Figure Home Equity Line is an online lender headquartered in San Francisco, CA. It offers home equity line products. This review on Figure Home Equity will help you decide whether to choose this firm to pay off your debts or not.
Figure is a new online lender that started its journey in 2018. The former SoFi CEO Mike Cagney established this blockchain-based online lending platform. The firm has a reputation for making loan decisions in less than 5 minutes. Not to mention, it uses AI to enhance security. The HELOC loans of this firm can be used for:
- Debt relief services
- Credit card consolidation
- Home improvement
- Major purchases
- Home refinancing
- Cash-out mortgage refinancing option and others.
A person with a credit score of 620 or more can apply for a loan of $10,000-$250,000. Figure only allows a loan if the applicant has a property to keep as a mortgage. The average APR of Figure home equity loans ranges from 2.88% to 13.25%. Your monthly payments will be the same as you start and there will be no ongoing fees whatsoever. In fact, you will be debt-free in 3-5 years.
How Does Figure Work?
Interested users must fill up an online application form where you have to provide some personal information. After that, Figure will run a soft credit check on you going through your financial background. The firm will offer you the requested loan amount with a fixed interest rate. This rate will fully depend on your credit history and your credit score. If you have an excellent credit score, you will most probably get the money with the lowest interest rate. The firm will approve your loan request only if you are eligible.
Remember, once you have decided to submit the loan application, the firm will run a hard pull on you and this may initially hurt your credit score. But you can revive your credit score with this loan by paying off your debt. Figure doesn’t take much time to send you the borrowed money. You will just have to wait for one or two days.
To get a HELOC loan from Figure, you have to provide the following information:
- Your property address; the one you are going to use as a mortgage.
- The type of property (e.g. primary/secondary residence or investment property)
- Your legal name
- Date of birth
- Your annual gross income
- Your email address
Features of Figure Home Equity Loan
- No appraisal, maintenance or prepayment fees: Figure doesn’t charge any appraisal fees while other debt relief companies do. Even if there are some primary appraisal expenses, the firm doesn’t charge any. The firm also charges no maintenance fees. Additionally, if you want to pay off your credit early, you won’t have to give any prepayment penalty.
- Fast approval: Figure has the fastest loan approval process. Your loan request will be approved within 24 hours and you can receive your loan money in two or three days.
- Competitive rates: The annual APR offered by Figure is lower than its competitors. Applicants with an excellent credit score can get the loan with the lowest rate which is only 2.88%. The highest APR is also lower than the competitors and the rate is 13.25%.
- Origination fee: Figure charges an origination fee up to 4.99%. An origination fee is compensation charged by the lender to process a new loan application.
- Subordination fee: The firm charges a $300 subordination fee and a $0 to $100 release recording fee which varies from applicant to applicant.
- Property insurance and flood insurance: You must keep your own property as a mortgage. This property must have insurance. In addition, if you are in a flood zone, you must have flood insurance.
- People with a low credit score cannot borrow: Figure doesn’t approve their loan request who have a low credit score. You must a minimum credit score of 620. Therefore, those with a credit score lower than this cannot be approved for a HELOC loan.
- New company: Figure was established in 2018 which means it is new to the industry. There is not enough success story of this firm. So, you have to be very careful before getting a personal loan from this firm.
Even though Figure has a good reputation, some user reviews appear to be not so great. Some user-review says that Figure home equity doesn’t serve as they promise. Some said that the firm doesn’t supply the fund in 5 days. They may take more than 5 minutes for approval yet the firm promises that they are superfast in approving loans.