A new way to lock in your gains

Housing prices have hit record levels in recent years thanks to a fortuitous combination of low interest rates and low supply; however, the current mix of sky-high prices and rising interest rates are starting to cool the market, and the upper hand is starting to shift to buyers.

If you’re living in a home that you know isn’t going to be your long-term residence, but aren’t yet sure what’s next, the Figure Home Advantage can help you take advantage of a waning seller’s market and stay in your home until you’re ready to move.

What is Figure Home Advantage and how does it work?

Figure Home Advantage is a new type of sale-leaseback solution for homeowners. The way it works is pretty simple: Figure buys your home at a price based on comparable home sales and gives you a lease, so you can continue living there until you’re ready for your next step.

Using Figure Home Advantage can help you lock in the gains from selling without the hassles of moving. It also releases you from the responsibilities of owning a house, like paying property taxes, managing upkeep, or handling major repairs. You can stay as long as you like, as long as you stay current with your payments; and if you decide later that you want to own again, you can buy your home back.

Cash in on current value

Over the past nine years real estate prices have shot up, but many experts don’t expect this high-growth trend to continue. In a recent survey of 100 real-estate economists and experts conducted by Zillow and Pulsenomics, most predicted home value growth to slow from the current 8 percent annual growth rate to a meager 2.9 percent in 20201. Some of the hottest housing markets are already showing signs of deceleration. Seattle, which was leading the nation in home-value growth in 2017, reported the greatest slowdown over the past year. This is not to say the value of your home will drop, but it likely won’t grow as quickly as it has in recent years.

Selling is the most effective way to cash in on your home’s current value, but in most cases you would have to move as soon as the sale closes. With the Figure Home Advantage, you can stay in your home while considering where to invest your sale proceeds and when you want to move.

Take the stress out of selling

Let’s be honest, selling a home is far from fun. In fact, many people consider selling a home one of the more stressful activities of a lifetime, ranking it as high as divorce or death of a loved one2. The packing, cleaning, de-cluttering, repairs, open houses, and even nosy neighbors can make for a major headache that doesn’t go away, and we didn’t even mention the move.

Also when markets shift to buyers, sellers have to be more flexible with their bottom line and terms of the sale. Homes often sit longer and sellers have to do more to encourage movement. If you find yourself needing to sell quick in a market that’s not in your favor, you may have to reduce the sale price or offer to cover expenses for the buyers.

Figure Home Advantage sales are straightforward. You don’t have to worry about cleaning up or for showings, clearing out for open houses, or wondering what you may be asked to pay for.

Do away with cost and hassle of ownership

Even if you own your home outright, it’s not free to live there. The everyday costs of homeownership – maintenance, property insurance, and taxes – are expected and can be budgeted for, but surprise repairs pop up. Experts recommend setting aside one percent of your home’s value for annual repairs. But as a homeowner, you’re probably well aware that repair costs don’t show up at evenly divided intervals. Rather, it’s more common for homeowners to go several years with no repairs then be faced with a major expense. A new roof can cost anywhere between $1,700 and $10,000, air conditioners start around $1,500, and a new water heater, almost $1,0003. These are the real costs, but you will also have to spend time finding a trustworthy repair person and overseeing the work, which have a cost not associated with dollars.

Figure takes care of maintenance and all repairs for Figure Home Advantage residents, freeing up their time (and money) for the things they find more enjoyable.

Take your profits and your time

If you’re in a house that has appreciated considerably, and you know that it’s not your long-term home, you could consider selling. Of course you could go through a traditional sale, but you’ll likely have to spend time prepping and maintaining your home for showings, and then you’ll need to pack up and move when buyer comes along. Or, if that all sounds like more hassle than it’s worth, you could consider the Figure Home Advantage and take your profits now and not move until you’re ready.

*Figure Home Advantage is available in Atlanta, GA; Cincinnati, OH; Cleveland, OH; Dallas, TX; Houston, TX; Jacksonville, FL; Philadelphia, PA; Phoenix, AZ; Pittsburgh, PA; Reno, NV; San Antonio, TX; and Tampa, FL.

1. Zillow
2. University Hospitals
3. Home Advisor

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Figure Home Equity Loan PLUS is available in CA with more states to come.

Equal Housing Opportunity Equal Housing Opportunity

This site is not authorized by the New York State Department of Financial Services. No mortgage solicitation activity or loan applications for properties located in the State of New York can be facilitated through this site.

1 Our APRs range from 4.99% to 12.75%. The lowest APR is only available to consumers with excellent credit. For example, for a borrower with a CLTV of 45% and a credit score of 800, a five-year Figure Home Equity Loan Plus with an initial draw amount of $50,000 would have a fixed annual percentage rate (APR) of 4.99% and a 3.00% origination fee. Your total loan amount would be $51,500. Origination fees range from 0-3% of your initial draw depending on the state in which your property is located. The advertised rate is available only to borrowers using primary residences as collateral. Your actual rate will depend on many factors such as your credit, combined loan to value ratio, loan term and occupancy status.

2 Approval in 5 minutes and funding in 5 days is based on a typical customer experience for properties located in counties that permit e-signatures and e-recording. Actual funding times may vary. Due to state law, funding in 5 days is not applicable to first lien loans secured by owner-occupied properties in Vermont.

3 Home values and price appreciation are estimates based on our assessment of independent data sources and automated valuation models (AVMs).
4 https://www.hsh.com/first-time-homebuyer/cost-of-owning-a-house.html
5 You should consult a tax advisor regarding the deductibility of interest and charges to your Home Equity Loan Plus.
6 Sources: Credit card, Personal loan, Traditional Home Equity

*State and city home valuation appreciation rates are based on Zillow home value estimates ( https://www.zillow.com/home-values/), https://www.zillow.com/san-jose-ca/home-values/)

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