Adding to the growing list of products to help homeowners tap equity, new startup Figure Technologies is adding a HELOC alternative to the table.
Announced this week, Figure’s Home Equity Loan gives borrowers an alternative to a tradition Home Equity Line of Credit for borrowers looking for between $15,000 and $100,000.
The brainchild of former SoFi CEO and tech veteran Mike Cagney — who resigned last year amid workplace legal troubles — San Fransisco-based Figure takes the home equity loan experience and makes it easier and more digital, according to the company.
Earlier this year, Cagney raised $50 million in investment for Figure, which uses blockchain — a digital ledger that records transactions made in cryptocurrency like Bitcoin — to expedite the loan process.
Figure touts the speed and ease of obtaining its fixed-rate, lump sum loan, and can offer same-day approval and funding within five days, according to the company. Interested borrowers can prequalify, choose rate and loan terms, verify identity — by taking or uploading a photo of an approved ID — talk to a Figure eNotary and e-sign all within minutes online.
“At Figure, we’re transforming home equity by creating a faster, simpler and more transparent way to meet your financial goals. Learn how to use the equity in your home to consolidate debt, pay for home improvement, or fund your goals. The process is easy, secure, and faster than ever before,” according to its website.
According to their numbers, Figure’s loan has no ongoing fees after its “low” origination fee, and features fixed monthly payments and an average APR starting at 5.99%, with available loan terms of 5, 7, and 15 years.
While it is a full draw loan, possible future draws may be possible, according to the website.
The company also plans to roll out a sell and leaseback program in the future. A spokesperson for Figure told RMD that more specific details about the product will be released in the coming weeks.
Figure is the latest in a long line of equity-tapping solutions that have recently entered the market.
Written by Maggie Callahan