How does a home equity line of credit (HELOC) work?
Whether you're planning a home renovation project, consolidating high-interest debt, or funding your dream vacation, Figure's Home Equity Line of Credit can be the key to making it happen.
$12B
in equity unlocked with Figure’s platform
100K+
households served with Figure's platform
100%
online application process
What is a HELOC?
- A home equity line of credit, or HELOC, is a revolving line of credit.
- Instead of receiving a one-time loan amount as you do with a traditional loan, a HELOC gives you a borrowing limit (or credit limit).
- As you repay the balance, you can withdraw money from the credit line as you would with a credit card when you need it.
HELOC qualifications
To qualify for a HELOC you need to have sufficient equity in your home.
This means that the amount that you owe on your home must be less than its current value. A lender will typically allow you to borrow and use up to 85% of the current value of your house minus the amount you owe on it.
A lender will also look at other factors when determining approval.
Such as credit score, credit history, employment history, monthly income, debt payments, and debt-to-income ratio. These same factors will be used to determine the amount of your credit line and your interest rate.
Figure’s application process is free, 100% online and it only takes a few minutes.
How much can be borrowed with a HELOC?
The amount you can borrow with a HELOC will vary based on certain factors such as the appraised value of your home and what percentage of that value the lender will allow you to borrow.
To determine how much you can borrow with a HELOC, you need to first calculate the maximum amount of equity that could be borrowed. Figure’s loan amounts range from a minimum of $15,000 to a maximum of $400,000.5navigates to numbered disclaimer
How do HELOC interest rates work?
There are lenders that offer both variable rate and fixed interest rate home equity lines of credit. Figure’s HELOC is a fixed-rate1navigates to numbered disclaimer line of credit. A fixed-interest rate HELOC can provide payment predictability and peace of mind for borrowers.
What can you use a HELOC for?
We surveyed more than 800 of our customers. The majority used their Figure HELOC for home improvement, debt consolidation, and backyard renovations. Other uses included business expenses, investment property, emergency fund, medical expenses, vacation, college tuition, roof repair, HVAC, and pool installations.
Home improvement
47.2%
Debt consolidation
34.6%
Backyard renovations
14.3%
What types of properties are eligible for a HELOC?
Figure offers loans on:
- Single family residences
- Condos
- Townhouses
- The property may be the applicant's primary or secondary residence
*Certain types of properties may not be eligible.
How does Figure HELOC compare against other options
Explore your options and see why our straightforward online application, quick funding, and competitive rates make us the smart choice for your financial needs.
| Figure HELOC1navigates to numbered disclaimer | Traditional Bank HELOC* | Average Personal Loan** | |
|---|---|---|---|
| Application | 100% online, see your rate instantly | Varies by lender, may require in-person processes | Varies by lender |
| Payment penalty | Never | Possible, varies by lender | Possible |
| Tax deductible | For home improvement (be sure to consult a tax professional) | For home improvement (be sure to consult a tax professional) | Not tax deductible |
| Funding speed | Funding in as few as 5 days2navigates to numbered disclaimer | Could be weeks | Varies, generally quick |
| Average APR | Competitive, fixed rates1navigates to numbered disclaimer | Variable rates, potentially higher | Typically higher than HELOCs |
Opens in a new window.2710 Excellent Reviews on trust pilot
Figure HELOC helped us to build our beautiful backyard where my family can enjoy time together. The process was straight forward. The representatives were professional and punctual in meetings. The app is great with all the information you could need.
Figure customer from California
My Figure HELOC helped us make some much needed improvements to our home. We replaced the siding and windows on the home, and the fence and retaining wall in our yard. The process of obtaining the loan was smooth and effortless. We got a great rate too! The service after the loan has been outstanding - its very easy to keep track of the loan balance and make payments.
Figure customer from Georgia
The HELOC helped us fund the patio of our dreams. The process was quick and easy. We were able to seamlessly process our application from the couch and in a few days had the cash in our account.
Figure customer from Connecticut
My Figure HELOC helped me to finish some home improvement projects that had been in the works for a long time. I was able to complete a master bathroom renovation, repair my screened in patio, tile a utility room closet, and install a couple of new exterior doors.
Figure customer from Indiana
Getting this HELOC was so simple and made the home improvement process much easier. I was able to get new windows, upgrade water heater, fence in yard and many more smaller upgrades. Thank you Figure for making this a reality for me.
Figure customer from Illinois
My Figure HELOC helped us pay to finish our basement, redo our deck, and replace our roof! All of these things helped to give us a more useable and valuable home. We eventually sold the house a couple of years later and the things we were able to get done on the house thanks to our Figure HELOC allowed us to sell our house for significantly more than we were expecting!
Figure customer from Ohio
See how much you could get with a no-obligation quote3navigates to numbered disclaimer