Figure HELOC Alternatives

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)

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)

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)

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)