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Figure

2022 review

Figure offers home equity lines of credit (HELOCs), mortgage refinancing, and personal loans. It uses blockchain technology to help reinvent the financial services industry.

9.5 / 10
Editorial Score
Andrew Koopman
Andrew Koopman
Finance Writer
January 6, 2022

Overview

Figure is a relatively new online lender, aiming to provide a faster and easier way to get the type of funding that you need. Figure prides itself on being one of the first lenders to use blockchain technology for loan origination, and hopes to revolutionize financial services through this technology.

While it started as a HELOC provider, Figure has expanded over the past few years to take on more borrowers and offer more services. As a direct lender, Figure offers HELOCS, mortgage refinancing, and personal loans. The company plans on launching its own mortgage service soon, so depending on when you’re looking to buy a home, Figure might be an option.

To provide you with the most accurate and up-to-date information, I tested Figure myself and will outline my personal experience in this review. As you read through, you’ll have all your questions about Figure answered, from the different loan types offered and the qualifications required, to the rates and terms you can get and the quality of the customer service.

Best Choice 2022
9.5 / 10
Editorial Score
Figure
Quick view:
Editorial Score
9.5 / 10
Online Services
Applications, Quote management, etc.
10.0 / 10
Customer Service
7.8 / 10
Available in all states
8.0 / 10
Available loan types
9.0 / 10
Products
5.75%-22.94% APR,
$5K-$300K Loan Amount
9.0 / 10

See Loan Offers on Figure

Products & Services

Home Equity Lines of Credit (HELOC)

While some banks and lenders have stopped offering Home Equity Lines of Credit (HELOCs), Figure still offers HELOCs to help you get funds quickly using the equity in your home. With a HELOC, you borrow against the equity in your home while putting up your house as collateral to secure the loan. They’re great for ongoing, long-term expenses like medical bills and home renovations.

As an online lender, the entire application process is online and it begins with a pre-qualification form that asks for some basic info about yourself, such as:

  • Legal name
  • Property address
  • Occupancy type
  • Financing purpose
  • Date of birth
  • Total annual household income
  • Source of income
  • Citizenship status
  • Phone number
  • Email

In addition, you’ll also need to create an account with Figure, agree to electronic paperwork, and give Figure permission to perform a soft credit inquiry. Note that the soft credit inquiry will not affect your credit score, so you can see your rates without worrying about any negative effects.

Figure claims that it takes just 5 minutes to pre-qualify, and that was about right when I was filling out the information myself. During pre-qualification you don’t have to upload any documents or verify any of the information, so it’s relatively quick and easy. And once you fill everything out and hit the “I Agree” button, you’ll be able to see your rates and what you qualify for.

If you choose to move forward with the HELOC from Figure, you’ll have to provide additional information, verify your identity and income, and link your bank accounts so that Figure can verify your total financial picture. A hard credit inquiry will also be done during this stage, which may affect your credit score.

With a HELOC from Figure, you can borrow $15,000 to $250,000 with rates starting as low as 3.00%, and you can receive the funding in as few as 5 days. You will have to pay an origination fee for the HELOC, but there are not any prepayment penalties for paying the line of credit off early. You can work with Figure and choose to pay a higher origination fee at the start for a lower APR.

One drawback to using Figure is that you have to take a 100% draw of the total loan amount at the start, you can’t just take smaller amounts as needed. But then as you repay the loan, you can make additional draws as needed during the draw period. Each additional draw you make will have its own interest rate, set as the day of the draw.

See HELOC Offers on Figure

Mortgage Refinancing

As of now, Figure only offers mortgage refinancing, not mortgages. Although the site has a page for mortgages, you can only join the waitlist with the promise that purchase mortgages will be offered soon. To see what rates and terms you qualify for with a mortgage refinance, you’ll need to provide Figure with the same general information as above and run through the pre-qualification process.

With mortgage refinancing through Figure, you have the option to choose 15-year or 30-year fixed terms. Interest rates on mortgage refinancing change daily, but Figure claims that the typical APR for this type of financing is 2.793%. The final rate will depend on additional factors such as your credit, income level, home value, term length, and more.

For 15- or 30-year conforming refinance loans, you can borrow between $75,000 and $822,375 from Figure. For a 30-year jumbo loan, you’re able to borrow up to 80% of the home’s value (up to a maximum of $2 million. With a cash-out refinance, the maximum amount that you can cash out is $500,000.

For any of the refinancing options, Figure requires that you can demonstrate an 80% loan-to-value ratio. This means that you can only borrow enough money to refinance up to 80% of the home’s value. So if you don’t have at least 20% in equity, you won’t be able to refinance your home. This amount coincides with the industry-standard 20$ down payment, which Figure will also require on purchase mortgages once that option goes live.

See Mortgage Refinancing Options on Figure

Personal Loans

To get started with a personal loan from Figure, you’ll need to provide much of the same information that the other services above require. This is all part of Figure’s standard pre-qualification process that enables you to quickly see what rates, terms, and amounts you qualify for before you get too deep into the process. For personal loans, Figure will ask you for much of the same information as above as you go through the application process.

Using Figure, you can take out a personal loan for between $5,000 and $50,000 with interest rates ranging from 5.75% to 22.94%. These rates also include a 0.25% discount for enrolling in autopay. The rate(s) that you qualify for will depend on your credit score, debt-to-income ratio, credit inquiries, credit utilization rate, and more. Most personal loans will have the option for either 36 or 60 month repayment terms.

Minimum and maximum amounts for personal loans are also regulated by states, so your place of residence may affect the amount that you qualify for, regardless of your financial situation. Figure also offers a Personal Loan Referral Program, in which qualified applicants (and the referrer) may be eligible for a $150 prepaid gift card.

As with the other services above, if you decide to move forward with the personal loan application process, you’ll need to provide more information. You’ll also have to link your income sources and verify your identity, as well as give Figure permission to perform a hard credit inquiry.

See Personal Loan Offers on Figure

Rates and Terms

The rates and terms that you may qualify for through Figure will depend on the type of financing you’re applying for and your financial situation. The biggest factors that will affect your rates include how much you’re looking to borrow, your credit score, your annual income, your debt-to-income ratio, and more.

Since Figure offers a few different loan types as seen above, I’ve broken it down in the table below to give you a quick idea of what you can expect:

Product Loan Amount Rates (APR) Terms
HELOC $15,000 to $250,000 3.00%+ 5 to 30 years
Mortgage Refinance $75,000 to $2,000,000 2.793% (average) 15 or 30 years
Personal Loan $,5000 to $50,000 5.75% to 22.94% 3 or 5 years

For each of the loan types and financing options that Figure offers, the loan may be subject to additional fees. Some of the fees that you can expect to pay depending on the type of loan include:

  • Origination fee (for all 3 loan types)
  • Appraisal fee
  • Settlement fee
  • Title fee
  • Recording fee

On the flip side, Figure does not charge any sort of application fee or prepayment fee. So you can apply for as many loan types as you want and you will not be penalized if you pay off any of your loans early.

View Loan Offers on Figure

Application Process and Qualifications

To make sure I got a complete idea of what Figure’s loan application process was like, I began running through it myself as if I was interested in getting a personal loan. This was quickly negated early on since Figure does not offer personal loans in my home state of Mississippi, but with a different address, I was able to move forward and see what all was involved.

As mentioned above in this review, the application process is entirely online and begins with pre-qualification in which you’ll need to provide some basic information about yourself. After which, Figure will quickly show you what rates and terms you qualify for. For a personal loan, you’ll need to provide the following:

  • Legal name
  • Address
  • Reason for the loan
  • How much you want to borrow
  • Living arrangement
  • Date of birth
  • Citizenship status
  • Total gross income
  • Source of income
  • Phone number
  • Email

While that might seem like a lot of information, at this stage in the process you don’t actually have to verify anything or upload any documents. So just as Figure claims, it actually did take me under 5 minutes to get pre-qualified. Before seeing your rates, you’ll also need to create an account and agree to all of Figure’s terms and conditions, including a soft credit inquiry.

One thing to keep in mind during pre-qualification is that, for all of the loan types offered by Figure, you’ll need to meet the minimum credit score requirements to qualify. The minimum score required for each type of loan is as follows:

Loan Type Min. Credit Score
Personal Loan 640
HELOC 620
Mortgage Refinance (Conforming Loan) 620
Mortgage Refinance (Jumbo Loan) 660

Once you finish prequalification, you’ll need to decide if the rates and terms that Figure offered you are agreeable. If so, you’ll move forward with the application process during which you have to verify your identity, link your bank accounts and income sources, and enable Figure to perform a hard credit inquiry to pull your full credit report.

So don’t move forward unless you’re sure you want to, since this credit check may negatively impact your credit score.

Prequalify for a Loan on Figure

Approval Time

With any of the loan types offered by Figure, you can finish the pre-qualification process in as little as 5 minutes and get pre-approved for the loan. But actual approval (and disbursement of the funds) will take longer and will depend on the type of loan.

For personal loans and HELOCs, Figure offers approval within 5 minutes, but the final approval is contingent upon verification of the information that you provided. Once everything is verified and approved, you can receive your funds within one to two business days. The entire process, from application to fund disbursement, can take as few as 5 days for these loan types.

For mortgage refinancing, you can expect the process to take longer. According to Figure, you will receive a decision on your refinancing application within about 3 weeks of submitting it. Other lenders can take anywhere from 30 to 60 days for mortgage refinancing approval, so Figure aims to beat the industry average and get back to you more quickly.

Customer Service

To make sure that I could get a full sense of Figure’s customer service and my review was as complete as possible, I contacted the platform myself and posed as a potential borrower. For this portion of the review, I pretended that I was in need of a personal loan for $15,000 to tackle some home improvement projects.

When I review lenders like this, I typically like to use the online chat feature since it’s live support (like a phone call), but you can also take screenshots which is ideal for a review! Unfortunately, Figure does not offer online chat support. Instead, the only ways to contact customer support are through email or on the phone. So I reached out via email to see.

For the email, I reached out over the weekend and stated what I was interested in (a $15,000 personal loan) as well as some other information such as what it was for, that I had a credit score of 720+, and that I was looking for the best terms and rates possible. You can see my original email and the response from the customer service representative below:

Customer Service

As you can see, I was purposely a bit vague in my email while also providing enough information to see what customer support would come back with. The response from Figure was detailed, sure, but I can’t help but feel it was also a bit of a cookie-cutter response, not really personalized to truly answer my email.

I say this because I purposely left out my state of residence (since Figure does not offer personal loans in MS), and I half expected the representative to ask that in response. Also, I already mentioned a credit score in my email, yet the response states the minimum score required, which was lower than the one I provided.

That said, the information about personal loans in the email was actually helpful. The minimum and maximum amounts were stated, the origination fee was mentioned, the application and approval times were provided, and the mention of only a soft inquiry being needed.

The bottom line from the email was basically to get online and apply for a loan and go from there. Good information, but again it wasn’t very specific to my email. Though I must say, I got a response in just over an hour even on the weekend, which I was pleasantly surprised with myself!

In addition to email support, Figure also offers customer service via phone call. For HELOCs and personal loans, customer support can be reached at 888-819-6388 Monday – Sunday from 9am – 9pm EST. For mortgage refinancing support, you can call Figure at 888-697-1506 Monday – Saturday from 9am – 9pm EST.

Summary

In the end, Figure is a great option for people that are looking for either a personal loan or that want to take advantage of the equity in their home through refinancing or a HELOC. Although the company is young, the online-only design and use of blockchain technology has helped it garner early attention and expand into what it is today.

Using Figure, you can receive funds via personal loan or HELOC in as little as 5 days from when you submit an application. And if you’re wanting to refinance your mortgage, Figure can get you a decision in about 3 weeks, which is faster than the industry average. So if you have good credit and need a personal loan or want to get some money from your home’s equity, Figure should be one of your top choices.

Prequalify for a Loan on Figure

FAQ

Is Figure a legit company?

Although Figure is a relatively new company, it is legit. While the company is not yet rated with the Better Business Bureau, it does have an Excellent rating on TrustPilot. The company has also worked with over 30,000 US households and has unlocked over $2 billion in equity for its members.

Who owns Figure?

Figure (full name: Figure Technologies) was founded by Mike Cagney, who still resides as CEO to this day. The company has not gone public yet, meaning it is still privately owned, with Cagney as the primary owner. Cagney also co-founded SoFi, which recently went public. If Figure follows the same path, public ownership may be likely within the next decade.

Does Figure have a prepayment penalty?

No, Figure does not have a prepayment penalty on any of the loan types or products that it offers. You can pay off mortgages, personal loans, and HELOCs early without having to pay a prepayment penalty.

Is Figure a good refinance company?

Due to its online application, quick approval process, competitive rates, flexible terms, and lack of certain penalties, Figure is a highly-rated mortgage refinance company. With its maximum loan amounts, if you’re looking to refinance more than $822,000, Figure will not be the best option for you.

Does Figure require an appraisal?

According to Figure’s site, an appraiser is required by law. Therefore, Figure will require an appraiser for mortgage refinancing and purchase mortgages (once offered). As the borrower, you are responsible for paying the appraisal fee on these types of loans.

Andrew Koopman
Written by
Andrew Koopman

Andrew Koopman is a freelance finance writer. He's written hundreds of articles over the years, specializing in topics such as improving credit, paying off debt, and applying for loans. Andrew graduated from Miami University with a Master's degree in mechanical engineering. He loves watching sports and enjoying the great outdoors with his friends and family.

Pros:
  • Fast and simple online application process
  • No prepayment penalty for paying your loan(s) off early
  • Fund disbursement in as few as 5 days
Cons:
  • Origination fee on all loan types
  • Does not offer service in all states
  • Maximum loan amounts are relatively low
Bottom Line

Figure is a relatively new online lender. That said, the company has grown rapidly and has unlocked over $2 billion in home equity, while simultaneously offering more products. It’s not yet rated with the BBB, which may be a deterrent to you due to its short track record.

It’s a good option for people with good credit that are looking to take advantage of equity in their home or get a quick personal loan. But if your credit is below 640 or you’re looking for business loans or student loans, you’ll need to look elsewhere.