Figure Review for 2020

Figure is a refinance specialist offering standard and cash-out refinances, as well as home equity lines of credit. Learn more here.

Lending flexibility 1.0
Customer service 5.0
Ease of application 3.5
Online experience 5.0
Minimum down payment N/A
Minimum credit score 620*
Loan Products Offered

Conventional refinance
Cash-out refinance
Jumbo loan refinance
Home equity line of credit (HELOC)

Best Features

  • Quick, all-digital application process
  • Borrow up to $250,000 and have funding initiated in as little as 5 days* (HELOC)
  • Take up to $500,000 cash-out, depending on your equity (mortgage refinance)
  • Pre-qualify without hurting your credit score

Drawbacks

  • No home purchase loans offered
  • No FHA, USDA, or VA refinance offered
  • Not available in all states

Overview

Figure was founded very recently, in just 2018. It's currently a specialist company offering mortgage refinances (including cash-out) and home equity lines of credit.

So if you're buying a home, Figure won't be for you. But if you're refinancing or looking for access to cash using your home equity, this company may be worth a look.

The company has a slick, all-digital application process that helps customers get funding fast. And it's acquired plenty of customers in a short amount of time.

To see what kind of rates and fees Figure can offer you, request an estimate from the company.

Unlike with many lenders, you can get a quote using a 'soft' credit pull so your score won't be affected.

*Minimum credit score requirements and closing times vary by state and loan product. See below for details.


Figure rates, requirements, and costs

Normally, we use public records to report lenders’ average mortgage rates and median loan costs during the previous year. That allows us to compare interest rates and fees apples-to-apples. 

However, Figure is too recent a lender to have its statistics for those items in the public domain.

And, in any event, Figure’s refinance and home equity specialization might skew the results, since rates vary by loan type.

To find out what Figure can offer you, you’ll need to get in touch with the company. 

Prequalify without harming your credit score

The good news is, you don’t have to wonder what your rate and fees will be for long.

Figure will give you a quote based on a “soft” credit inquiry. And that won’t affect your credit score.

That said, if you decide to move forward with the company and do a full application, Figure will request a full credit report which can have a small effect on your score. The same goes for any mortgage company. 

Check rates from Figure today, September 29, 2020

Figure credit score requirements

Figure’s minimum credit score requirements vary based on the type of loan you’re applying for and where you live. 

  • Conforming mortgage refinance — min. 620
  • Jumbo/non-conforming mortgage refinance — min. 700
  • Home equity line of credit — min. 620*

*In Oklahoma, the minimum credit score for a HELOC from Figure is 720

To refinance with Figure, you’ll need a loan-to-value ratio of 80% or lower. That means you can borrow up to 80% of your home’s appraised market value. 

For Jumbo refinance loans, the loan-to-value ratio is 75% or lower.

It’s also important to note that for mortgage refinancing, you can borrow only against your main residence — no second homes or investment properties allowed.

Figure closing costs

In an email, Figure told The Mortgage Reports:

“[Closing] costs include charges that are normally associated with a mortgage application, such as the appraisal fee, title, settlement and recording fees as well as discount points, that can cost up to 2% of your total loan amount.“

Note that this lender requires the setting up of an escrow account and the upfront payment of a proportion of your annual property taxes and homeowners insurance premiums, if applicable.

For HELOCs, Figure charges an origination fee of up to 4.99%. 

Figure review for 2020

Clearly, Figure currently appeals to a limited market: those who wish to refinance existing mortgages to fixed-rate loans — or get home equity lines of credit.

However, the fact that Figure has achieved success in the refinance and HELOC markets so quickly suggests it does a good job in that niche.

This is very much a technology-led company. And its pioneering use of blockchain in the financial services industry can make the lending experience more convenient for borrowers. 

Blockchain technology helps improve financial transactions behind the scenes to make them more efficient, more secure, and less costly.

And, you can get an initial quote from this lender without affecting your credit score. So there’s no downside to finding out for yourself how good a deal you might be in line for.

Check rates from Figure today, December 4, 2020

Working with Figure

As you’d expect with such a technological innovator, applications are completed wholly online.

Figure’s website says you can normally complete an application “in minutes.” But you have the option to call for help if you have queries or need an extra hand along the way.

The company’s call center is open Monday through Saturday between 6 a.m. and 6 p.m. (PT). And Figure reckons, “Our average response time is less than 45 seconds.”

The website also says it takes “weeks (not months) to close.” Straightforward HELOC loans might even close in as little as 5 days.1

Presumably, customers with unique applications that are tougher to evaluate do take longer. And no matter how straightforward your application is, you’ll likely need an appraisal if you’re getting a mortgage refinance. 

But Figure’s technology may well facilitate very fast closings.

Where your state or local laws allow, you may be able to close on a HELOC transaction in the comfort (and safety) of your own home. This might require a video conference with a remote notary.

Figure customer service reviews

Figure scores an impressive 4.8 out of 5 on Trustpilot.

Of nearly 900 reviews at the time of writing, 91% ranked Figure as ‘excellent’ and another 4% described it as ‘great.’ That compares well with many other lenders.

For other metrics we typically look at — including the number of loans originated and J.D. Power survey scores — Figure is either too new or too small to be included.

Company
Mortgage Originations 2019
CFPB Complaints 2019
Complaints Per 1,000 Mortgages
2019 JD Power Rating
Figure 
N/A 3 N/A N/A
Wells Fargo
1,026,800 342 0.33 837/1,000
Quicken Loans
774,900 187 0.24 880/1,000
Chase
527,600 188 0.36 850/1,000

The elephant in the room here is Figure’s poor Better Business Bureau rating. It gets an F — the same as Wells Fargo.

But the more you look at this, the less of a problem it seems to be.

The BBB acknowledges that a big reason for the low score is the company being so young. And the other element is that Figure has failed to respond to two (yes, just two) customer complaints.

Mortgage loan products at Figure

Figure has a very limited list of mortgage offerings. Currently, Figure customers can choose from:

  • A 30-year, fixed-rate conventional refinance
  • Conventional cash-out refinance
  • Home equity line of credit (HELOC)

Customers with government-backed loans (including FHA, VA, and USDA), can still refinance with Figure. But they’ll have to refinance out of their current mortgage type and into a conventional loan.

That makes sense for some — like FHA mortgage holders hoping to get rid of mortgage insurance by refinancing.

But homeowners who want to use a streamline refinance, which has less paperwork and usually lower costs, won’t be able to use Figure.

Still, if you want the type of mortgage this lender offers, Figure may well be a smart choice.

Cash-out refinancing with Figure

For homeowners looking for a conventional cash-out refinance, note that Figure offers cash-out amounts ranging from a minimum of $2,000 to a maximum of $500,000. 

The amount of cash you can take out depends on your home value and equity at the time of application, and upon whether you qualify

Where can I get a loan with Figure? 

Figure’s availability depends on where you live and which type of loan you’re hoping to get. 

Figure offers mortgage refinancing in the following states: 

  • Refinance: AK, AL, AZ, CA, DE, FL, GA, IA, ID, IN, KS, LA, MA, MI, MO, MS, MT, NC, ND, NE, NH, NJ, NM, NV, OH, PA, SD, TN, WA, WI, and WV 

For those looking for a home equity line of credit, Figure is available in: 

  • HELOC: AK, AL, AR, AZ, CA, CO, CT, DC, FL, GA, IA, ID, IL, IN, KS, LA, MA, ME, MI, MN, MO, MS, MT, NC, ND, NE, NH, NJ, NM, NV, OH, OK, OR, PA, RI, SD, TN, VA, VT, WA, WI, and WY

Note, Figure is actively working to offer refinances and HELOCs in more states. 

So if you’re interested in working with Figure but don’t see your state listed above, check the company’s website to see whether it’s been added since this review was published. 

Is Figure the best lender for you? 

For many, the company simply won’t offer what they need, which takes it out of the running.

But, if you want to refinance a conventional loan or access cash using a HELOC, Figure might be for you.

Many customers love the online convenience and speed this company offers.

And you can get an initial quote without affecting your credit score.

So, even though Figure’s average rates aren’t published, you can see your personal rate without penalty.

1 Five business day funding timeline assumes closing the loan with Figure’s remote online notary. Funding timelines may be longer for loans secured by properties located in counties that do not permit recording of e-signatures or that otherwise require an in-person closing.

See a full list of Figure’s state licenses here.

Compare to These Lenders

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Sources:

  1. Average mortgage rates and fees sourced from self-reported data mortgage lenders are required to file under the Home Mortgage Disclosure Act. Rates and fees shown reflect the previous year’s data and may not align with today’s mortgage rates
  2. Monthly principal and interest payments calculated using TheMortgageReports.com mortgage calculator. Payments shown are based on a $200,000 loan amount and assume a “very good” credit score. Property taxes and homeowners insurance are not included. Your own monthly payment will vary
  3. Number of mortgage originations for the previous year sourced from self-reported data mortgage lenders are required to file under the Home Mortgage Disclosure Act
  4. CFPB Complaints reflect the number of mortgage origination or closing-related complaints filed with the Consumer Financial Protection Bureau for the previous year
  5. Complaints per 1000 mortgages reflect the number of official complaints filed against a lender with the CFPB for the previous year, compared to the lender’s total number of mortgage originations for the previous year
  6. JD Power Rating reflects the company’s customer satisfaction score according to JD Power’s most recent Primary Mortgage Origination Satisfaction Study. Survey respondents score their lenders in four areas: application/approval process, communication, loan closing, and loan offerings