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Home Equity HELOCs

Figure HELOC Alternatives

Figure provides fast funding through a tech-savvy home equity line of credit (HELOC) service designed for the modern homeowner. With its digital-first approach, it serves up sizable loans with the tap of a button. But beyond Figure lies a world of alternatives that could be a better fit for your needs. 

Our expert’s take on Figure

Erin Kinkade

CFP®

Figure’s requirement to take the full amount when you establish the HELOC could be a disincentive, in particular for those who don’t need the entire amount. But Figure’s quick funding, soft credit check to prequalify, and the option to choose a fixed rate can be desirable features that not all companies offer.

Company
Product
Rating (0-5)
HELOC
HELOC
HELOC
Home equity investment
Home equity loan

Figure competitors

These competitors offer top-rated HELOCs similar to Figure but with different details. Here’s how they compare. 

Bethpage FCU

Best for large HELOCs

4.7 /5
LendEDU Rating

Why it’s a top competitor

Bethpage Federal Credit Union is a trusted financial institution that offers various services, including a home equity line of credit. Its HELOC features include a competitive fixed introductory rate and no fees.

Bethpage FCU offers qualified borrowers a 6.99% fixed introductory rate that lasts 12 months, with the potential for a lower variable rate after that. Figure’s variable rates start at 8.30%, so Bethpage FCU could be more affordable, depending on your borrowing profile. 

With Bethpage, you’ll find a wider range of loan amounts than Figure—up to $1 million. Plus, Bethpage does away with numerous fees and absorbs all closing costs on lines up to $500,000. 

Bethpage’s 10-year draw period is double Figure’s, which gives you longer access to funds. Unlike Figure, you’re not required to withdraw the full amount of your credit line with Bethpage. Bethpage’s required initial draw is $25,000. Bethpage is available in every state except Texas.

  • Lower introductory rate can reduce costs
  • Higher loan amount ceiling of $1 million
  • No fees or closing costs for lines up to $500,000
  • Longer draw period than Figure (10 years vs. 5 years)
  • Requires membership with a $5 deposit into a savings account
  • Variable rate may be less predictable than Figure’s fixed rates
  • Unclear maximum loan-to-value requirements
  • Higher credit score requirement (at least 670)
  • Longest average funding time (34 days)
HELOC details
Rates (APR)12-month introductory rate starting at 6.99% for VantageScores of 720 and up, with variable post-introductory rates starting at 8.50%
Loan amounts$10,000 to $1 million
Repayment terms20 years

Hitch

4.2 /5
LendEDU Rating

Why it’s a top competitor

Hitch offers several distinct advantages that make it a compelling option for homeowners. One of the key strengths of Hitch is its streamlined application process. Like Figure, Hitch leverages technology to simplify the borrowing experience, allowing customers to apply online and receive quick approval.

Hitch aims to provide borrowers with lower interest rates by using a more efficient business model and cutting-edge technology, which reduces overhead costs. This allows Hitch to pass on the savings to customers, making its HELOCs not only more accessible but also more affordable over the long term. This approach mirrors Figure’s model but adds an extra layer of customer-focused flexibility.

Hitch offers customizable loan options, allowing borrowers to choose terms that best suit their financial needs and goals. This flexibility is enhanced by Hitch’s customer service approach, which prioritizes personalized support and guidance. For borrowers who value a tailored lending experience, Hitch presents an attractive alternative.

Hitch’s commitment to transparency and straightforward terms makes it a reliable option for borrowers who prefer clarity in their financial dealings. With no hidden fees and clear communication throughout the borrowing process, Hitch builds trust with its customers, positioning itself as a strong competitor to Figure in the HELOC market. This combination of technology-driven efficiency, competitive pricing, and customer-centric service makes Hitch a solid choice for those considering a HELOC.

  • Prequalify in minutes without affecting your credit score
  • Access up to 95% of your home’s equity
  • Assigned a dedicated loan officer during the application process
  • Only available in select states (see below)
Hitch state availability

As of August 2024, Hitch is available in the following states:

  • California
  • Colorado
  • Connecticut
  • Delaware
  • Florida
  • Illinois
  • Maryland
  • New Hampshire
  • New Jersey
  • New York
  • North Carolina
  • Oregon
  • Pennsylvania
  • South Carolina
  • Virginia
  • Washington
  • Washington, D.C.
HELOC details
Rates (APR)8.25% – 13.00%
Loan amounts$25,000 – $500,000
Repayment terms10-year draw; 20-year repayment

How does Figure work?

Figure leverages technology to streamline the home equity line of credit process, enabling homeowners to apply online and get approval within minutes. Its platform uses blockchain technology and advanced algorithms to expedite the underwriting process, which traditionally takes weeks. 

With Figure, you can secure a HELOC for almost anything—debt consolidation, home improvements, emergencies, and other major purchases. The application process involves a soft credit check and an inquiry to whether you have sufficient home equity. 

Once you’re approved, funds can be available in a matter of days. You must draw 100% of the funds at origination, and you can redraw the funds you repay during a draw period of two to five years. 

How to choose a HELOC lender: Our expert’s advice

Erin Kinkade

CFP®

Make sure you’re in a state where the lender does business. Then identify a lender that offers the amount you need. Factor in the interest rate and whether it’s variable or fixed. If you’re on fixed budget, you’d likely want to opt for a fixed interest rate and plan to refinance when interest rates drop. Finally, consider the funding time: How fast do you need the funds?

Figure alternatives

Outside of a home equity line of credit, you can use other products to leverage the equity in your home, such as home equity loans and home equity sharing agreements (aka home equity investments). 

Here’s how Figure compares to two companies offering home equity alternatives. 

Hometap

Best home equity investment

4.8 /5
LendEDU Rating

Why it’s a top alternative

Hometap is a compelling alternative to Figure’s HELOC for homeowners seeking a different approach to accessing their home equity. Unlike a traditional HELOC, which requires monthly repayments and accrues interest, Hometap offers a home equity investment. Instead of taking on debt, homeowners get a lump sum in exchange for a share of the future value of their home.

This can be an attractive option for those who want to avoid the added financial pressure of monthly payments and interest accumulation, making Hometap a flexible and low-risk alternative. Another significant advantage of Hometap is its straightforward and transparent application process.

Hometap evaluates each applicant based on the home’s value and the owner’s financial situation rather than focusing solely on credit scores or income levels. This makes it accessible to a broader range of homeowners, including those who might not qualify for traditional HELOCs due to stringent lending requirements. Hometap’s approach allows homeowners to tap into their equity without needing an appraisal or closing costs, which can reduce the upfront costs and hassle often associated with other home equity products.

Hometap’s investment model is well-suited for those who anticipate their home’s value will increase over time or who plan to sell their home within the next 10 years. Unlike a HELOC, which requires repayment with interest, Hometap’s investment is settled when the homeowner sells the home, refinances, or reaches the end of the investment term. This flexibility can provide peace of mind for homeowners who prefer not to have a fixed repayment schedule hanging over them.

  • Access up to $600,000 in as little as three weeks
  • No monthly payments or debt
  • No prepayment penalties during the 10-year term
  • Assigned a dedicated Investment Manager during the term
  • Transaction fee of 3.5%
  • Only available in certain states (listed below)
Hometap state availability

As of August 2024, Hometap is available in the following states:

  • Arizona
  • California
  • Florida
  • Michigan
  • Minnesota
  • Nevada
  • New Jersey
  • New York
  • North Carolina
  • Ohio
  • Oregon
  • Pennsylvania
  • South Carolina
  • Utah
  • Virginia
  • Washington
Investment details
Investment amount$600,000 max
Term length10 years
Repayment optionsSell your home, refinance, or buy out Hometap using a loan or savings

Spring EQ

Best for term length selection

4.1 /5
LendEDU Rating

Why it’s a top alternative

Spring EQ‘s home equity loan is a solid alternative to Figure’s HELOC for homeowners seeking a straightforward way to access their home equity. Unlike a HELOC, which functions as a revolving line of credit with variable interest rates, Spring EQ offers a fixed-rate home equity loan. This structure provides predictability in monthly payments, making it easier for homeowners to budget.

This can be appealing in an environment of fluctuating interest rates, where a fixed rate can offer peace of mind. A significant advantage of Spring EQ’s home equity loan is the ability to access a larger portion of your home’s equity. While many HELOCs, including Figure’s, allow you to borrow up to 85% of your home’s value minus any outstanding mortgage balance, Spring EQ often allows borrowers to access up to 90% of their home’s value.

This higher loan-to-value ratio can help homeowners maximize the cash they can withdraw. Compared to Figure’s HELOC, which offers flexibility with a revolving credit line, Spring EQ’s home equity loan provides a one-time lump sum with a fixed repayment schedule.

  • Offers a home equity loan and a HELOC
  • Access up to 95% of your home equity
  • Most borrowers don’t require an in-home appraisal
  • Funds available in 21 days, on average
  • $1,395 origination fee
  • Not available in 10 states (listed below)
Spring EQ state availability

As of August 2024, Spring EQ is not available in the following states:

  • Alaska
  • Hawaii
  • Idaho
  • Massachusetts
  • Missouri
  • North Dakota
  • New York
  • South Dakota
  • West Virginia
  • Wyoming
Loan details
Rates (APR)Starting at .50%
Loan amounts$25,000 – $500,000
Repayment terms5 – 30 years

How to know which Figure HELOC alternative or competitor is best

Choosing between Figure and its alternatives depends on your financial needs and circumstances. If you value rapid access to funds with a digital-first approach, Figure’s HELOC might appeal to you due to its use of AI and blockchain. Figure is similar to a home equity loan in that you get your funds upfront—but you can also borrow from the line of credit as you repay your balance.

A traditional HELOC from Bethpage might be more suitable if you want the option, but not the requirement, to access some or all of your credit line as needed. If you prefer not to increase your debt, an equity-sharing agreement—such as you can get with Hometap—will help you get cash without monthly repayments. 

Consider the type of borrowing you’re comfortable with, the flexibility you require, and any associated costs. It may also be wise to consult a financial professional to ensure your choice aligns with your long-term financial goals.

Why are HELOCs and home equity loans popular? Our expert’s take

Erin Kinkade

CFP®

Many consider using home equity to make additions or improvements on their home instead of selling it—either to live in for a longer duration or to rent the home out because they recognize the need to upgrade the home interior, exterior, or other features. The reason for this trend has been the increase in interest rates, resulting in higher mortgage rates and tighter lending from banks. That’s led to difficulty selling and buying a home. I have seen and heard of financial institutions limiting or discontinuing their lending for HELOCs or home equity loans due to the increased interest rate environment, tightening regulations, economic uncertainty, and caution resulting from the lessons they learned after the housing crisis from 2007 to 2009.

FAQ

Can I transfer my HELOC from Figure to another lender?

You can’t transfer your line of credit and keep the same rate and terms. You can refinance your HELOC from Figure with another lender, but your rates, terms, and more will likely change. It’s essential to compare loan terms and fees before doing so. Refinancing might offer you better rates or different terms, depending on your financial situation and market conditions at the time.

What should I consider when choosing an alternative to Figure’s HELOC?

When choosing an alternative to Figure’s HELOC, consider factors such as interest rates (fixed vs. variable), loan-to-value ratios, the speed of the application process, and any fees associated with the loan. Evaluate whether you prefer a line of credit—a traditional HELOC—or a lump sum loan, as Figure and many home equity loan lenders offer.

Are there downsides to using a Figure alternative, such as Hometap or Spring EQ?

A potential downside of using a home equity sharing agreement, such as Hometap, is that you give up a portion of your home’s future value, which could be significant if your property appreciates considerably.

Spring EQ’s home equity loan is similar to Figure’s HELOC with its fixed rates and lump sum distributed at once—but you can’t reborrow from your Spring EQ loan as you repay. You can reborrow from your Figure line of credit. Consider your long-term financial goals and needs before choosing an alternative.

Recap of the best Figure alternatives

Company
Product
Rating (0-5)
HELOC
HELOC
Home equity investment
Home equity loan