* Our APRs can be as low as 3.00% for the most qualified applicants and will be higher for other applicants, depending on credit profile and the state where the property is located. For example, for a borrower with a CLTV of 45% and a credit score of 800 who is eligible for and chooses to pay a 4.99% origination fee in exchange for a reduced APR, a five-year Figure Home Equity Line with an initial draw amount of $50,000 would have a fixed annual percentage rate (APR) of 3.00%. The total loan amount would be $52,495. Alternatively, a borrower with the same credit profile who pays a 3% origination fee would have an APR of 4.00% and a total loan amount of $51,500. Your actual rate will depend on many factors such as your credit, combined loan to value ratio, loan term, occupancy status, and whether you are eligible for and choose to pay an origination fee in exchange for a lower rate. Payment of origination fees in exchange for a reduced APR is not available in all states. In addition to paying the origination fee in exchange for a reduced rate, the advertised rates include a combined discount of 0.50% for opting into a credit union membership (0.25%) and enrolling in autopay (0.25%). APRs for home equity lines of credit do not include costs other than interest. Property insurance is required as a condition of the loan and flood insurance may be required if your property is located in a flood zone.
If you already own a home, Figure may help you access your equity or improve your loan terms. You can get a speedy home equity line of credit (HELOC) or mortgage refinancing if you live in any of the 30 states it serves, and the application is all online (except in a few select states).
- Funding in as few as five days on HELOCs
- Fixed interest rates
- All-online application
- Competitive rates
- Some complaints of misleading terms
- Not available in all states
Figure is quickly becoming one of the best online lenders for HELOCs and refinancing, but is it right for you?
Our Figure review will show you how Figure works and whether it’s right for you.
Figure at a Glance
Figure is an online lender specializing in issuing home equity lines of credit (HELOCs) and mortgage refinancing to homeowners. These loans can be taken out on a primary, secondary or investment property, though the rates may differ. Customers love Figure for its easy online application, but there have been some complaints about misleading terms, so be sure to read the fine print. The online lender offers fixed-rate HELOCs, meaning the interest you’ll pay on withdrawn money will remain steady during your loan term.
“A fixed interest rate can provide more stability in your payments,” says Jose Garcia, president and CEO of Northwest Community Credit Union.
- Mortgage refinancing: Around 7% (as of late January 2025)
- HELOC fixed rate: Around 8.25% (as of late January 2025)
RELATED: HELOC vs. Refinance
- Figure at a Glance
- Figure Loan Options
- HELOC
- See All 11 Items
Figure Loan Options
Figure offers HELOC loans and mortgage refinances. Let’s dig into the details of each product.
HELOC
A HELOC is a type of second mortgage that allows you to borrow money against the equity you have in your home and get that money as a line of credit. You can use your HELOC funds for various purposes, such as home improvements, education and debt consolidation.
HELOCs have a draw period when you can take out additional funds. You make minimum payments during your draw period. You withdraw the approved amount when you initially take out a HELOC from Figure.
As you pay it back, you can borrow more if and when needed during your draw period. Once your draw period ends, you can’t borrow more against your credit line. Nothing will change except that you won't be able to access any more funds. The payment terms will remain the same.
Figure offers HELOCs from $15,000 to $400,000. The actual amount is based on your home equity, which is the amount your home is currently worth, less the balance of your mortgage.
Let’s say your home is valued at $150,000. You owe $75,000 on your mortgage. That means you have $75,000 in equity ($150,000 - $75,000 = $75,000).
Figure will look at your home equity and allow you to borrow a portion of that equity with a HELOC.
The following are the required criteria:
- 50% Combined Loan-to-Value with Figure in the first lien position.
- 70% Combined Loan-to-Value with Figure in the third lien position for applicant(s) with a credit score of 640 or above.
- 75% Combined Loan-to-Value with Figure in the second lien position for applicant(s) with a credit score between 640 and 679.
- 80% Combined Loan-to-Value with Figure in the second lien position for applicant(s) with a credit score between 680 and 759.
- 85% Combined Loan-to-Value with Figure in the second lien position for applicant(s) with a credit score of 760 and above.
Your combined LTV ratio compares the balance of your mortgage and your HELOC with your home’s value. If your home is valued at $150,000 and you owe $75,000 on your mortgage, and you want a $30,000 HELOC, that would give you a combined LTV of 70% ($75,000 + $30,000 = $105,000, which is 70% of $150,000). That would be fine if your credit score is 640 or higher. You may be approved for a lower HELOC amount if your credit score is lower.
Mortgage Refinancing
Mortgage refinancing is replacing your current mortgage with a new one. Homeowners may refinance to improve their mortgage terms or take out cash.
With a cash-out refinance, Figure approves you for a mortgage that’s more than what you owe on your mortgage.
Let’s say you owe $75,000 on your mortgage and your home is worth $150,000. You have a couple of options for refinancing. If you want to lower your monthly mortgage payments, you could refinance your $75,000 balance with a $75,000 30-year fixed-rate mortgage. If you want to access some of your home equity, you could refinance with a $100,000 30-year fixed-rate mortgage. At closing, you’d receive $25,000.
Figure offers 30-year fixed-rate mortgage refinances. This means your loan is paid off over 30 years and your interest rate never changes. Your payment will always stay the same. However, this does not include escrow payments for taxes and insurance, which could change.
Who is Figure Best For?
Figure is for established homeowners who want to tap into your home’s equity. It’s also for homeowners looking for a better rate or improved terms on your current mortgage.
At this time, Figure offers HELOCs and mortgage refinancing. Its loans aren’t available in every state, but it’s working on expanding. Here’s where Figure’s products are currently available:
- HELOC: Alaska, Arizona, Arkansas, California, Colorado, Connecticut, the District of Columbia, Florida, Georgia, Idaho, Illinois, Indiana, Kansas, Louisiana, Maine, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, Tennessee, Virginia, Washington, Wisconsin and Wyoming
- Mortgage refinances: Alabama, Alaska, Arizona, California, Delaware, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Massachusetts, Michigan, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, North Dakota, Ohio, Pennsylvania, South Dakota, Tennessee, Washington, West Virginia and Wisconsin.
Only primary residences are eligible for Figure products. You can’t get a HELOC or refinance for investment properties or second homes.
How to Apply for a Figure Mortgage
Figure HELOC offers closings in as few as five days. You can complete the initial application online in about 5-10 minutes, and you’ll typically know immediately whether you’ve been approved. For Mortgage Refinance, you can complete the initial application online in about 15 minutes and close in a matter of weeks.
For HELOCs, Figure uses an Automated Valuation Model (AVM) to assess your property’s value so you don’t have to wait for an in-person appraisal. It bases its decision on comparable sales, public data records and trends in your local housing market. For mortgage refinances, Figure will work with you to schedule an in-person appraisal as well as any inspections.
Figure’s credit score minimum for mortgage refinances is 620. Its credit score minimum for HELOCs is 640 (720 in Oklahoma for both products).
Figure requires those applying for a HELOC to have a debt-to-income (DTI) ratio of 50% or less, and in many cases, you need a DTI ratio of 43% or less. You need a DTI ratio of 43% or less for mortgage refinancing.
Your DTI ratio compares your monthly debt payments to your pretax income. Let’s say you make $5,000 per month before taxes and have $2,000 per month in monthly debt payments, including your current mortgage payment, your new Figure loan payment, credit card payments, car payments and student loan payments. This gives you a 40% DTI ratio.
You’ll need to connect your financial accounts with Figure so it can verify your income. Have your account usernames and passwords available.
Figure will also need to verify your employment, so be sure to have your employer’s contact information available.
You should also be prepared to provide information from your past two years of tax returns. You’ll also want to have proof of your identity handy, like your state-issued identification.
Once you’ve been approved, many of Figure’s HELOC clients can work with one of its eNotaries. Your eNotary confirms your identity and reviews your documents with you, which you can sign digitally. Not all municipalities allow eNotaries, however. If so, Figure will work with you to set up an in-person notary appointment.
For mortgage refinance, Figure works with you to schedule an in-person closing at your home or your chosen location, depending on what’s allowed where you live.
Figure vs New American Funding
If you’re looking for an alternative mortgage lender, New American Funding offers many of the same services as Figure, plus more.
For one, New American Funding offers more loan types, including conventional loans, VA loans, FHA loans, reverse mortgages and more. Figure, on the other hand, specializes in HELOCS and mortgage refinancing.
New American Funding also has more than 250 physical locations in 43 states, whereas Figure is an all-online lender that operates in about 30 states.
New American Funding is best for first-time homeowners, especially those from minority communities, who need assistance in affording a down payment. Figure is best for longtime homeowners who want to tap into their home’s equity.
The Bottom Line
Figure is one of the best mortgage companies for current homeowners. Its HELOC application is fast and simple, and funding can be initiated in as little as five days.
Its mortgage refinancing options are limited, but its online application and accessible customer service make it worth considering.
Figure isn’t for people who are shopping for a first-time home loan. There are lots of lenders for first-time home buyers and traditional home shoppers. Figure focuses on current homeowners who either want better mortgage terms or want to access home equity.
Why You Should Trust Us
Benzinga has offered investment and mortgage advice to more than one million people. Our experts include financial professionals and homeowners, such as Anthony O’Reilly, the writer of this piece. Anthony is a former journalist who’s won awards for his New York City economy coverage. He’s navigated tricky real estate markets in New York, Northern Virginia and North Carolina.
For this story, we worked with Jose Garcia, president and CEO of the Illinois-based Northwest Community Credit Union. The credit union offers multiple financial services, including HELOC loans.
FAQ
Is Figure a legit company?
Figure is considered a reputable loan company and has won several financial awards. Like any other company, some complaints have been registered with the Better Business Bureau, but overall, customers are satisfied with their experience.
Who owns Figure Mortgage?
Figure Mortgage is owned by Mike Cagney, who founded Sofi.
Does Figure verify income?
Yes, Figure’s online application process includes verifying your income, credit score and debt-to-income ratio.
Sources
- Jose Garcia, president and CEO of Northwest Community Credit Union
Figure Lending LLC is an equal opportunity lender. NMLS #1717824
*Five business day funding timeline assumes closing the loan with our remote online notary. Funding timelines may be longer for loans secured by properties located in counties that do not permit recording of e-signatures or that otherwise require an in-person closing.
Submit Your One Minute Opinion
About Anthony O'Reilly
Anthony O’Reilly is an updates editor for Benzinga. He’s won numerous journalism awards for his coverage of the New York City economy and Long Island school district budgets.