Figure.com Home Equity Line Review & Offers
What Is Figure.com?
Figure is a home equity lender that uses blockchain, artificial intelligence (AI) and analytics technology to streamline what was previously a very time-consuming borrowing process.
The company, which was established by Mark Cagney, the founder of SoFi, is paving the way in the home equity loan field by being the first company to utilize these technologies in its lending process. As the first exclusively-online home equity lender, Figure has reduced the application decision time to just five minutes and funding times down to five to seven business days.
This company offers sell and lease back options for homeowners as well as HELOC loans, which are a combination of home equity lines of credit and traditional home equity loans.
Figure.com Home Equity Line is ideal for:
Property owners with excellent credit who are looking to make major purchases, home improvements or consolidate debt but don’t want the higher APRs and shorter repayment terms that come with a traditional personal loan.
Figure.com Home Equity Line Review 2019
Interest rates: Figure’s annual percentage rates range from a low 4.99% up to 11.25%.
Rates, Fees: Figure does not charge any prepayment or check processing fees. However, the origination fee may be up to 3% of the entirety of the loan.
How to Qualify for Figure: In order to qualify for Figure, you’ll need a valid passport, state I.D. or U.S. driver’s license and an active bank account. Although the minimum credit score is 600, you’ll have significantly higher chances of approval if your FICO score is above 740. You’ll also need access to a smartphone or computer with a camera in order to have the live meeting with one of the lender’s eNotaries.
If multiple owners are listed on the property that you’re applying for and one of them does not meet the criteria, it is still possible to apply independently instead of both owners applying jointly.
Home Qualification Requirements: Both the borrower and the home must fulfill a set of qualifications. To ensure that your home qualifies for a Figure home equity loan, you should make sure that it includes a few different elements.
You must be the legally-named owner of the property, as reflected in county records. As long as your name is bound to the structure, it can be held solely or jointly, by an LLC or a revocable trust. You should also have both hazard and flood insurance for the home.
If you have multiple properties and one of them does not meet the eligibility requirements, you can always apply with just the ones that do fulfill the standards.
Is Figure.com Legit and Safe?
Although Figure was only established in October 2018, its founder, Mark Cagney, has a longstanding reputation within the loan industry, having also established the well-known lender SoFi. Most of Figure’s online reviews are very positive, with an 8.9/10 score on Trustpilot.com.
Funding Time: While applying for a home equity loan and waiting for its disbursement used to be a lengthy and cumbersome process, the funding time for a Figure loan is just five to seven business days.
What types of property can you use as security for a home equity loan with Figure.com?
Private homes, second homes, investment properties, single-family residences and townhouses are all eligible properties to use as security for a Figure Home Equity Line.
Loan example: A borrower with excellent credit who takes out $80,000 with 8.2% APR and a ten-year repayment term will have monthly payments of $979.10.
Figure.com Pros and Cons
- No prepayment or check processing fees
- Large range of loan amounts, with a maximum of $150,000 per property
- Low APRs starting at 4.99%
- Quick to fund compared with similar lenders
- Quick loan decision
- Long repayment terms, with a maximum of 30 years
- New company without an extensive track record
- Not available in all 50 states
- Borrowers with credit scores below 680 will have difficulty qualifying
How is your property’s value assessed?
Figure uses an Automated Valuation Model (AVM) to determine the value of your property. This method takes price trends, public records and recent sales of similar properties into consideration.
How does the draw work?
Once you’re approved, the full amount will be made available at one time. As you make payments on the loan, you’ll be able to draw from your credit limit again. Draws cannot exceed 10% of the loan or credit line amount, and must meet a minimum of $500. They remain available for up to two years from the loan’s origination date.
What are the steps of the Figure eNotary process?
As long as you have a smartphone or computer with a camera, the notarization process should be relatively smooth and only take a few minutes. Once you’re in the video chat with the eNotary from Figure, you’ll confirm your identity with a form that was issued to you with your initial loan application. Next, you’ll answer a set of authentication questions, review the mortgage document and sign it before the eNotary notarizes the document.
Figure’s Home Equity Line is using some of the most cutting edge online technology to revolutionize the lending process. Where the typical time to fund a home equity loan used to be 45 days, that time spans just five to seven days due to the company’s exclusively-online nature.
The company itself is very new and doesn’t have a proven track record yet. However, it was established by the founder of another major company that has a reliable reputation within the lending world.
With a maximum loan amount of $150,000 per borrower per property, fast funding times and some of the lowest rates in the industry, a Figure Home Equity Line is worth looking into if you’re a borrower who meets their eligibility requirements.