Many or all companies we feature compensate us. Compensation and editorial research influence how products appear on a page. Home Equity Figure HELOC Alternatives Updated Jan 09, 2024   |   9-min read   |   This article has been reviewed by a Certified Financial Planner™ for accuracy. Written by Cassidy Horton Written by Cassidy Horton Expertise: Banking, insurance, home loans Cassidy Horton is a finance writer passionate about helping people find financial freedom. With an MBA and a bachelor's in public relations, her work has been published more than a thousand times online. Learn more about Cassidy Horton Reviewed by Erin Kinkade, CFP® Reviewed by Erin Kinkade, CFP® Expertise: Insurance planning, education planning, retirement planning, investment planning, military benefits, behavioral finance Erin Kinkade, CFP®, ChFC®, works as a financial planner at AAFMAA Wealth Management & Trust. Erin prepares comprehensive financial plans for military veterans and their families. Learn more about Erin Kinkade, CFP® 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. Read on to discover how Figure HELOC compares to its competitors and alternative home equity financing solutions. In this guide: How does Figure work?Figure competitorsFigure alternativesHow to know which Figure HELOC alternative or competitor is best 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 can borrow between $20,000 and $400,000, with fixed rates from 8.30% to 16.25% APR. You must draw 100% of the funds at origination, and you have the option to redraw the funds you repay during a draw period of two to five years. Figure’s HELOC is available in 44 states and Washington, D.C. Excluded states as of November 2023 are: Delaware, Hawaii, Kentucky, New York, Texas, and West Virginia. Eligibility hinges on a minimum credit score of 640, and origination fees can reach 4.99%. What stands out about Figure? Our expert’s take Erin Kinkade CFP® The 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 the quick funding, soft credit check to prequalify, and the option to choose a fixed rate can be desirable features that not all companies offer. Figure competitors Three direct competitors offer highly rated HELOCs similar to Figure but with different details. Here’s how these lenders compare. FigureHitchSpring EQBethpage FCURates8.30% – 16.25% (fixed) APR7.75% – 13.00% (variable) APRStarting at 9.50% (variable) APRStarting at 6.99% fixed intro APR, then 8.50% (variable) APRMaximum loan amount$400,000$500,000$500,000$1 millionDraw periodMust draw 100% at origination2 to 5 years for additional draws10 years10 years10 yearsMaximum repayment period30 years30 years30 years20 yearsMinimum credit score640620 (640 preferred)620670Standout features100% online applicationOnline notary and supportNo out-of-pocket costsFastest average funding time (21 days)Compare rates for a home equity loan and HELOC with one applicationNo application, origination, or appraisal feesNo closing costs on lines up to $500,000Our rating (out of 5)4.9 Best overall HELOC4.4Best for fast funding4.3Best multi-product application4.2Best credit unionFind out more moreRead our review.Read our review.Read our review.Read our review. Hitch View Rates HELOC Editorial rating: 4.4 out of 5Best for fast fundingLimited state availability About Hitch Founded in 2022, Hitch is a relative newcomer that simplifies the way homeowners access the capital tied up in their homes. It combines modern technology with a quick approval process to provide a smooth borrowing experience. Figure is available in 44 states, but Hitch’s service area is limited to six states: Colorado, Florida, Maryland, Oregon, Utah, and Washington, D.C. (Figure is available in these six states too.) What makes it a good alternative to Figure? Here’s what stood out about Hitch in our research. Lower rates and higher maximum loan amounts As of November 2023, Hitch’s interest rates start out lower than Figure’s rates, and it offers larger potential loan amounts—up to $500,000 compared to Figure’s $400,000 limit. Lower maximum origination fees Hitch’s origination fee is also capped at 2.5% of the loan amount, whereas Figure’s fee can go up to 4.99%. No requirement to draw 100% of credit line Figure requires borrowers to immediately borrow their full credit line, but Hitch doesn’t have an initial draw requirement. If you live in its service area, Hitch may be worth looking into. Hitch pros and cons Pros Larger loan amounts Up to $500,000 Starting APRs may be lower Longer draw periods Up to 10 years No initial draw requirement Cons Variable rates can increase, meaning your monthly payments and total cost of borrowing may be higher. Available in only 5 states plus Washington, D.C. Appraisal fees may be higher Spring EQ View Rates HELOC and home equity loan Editorial rating: 4.3Best multi-product applicationRequires a $50,000 initial minimum draw About Spring EQ Spring EQ is another Figure HELOC alternative, offering lines of credit and home equity loans. When you submit an application, Spring EQ presents offers for both home equity products, so you can compare your options and choose the one that’s right for you. As an established lender, Spring EQ prides itself on quick funding. Its loans can be financed in as fast as 14 days but take 21 days to process on average. What makes it a good alternative to Figure? The following are reasons Spring EQ stood out to us when we compared it side by side to Figure. Lower credit score requirement Spring EQ showcases several strengths. For starters, its lower credit score requirement (620 versus 640) opens doors for a wider range of borrowers. Higher maximum loan amount Spring EQ’s loan amount ceiling of $500,000 gives it a leg up over Figure’s $400,000 limit. This can be beneficial if you have substantial equity in your home that requires a larger line of credit. Longer draw period Spring EQ’s HELOCs have a generous 10-year draw period, which is double Figure’s time frame. Lower required initial draw Similar to Figure, Spring EQ requires an initial draw—but if your credit line is over $50,000, you won’t need to draw your full credit line immediately with Spring EQ. Its requirement is $50,000. Spring EQ pros and cons Pros Access to larger loan amounts Up to $500,000 Lower minimum credit score requirement Longer draw period 10 years Lower required initial draw For lines of credit over $50,000 Serves Delaware, Texas, and Kentucky Where Figure isn’t available Cons Available in fewer states than Figure Takes longer to fund 14 days versus 5 days May require a manual appraisal Figure’s appraisal is automated Bethpage FCU View Rates HELOC Editorial rating: 4.2 out of 5Best credit unionLow fixed introductory rateNo fees About Bethpage FCU Bethpage Federal Credit Union is a trusted financial institution that offers a variety of services, including a home equity line of credit. Its HELOC is packed with features, including a competitive fixed introductory rate and no fees. What makes it a good alternative to Figure? Bethpage is an attractive alternative to Figure for several reasons. Lower introductory rate Bethpage FCU offers qualified borrowers a 6.99% fixed introductory rate that lasts for 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. Higher maximum line of credit and no fees 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. Longer draw period with lower required initial draw Bethpage’s 10-year draw period is double Figure’s, which gives you longer access to funds—and you’re not required to withdraw the full amount of your credit line with Bethpage, unlike Figure. Bethpage’s required initial draw is $25,000. Available in more states Bethpage is available in every state except Texas. Bethpage pros and cons Pros 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 Cons 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) Can reduce accessibility for borrowers with fair or poor credit Longest average funding time 34 days 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. FigureUnlockNavy Federal Credit UnionProductHELOCHome equity investmentHome equity loanMinimum credit score640550Not disclosedMaximum LTV95%80%100%Investment/loan amount$20,000 – $400,000$30,000 – $500,000$10,000 – $500,000Term lengthDraw period of 2 – 5 years5- to 30-year repaymentUp to 10 years5 – 20 yearsFeesUp to 4.99% origination fee4.9% origination feeNoneFind out moreRead our review.Read our review.See more. Unlock Find out more Home equity investment Editorial rating: 4.7 out of 5Best overall home equity sharing agreementNo monthly payments or accruing interestGet cash now in exchange for a share in your future home value About Unlock Unlock is a San Francisco-based company that offers a novel home equity investment product. Unlike traditional HELOCs, Unlock provides homeowners with cash in exchange for a share of their home’s future value, without the burden of monthly payments or accruing interest. Unlock is available in these states: Arizona, California, Colorado, Florida, Michigan, Nevada, New Jersey, North Carolina, Oregon, South Carolina, Utah, Tennessee, Virginia, and Washington. What makes it a good alternative to Figure? Unlock might appeal to you for the following reasons. Available to borrowers with lower credit Unlock is a viable alternative to Figure if you want to access your home equity without taking on more debt. It serves customers with lower credit scores, starting at 550. Get more cash You can get a lump sum worth up to $500,000, which is higher than Figure’s maximum. No monthly payments With no monthly payments, Unlock can be appealing if you’re looking for cash without the immediate pressure of repayment. Unlock pros and cons Pros No monthly payments or interest Accepts lower credit scores Minimum 550 Potential for larger investment amounts Up to $500,000 Partial buyouts available Cons Limited state availability 15 states vs. Figure’s 44 states (Figure is also available in every state Unlock is) You may be forced to sell once term ends if you can’t buy out Unlock’s share Long-term costs could be higher if property value increases significantly Navy Federal Credit Union View Rates Home equity loan Editorial rating: 4.1 out of 5Best for military membersNo feesBorrow up to 100% of your equity About Navy Federal Credit Union Navy Federal Credit Union caters to the financial needs of military members, their families, and Department of Defense personnel. It has one of the best home equity loans for competitive rates and high loan limits. What makes it a good alternative to Figure? For available members—those in the military and their relatives—who are open to home equity loans, Navy Federal offers plenty to like. (Check out our resource on HELOCs versus home equity loans if you’re unsure how they differ.) Lower starting APR Navy Federal is a strong Figure alternative if you’re in the military community. Its home equity loan has a lower starting interest rate than Figure—6.64%. No origination fees Unlike Figure, Navy Federal doesn’t charge origination fees, which can save you significant money. Borrow more of your home equity You can also borrow up to 100% of your home’s equity; Figure’s cap is 95%. Clear terms and no fees Plus, Navy Federal’s loans come with clear repayment terms and the assurance of no closing costs. The primary difference is how you receive the funds. Navy Federal’s home equity loan provides a lump sum at the beginning, but Figure’s HELOC is a line of credit you borrow from as needed. Navy Federal pros and cons Pros Lower starting interest rates No origination fees Borrow up to 100% of your home equity Available nationwide Cons Must be affiliated with the military Less flexible than a HELOC Funds are disbursed in a lump sum Unclear credit score requirements How to know which Figure HELOC alternative or competitor is best Choosing between Figure and its alternatives boils down to your financial needs and circumstances. If you value rapid access to funds with a digital-first approach, Figure’s HELOC might be appealing due to its use of AI and blockchain. Traditional home equity loans from Navy Federal and other lenders are ideal if you need a lump sum upfront. But if you prefer not to increase your debt, an equity-sharing agreement—such as you can get with Unlock—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 with a financial professional to ensure your choice aligns with your long-term financial goals. Why are HELOCs and home equity loans more popular since 2022? Our expert explains Erin Kinkade CFP® Many are doing this 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.