What is a Home Equity Line of Credit (HELOC)?
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.
HELOC 101: Unlock your home’s potential
Borrow money based on your property’s value
A home equity line of credit, or (HELOC), is a revolving line of credit secured by the equity in your home.
HELOC gives you a borrowing limit unlike a traditional loan
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).
Withdraw money as you need it with a HELOC
As you repay the balance, you can withdraw money from the credit line as you would with a credit card when you need it.1navigates to numbered disclaimer
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 could I borrow 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
Adjust the chart below to create the custom amount that relates to you.
$800,000
Current Home Value
$550,000
Remaining Mortgage Amount
In this scenario, you could qualify to borrow up to
$90,000
Find my rate*Based on borrowing 80% of your current home value
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 HELOC4navigates 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 |
| Prepayment 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 |
- 1
Complete our 100% online
applicationNo in-person appraisal needed and prequalification won’t
affect your credit score.3navigates to numbered disclaimer You’ll immediately see your
HELOC options. - 2
Get approved in 5 minutes,
funding in 5 days2navigates to numbered disclaimerBorrow from $15,000 to $400,0005navigates to numbered disclaimer with one-time
origination fee.6navigates to numbered disclaimer Easy online notary services in most locations
with expert support. - 3
Option to redraw up to 100%
Take advantage of the option to take additional draws
as needed.
Easiest loan
Easiest loan I ever had all electronic and very fast had funding in 4 days. Awesome customer service.
Written by customer— Paul P.
Amazing!! I'm so glad I found this!!!
Great experience!...I've been searching for a good debt consolidation place for a while and this is the place for sure! Had a hiccup in the beginning because I had a credit lock but after I talked on the phone to this lady I was approved in no time and got my money in less than 10 days! Seamless fantastic operation!
Written by customer— Matthew M.
Easy, fast and convenient
This had to be one of the easiest and most convenient home loans we have ever applied for. They didn't require a home inspection like other lenders (which we had to pay for). They didn't request a lot of other paperwork to verify our financial history. Everything was done over the computer or phone. This is how I have always dreamed it could be! Thank you!
Written by customer— Jerry W.
Excellent service
The process wasn’t complicated and very fast. In less than a week we had our money in the our bank account.
Written by customer— Anthony J.
2939 Excellent Reviews on trust pilot
Trustpilot reviews Opens in a new window.$14B
in equity unlocked with Figure’s platform
160K+
households served with Figure's platform
100%
online application process
See how much you could get with a no-obligation quote3navigates to numbered disclaimer