Figure Lending LLC

Figure is a financial technology company that primarily offers home equity lines of credit, known as HELOCs, using a fully online application process and blockchain-based record keeping on the back end.

A HELOC is a revolving line of credit secured against the equity in your home. This means your home serves as collateral for the loan. You can borrow up to a set credit limit during the draw period, repay it, and borrow again, similar to a credit card. Interest is usually variable, meaning your rate can change over time based on market indexes. After the draw period ends, a repayment period begins during which you pay down the outstanding balance. Because your home is collateral, failure to repay could result in foreclosure.

Figure's HELOC is distinctive in that it typically offers a fixed rate for an initial draw amount, rather than the purely variable rate structure common to traditional HELOCs. This can provide more payment predictability for borrowers who plan to take a single lump draw rather than using the line over time.

The application process is managed online and Figure has marketed fast funding timelines compared to traditional bank HELOCs. The process uses automated income and asset verification where possible.

Figure also offers student loan refinancing and personal loans in some markets, though home equity products are its primary focus.

Before taking out a HELOC from Figure or any lender, consider whether the reason for borrowing justifies putting your home at risk. Compare Figure's rates and fees with those of banks and credit unions offering HELOCs. Key factors to compare include the annual percentage rate, origination fees, draw period terms, repayment period structure, and any prepayment penalties.