeting with an eNotary from Figure. During the meeting, the notary will verify your identity and collect your electronic signature.

The time-to-funding is five to seven days—a huge improvement from the usual 45-day process.

This offering is currently available in 25 states but should reach the rest of the U.S. by the end of the year.

Figure Home Equity Loan highlights

  • Flexible loan amounts and terms.
  • Fixed interest rates.
  • Competitive origination fees.
  • No prepayment or ongoing maintenance fees.
  • Combined loan-to-value ratio (CLTV) up to 80%.
  • Same-day approval.
  • Funding within five to seven days.
  • Discount with AutoPay.
  • ACH payments only.
  • Additional draw options available.
  • Online account management via the website and mobile app.

Who can qualify for a Figure home equity loan?

The basic eligibility requirements include, but are not limited to, the following.

Personal qualification requirements

  • A camera on your smartphone, desktop computer, or laptop (so you can undergo the video meeting the eNotary from Figure).
  • A valid passport, state ID, or U.S. drivers license.
  • Active bank account.
  • Good credit score (~680 and above)

Home qualification requirements 

  • Single-family residences and townhouses.
  • A private home, second home, or investment property.
  • Your name must appear on county records as the owner of the property.
  • The property can be held solely, jointly, by an LLC, or by a revocable trust.
  • Hazard insurance.
  • Flood insurance in flood zone V or A.

Eligibility requirements exist for both the homeowner and the home. If two people own the house and one doesn’t qualify due to their credit, the other can apply on their own. If a person with multiple properties qualifies but one of their houses doesn’t, they can apply with a different property.

Figure Home Equity Loan frequently asked questions

How is your home’s value determined?

An Automated Valuation Model (AVM) is used to assess a property’s value. It takes into consideration public data records, sales of recent properties, historical price trends in the housing market, and more.

How does the draw work?

You’ll receive the full amount of your loan when you get approved. As it is paid back, you can draw from your credit limit again. Draws have to be at least $500 and no more than 10% of the loan amount (or the amount available of your credit line).

The draws are available for two years from the date of the loan origination. If the loan is paid off early, you can take an additional draw during the 12 months following the payoff.

How does the Figure eNotary work?

An eNotary from Figure will connect with you through an audio-enabled video session. You’ll confirm your identity using the form of identification that you provided with your application.

You’ll need to answer a set of knowledge-based authentication questions. Once you pass the security check, you’ll review the mortgage document and e-sign it.

The eNotary will then notarize the document. This process takes just a few minutes. If there are multiple signers, each person will have their own session with the eNotary.

Figure Home Equity Loan online application process

Now, let’s take a look at the online application process.

1. Visit Figure Home Equity Loan’s webpage and click “Find my rate.”

2. Enter your property address, property type, financing purpose, and legal name.

3. Provide your date of birth, annual household income, and email. Read and agree to the terms of use, privacy policy, and electronic communications policy.

4. Click the yellow “I agree” button.

After clicking the yellow button, you will receive a prequalified offer or a denial. Note, the process doesn’t impact your credit score.

Figure typically funds the loan within five days after completing the underwriting process successfully. Further, the entire process must be completed within seven days—otherwise, you’ll have to restart your application.

Other Figure products

The Figure home equity loan PLUS isn’t the only product Figure has up its sleeve. The company released word about two others that will hit the market soon.

Figure Home AdvantageTM

This is a sell-and-lease-back program that is an alternative to reverse mortgages. Figure will buy your home from you in cash and lease it back to you.

The lease terms are flexible, so you can stay in your home as long as you want. Also, you don’t have to close any doors for good. There’s a buy-back option so if you change your mind—you can buy your home back.

Wealth management

Little information is available on the wealth management product except that it will uncover investments that can help you earn more income.

You can join the waitlists for both of these products to learn more and find out when they launch in your area.

Compare Figure to other home equity loans

Figure is disrupting the home equity loan market, and it’s a good thing because the antiquated process was overdue for an update.

To see if you qualify, head to the website and fill out the simple form. Remember, it won’t hurt your credit score to check.

If you’d like to see how Figure stacks up to other home equity lenders, you can compare numerous industry leaders all on one convenient review page.

Shares