A HELOC, or home equity line of credit, can be a great way to realize some of the value of your property so you can put that money to use. Some people use it to renovate their homes and increase their value even more. Others might use it for emergency needs, or for building wealth in some other way. But if you can't find a lender, none of that matters.

That's where Figure comes in. We're still here for you.

Why is it hard to find a HELOC product right now?

If you've been following macroeconomic trends, you know that the price of money is low. Interest rates have been low and there's plenty of available credit. So why are HELOCs the exception? Why does it feel like it's so hard to secure a HELOC right now?

It's first important to understand that HELOCs aren't necessarily tied to the mortgage interest rates you may already be familiar with. According to HSH, "unlike most first mortgages which are currently sold to Fannie Mae or Freddie Mac or backed by the FHA, second liens are usually held by the mortgage lender." In other words, the risk goes back to the mortgage lender. And because the mortgage lender doesn't have as much to fall back on, they have to charge higher interest rates in general. That's particularly true in a high-risk environment.

While HELOC rates may be low relative to other eras of HELOC interest rates, that doesn't necessarily mean they'll meet your expectations. The truth is, many homeowners are surprised when they see what these interest rates are, especially when most other interest rates are low.

How a HELOC from Figure works

By working on the blockchain, Figure is able to offer fast-approval HELOCs.

If you've been browsing HELOC opportunities, you're probably familiar with how other lenders try to sell them. Introductory rates, hidden fees—it can all start to get messy in a hurry. But a more straightforward HELOC based on blockchain principles can be more intuitive. It can also be a great way to get moving on a home renovation project you've been thinking about for a while.

A typical HELOC situation can be extraordinarily frustrating for the average consumer. If you've never taken out a HELOC before, you might find yourself enticed by advertising phrases like "interest rates that have never been lower!" But relative to what? Before you think about starting to pay these fees by taking out a HELOC, you're going to want to know what they're comparing it to.

How to apply for a HELOC from Figure

If you're already sold on the idea of a HELOC, that naturally leads to the next question: what are your first steps? Fortunately, this is where blockchain technology shows its potential. Rather than taking what feels like endless days to secure approval and transfer of the money, a HELOC from Figure can work much more quickly.

The steps are simple:

  • Visit our HELOC application page. You'll see there that you only have to fill out some basic information about your home to move on to the next step. You'll also create an account that you can keep to manage your relationship with Figure, which will make it easy to view all of your HELOC information at one source.
  • Continue through the steps. You'll also see that there are just some basic steps, such as verifying your identity. These are all typical of a loan application process, and help ensure a secure transaction. After all, you wouldn't want someone else taking out a HELOC in your name.
  • Sign the appropriate documents. Make sure they're filled out as accurately and honestly as possible, as these are binding documents, just like with any other HELOC.

From there, you'll see the advantage of working with the blockchain. Speaking of which:

Why Blockchain is better than the traditional route

You might have heard a lot of hype about the blockchain and what it means for the future. But what specifically about this technology makes it so much better for applying for a HELOC? Because blockchain technology offers a clear transaction record and requires only digital platforms, it works much more efficiently than traditional routes and reduces the speed at which the funds can move to your account. It also means that the application process can work as quickly as the people reviewing it.

With more efficient access to money and a quicker turnaround process, you're free to get started on the project you want to fund with the HELOC. That, in turn, puts more money into the economy at faster rates, all without sacrificing security on the loans. It's a powerful way to go about improving your home.

Interested in doing this for yourself and seeing what it's all about? Let us Figure out your HELOC application with rapid turnaround in just a few days.

These articles and resources are not intended to be financial advice. They are for educational purposes only, and financial decisions should be based on specific financial needs, goals and risk appetite.

1 Approval may be granted in five minutes but is ultimately subject to verification of income and employment. Five business day funding timeline assumes closing the loan with our remote online notary. Funding timelines may be longer for loans secured by properties located in counties that do not permit recording of e-signatures or that otherwise require an in-person closing. In addition, funding timelines may be longer if we cannot readily verify that your property is in at least average condition with no adverse external factors with a property condition report and need to order a desktop appraisal to confirm the value of your property.

2 You will be responsible for an origination fee of up to 4.99% of your initial draw, depending on the state in which your property is located and your credit profile. You may also be responsible for paying recording fees, which vary by county, as well as a subordination fee if you ever ask Figure to voluntarily change lien position.

3 You should consult a tax advisor regarding the deductibility of interest and charges to your Figure Home Equity Line.

4 The Figure Home Equity Line requires that you pledge your home as collateral, and you could lose your home if you fail to repay.