Figure HELOC Review 2024
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Our Take
4.0
Figure is one of the largest HELOC lenders in the nation by origination volume, and stands out for offering funding in as fast as five days. However, borrowers have to draw their full line amount at closing, and will pay an origination fee up to 4.99% of this balance. Borrowers have the option to redraw from the line as they pay it off.
Pros
- Specializes in HELOCs.
- The initial balance and any additional draws have a fixed interest rate.
- Closing may be available in just five days.
- HELOCs are available for second homes.
Cons
- Short draw period of two to five years.
- Requires a $15,000 minimum initial draw.
- Lender charges origination fees up to 4.99%.
Lender | Max. loan amount | Max LTV | Min. credit score | |
|---|---|---|---|---|
$400,000 | 85% | 640 | Visit Lenderat Figure at Figure | |
$750,000 | 80% | 580 | Visit Lenderat New American Funding at New American Funding | |
$350,000 | 80% | 680 | Visit Lenderat Rocket Mortgage, LLC at Rocket Mortgage, LLC |
Full Review
Figure HELOC rates
Most home equity line of credit, or HELOC, interest rates are indexed to a base rate called the prime rate. The annual percentage rate, or APR, that you’re offered will include a margin the lender has added to the prime rate. These margins depend largely on factors like your credit score, your existing debt and the amount you wish to borrow, but they will vary by lender.
Current prime rate | Prime rate last week | Prime rate in the past year — low | Prime rate in the past year — high |
|---|---|---|---|
7.75% | 8% | 7.75% | 8.50% |
On the day we checked, Figure’s advertised rates ranged from Prime - 1.05 percentage points to Prime + 8.35 percentage points. In addition to typical qualifications like high credit scores and low amounts of debt, access to the best rates will vary by state and are reserved for borrowers who choose a five-year repayment term. There is no option to customize interest rates online without starting an application.
Borrowers have to draw their entire balance when they open a Figure HELOC. As they pay it down, they have the option to continue drawing from the line. Each draw has a fixed rate.
Applying for a Figure HELOC
Applications can be completed entirely online. According to the lender, approval may be available in five minutes, and there are no in-person appraisal requirements.
Be prepared to provide personal information like your identification and social security number, as well as financial documentation such as bank statements, pay stubs, W-2s and mortgage documents.
Customer support is available via phone. When we called, we were placed on a brief hold before being connected with an agent who was able to answer our questions.
Opening and using a Figure HELOC
Homeowners can borrow a maximum of 85% of the value of their primary residence, minus any liens. If the HELOC is for a second home, this limit drops to 75%.
Most borrowers will have to take a minimum draw of $15,000, except in Alaska (where the minimum is $25,001) and Texas (where the minimum is $35,000). The maximum line amount is $400,000.
Unlike most HELOCs which have a draw period of 10 years, Figure customers have up to five years to make additional draws from their line. Borrowers have a choice of 5-, 10-, 15-, 20- or 30-year repayment terms.
Origination fees may cost up to 4.99% of the loan balance. Additional fees may include home valuation costs of $180, notary costs of $380 (if electronic notarization isn’t available in your county) and recording fees up to $315. You may also be required to pay recording taxes — this varies depending on where you live, and can be up to $1,400 per one thousand dollars borrowed from the line.
» MORE: Best HELOC lenders
Alternatives to a Figure HELOC
Borrowers who need fast funding may be interested in PenFed, which may offer closing in as few as 15 days.
Alternatively, borrowers who don’t mind drawing their entire line amount at once may actually be a better fit for a home equity loan. Discover is among NerdWallet’s highest-scoring home equity loan lenders.
HELOCs offer a flexible way to access home equity over a period of time and pay interest only on the funds you withdraw. However, rising interest rates can bump up your monthly payment, and, as with credit cards, it takes discipline to avoid overspending.
Alternatives to home equity lines of credit include a home equity loan, which offers a lump sum with a fixed rate or a cash-out refinance, which replaces your existing mortgage with a larger loan.
Figure does not offer either of these loan options.
NerdWallet’s HELOC star ratings are awarded by the editorial team based on the following evaluated factors: HELOC volume, combined loan-to-value ratio, whether a fixed-rate option is available, lender fees, initial draw requirements, flexibility of draw and repayment terms, digital application availability, customer support options and transparency to consumers on key factors. A recent regulatory action against a lender may affect its HELOC star rating.
