Figure HELOC Review 2024

Good for: Borrowers who want a fast closing and to receive their full loan balance up front.
By
Taylor Getler
Dec 7, 2023

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Our Take

4.5

HELOCs
NerdWallet rating
The Nerdy headline:

Figure’s HELOC stands out for its fast closing (funding can be accessed within five days of applying) and for allowing lines of credit for second homes.

Borrowers will have to take out their full loan balance at closing, minus an origination fee, with the option to make additional withdrawals as they pay it off. All draws have a fixed interest rate. Figure’s draw period of two to five years is much shorter than what most lenders offer.

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Figure
Figure: NMLS#1717824

Max LTV
85%
Min. credit score
640
National / regional
National
Loan types and products
Home Equity
at Figure

Pros & Cons

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 $20,000 minimum initial draw.
  • Lender charges origination fees.
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Full Review

Figure HELOC rates and discounts

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. Offered 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 month

Prime rate in the past year — low

Prime rate in the past year — high

8.50%.

8.50%.

7%.

8.50%.

Figure does not post sample rates on its website; borrowers have to begin an application in order to access customized rate offers. Unlike a typical HELOC, which has a variable rate, Figure’s HELOC has a fixed rate. This could make it a solid choice for borrowers who value predictable future payments.

Borrowers may be eligible for a discount of 0.25 percentage points for enrolling in autopay or for joining Teachers Federal Credit Union, Quorum Federal Credit Union or Valley Strong Credit Union.

Applying for a Figure HELOC

The application can be completed entirely online, and borrowers will be asked to provide details about the property, annual income and contact information. The application can be accessed by clicking the “find my rate” button on the lender’s site. Borrowers in the state of New York are not eligible.

Figure uses an “eNotary” to verify the borrower’s identity via video chat, which the lender says can be completed in minutes.

The lender’s website has a live chat feature, which is accessible from 6 a.m. to 5 p.m. PST Monday through Saturday. When we tried it out, we were immediately connected to an agent; however, the answers were not as comprehensive as what we found in the FAQ section of the site.

Figure’s customer service line has the same hours of availability as its live chat feature, and borrowers can also email the lender for customer support. Contact information is listed on the FAQ section of Figure’s website.

Some lenders (such as Guaranteed Rate) have partnered with Figure to use its HELOC origination software, though these lenders will set their own requirements and risk assessments.

Opening and using a Figure HELOC

Figure says borrowers can close on their loan and receive funding within five days, though loan applicants have as long as 29 days after their credit has been pulled to complete identity and income verification. Borrowers who live in counties that don’t allow for e-signatures or that require in-person closing can expect a longer timeline than borrowers who complete the entire process virtually.

Borrowers are required to draw their entire credit limit (minus origination fees) at closing, though they can continue to make additional draws as they pay down the balance. In this way, Figure’s product is similar to a hybrid between a HELOC and a traditional home equity loan, which delivers a lump sum payable at a fixed rate.

At a minimum, any additional draws must be at least $500. Borrowers have only two to five years to make these draws, unlike a traditional HELOC that allows borrowers to make withdrawals up to 10 years after origination. The draw period is determined by the payback term that the borrower chooses:

  • Five-year term = two-year draw period.

  • 10-year term = three-year draw period.

  • 15-year term = four-year draw period.

  • 30-year term = five-year draw period.

Alternatives to a Figure HELOC

Borrowers interested in getting a HELOC with a fixed rate might be a good fit for PNC Bank, while borrowers who don’t want to take a minimum draw at closing may want to consider TD Bank.

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’s HELOC shares some characteristics with a home equity loan. The lender does not offer additional loan products.

at Figure

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Methodology

NerdWallet’s HELOC star ratings are awarded by the editorial team based on the following evaluated factors: combined loan-to-value ratio, lender fees, transparency on key factors, whether a fixed-rate option is available, rate discounts, ease of application, whether a prepayment penalty may apply and whether an initial draw is required.

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