How does Figure's HELOC compare to a Home Equity Loan?

Figure’s HELOC is very similar to a standard Home Equity Loan. Both have lower rates than personal loans, are secured by the home like cash-out refinances, and are disbursed in a lump sum. The difference is that closing a HELOC from Figure is far faster than closing a Home Equity loan from a bank or mortgage lender. Figure’s HELOC can get approval in 5 minutes and funding in as few as 5 days. Standard Home Equity Loans can take many weeks, even up to 40 days, to complete.

To qualify for a HELOC, you must have sufficient equity in your home, meaning the amount you owe must be less than the home's current value. Lenders typically allow borrowing up to 85% of the home's value minus what you owe. Besides equity, lenders consider factors like credit score, credit history, employment, income, debt payments, and debt-to-income ratio to determine approval, credit line amount, and interest rate. The qualification requirements are similar to applying for a mortgage, so it's important to research and ensure you meet specific lender requirements before applying.