Many or all companies we feature compensate us. Compensation and editorial
research influence how products appear on a page.
Home Equity

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. 

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 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 FCU
Rates8.30% 16.25% (fixed) APR7.75%13.00% (variable) APRStarting at 9.50% (variable) APRStarting at 6.99% fixed intro APR, then 8.50% (variable) APR
Maximum loan amount$400,000$500,000$500,000$1 million
Draw periodMust draw 100% at origination

2 to 5 years for additional draws
10 years10 years10 years
Maximum repayment period30 years30 years30 years20 years
Minimum credit score640620 (640 preferred)620670
Standout features100% online application

Online notary and support

No out-of-pocket costs
Fastest average funding time (21 days)Compare rates for a home equity loan and HELOC with one applicationNo application, origination, or appraisal fees

No closing costs on lines up to $500,000
Our rating (out of 5)4.9 

Best overall HELOC
4.4

Best for fast funding
4.3

Best multi-product application
4.2

Best credit union
Find out more moreRead our review.Read our review.Read our review.Read our review.

Hitch

HELOC

  • Editorial rating: 4.4 out of 5
  • Best for fast funding
  • Limited 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

HELOC and home equity loan

  • Editorial rating: 4.3
  • Best multi-product application
  • Requires 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

HELOC

  • Editorial rating: 4.2 out of 5
  • Best credit union
  • Low fixed introductory rate
  • No 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 Union
ProductHELOCHome equity investmentHome equity loan
Minimum credit score640550Not disclosed
Maximum LTV95%80%100%
Investment/loan amount$20,000 – $400,000$30,000 – $500,000$10,000 – $500,000
Term lengthDraw period of 2 – 5 years

5- to 30-year repayment
Up to 10 years5 – 20 years
FeesUp to 4.99% origination fee4.9% origination feeNone
Find out moreRead our review.Read our review.See more.

Unlock

Home equity investment

  • Editorial rating: 4.7 out of 5
  • Best overall home equity sharing agreement
  • No monthly payments or accruing interest
  • Get 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


Home equity loan

  • Editorial rating: 4.1 out of 5
  • Best for military members
  • No fees
  • Borrow 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.