Figure Mortgage Review | The Simple Dollar

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Figure Mortgage Review | The Simple Dollar


If you’re looking for a new mortgage loan, Figure Mortgage is one of the lenders that is available to you. Figure Mortgage first opened its doors in 2018, but by 2020, the lender had already reached over $1 Billion in loan originations. Using a combination of blockchain technology and artificial intelligence, applicants who work with Figure Mortgage can expect speed and accuracy throughout the entire process.

But while this fintech company can offer you certain types of mortgages, it doesn’t offer traditional mortgage loans. Figure Mortgage currently only offers mortgage refinance and home equity line of credit (HELOC) loans to borrowers. It does not offer conventional loans to buy homes, nor does it offer any government-backed purchase offers either.

Still, there are plenty of reasons you may want to work with this lender. You can get a decision in as little as five minutes, and home equity lines of credits can be funded within 5 days of approval. That gives you quick access to the money you’ve built in your home when you need it most.

We use our proprietary SimpleScore methodology to rate all major lenders, based on a combination of customer satisfaction, fees, interest rates, loan terms, and customer support, to determine which are the best, so you can make an informed decision when choosing a mortgage lender.

Best for loans for current homeowners – Figure

As a fintech lender with limited loan options, Figure Mortgage is a great option for homeowners who want to refinance or borrow from their equity.

SimpleScore

3.3 / 5.0

Customer Satisfaction N/A

With Figure Mortgage, you’ll get the same level of speed as you would at a drive-thru — but the payoff is a new home loan, not french fries.

For example: “Getting a mortgage with SoFi is like joining an exclusive club. Membership has plenty of perks, but you have to bring a lot of money to the table.”

Figure Mortgage at a glance

Mortgage refinance and HELOC Get up to $250,000 for a line of credit or $500,000 to refinance your residence. Choose from a 5-, 10-, 15- or 30-year term on home equity lines of credit or a 30-year fixed refinance loan.
Certain credit union members qualify for an APR discount Be an active member or join Quorum Federal Credit Union, Valley Strong Credit Union or Teachers Federal Credit Union and receive a 0.50% APR discount
Autopay discount 0.25% if enrolled in Autopay

What we like about Figure Mortgage 

Fast, all-digital process

Figure Mortgage offers an entirely digital experience that can be completed in record time. Most potential borrowers can complete the initial application in about five minutes and get a near-instant decision on their loans. All that’s required to initially apply is the property information and a few personal details (including the name, date of birth, phone number and income).

If approved, additional information must be provided, like proof of home insurance and verification of income. All required documents can be uploaded to the online account, keeping the entire process digital.

[ Read: Why More Americans are Choosing Online Mortgage Lenders (Instead of Traditional Banks) ]

Quick funding

When it comes to funding for home equity line of credit loans (HELOCs), Figure Mortgage advertises funding within five days of applying in states. This also allows the use of e-notary and e-signing to help expedite the process.

The application requires your name, date of birth, employment detail, and property information. Once approved, you can sign and have your documents notarized online, making the entire process quick and easy. In many cases, it takes less than a week from application to funding.

[ Read: Home Equity Line of Credit vs Personal Loan ]

Prequalify without affecting your credit score

To prequalify and get access to rates, Figure Mortgage does a soft credit check and provides a rate based on the information you entered on the application. A soft credit inquiry won’t affect your credit score and you can use this rate to compare the Figure offer to other lenders. If you want to move forward with the line of credit or refinance with Figure, a hard credit check will occur, which may alter your rate.

[ Read: Credit Reports: Soft Credit Check vs. Hard Inquiry ]

Things to consider 

Not available in all states

Figure Mortgage is working to expand to all 50 states, but are limited to certain states for now.

Figure Home Equity Line is licensed in:

  • Alaska
  • Alabama
  • Arkansas
  • Arizona
  • California
  • Colorado
  • Connecticut
  • Washington, DC
  • Florida
  • Georgia
  • Iowa
  • Idaho
  • Illinois
  • Indiana
  • Kansas
  • Louisiana
  • Massachusetts
  • Maine
  • Minnesota
  • Missouri
  • Mississippi
  • Montana
  • North Carolina
  • Nebraska
  • New Hampshire
  • New Jersey
  • New Mexico
  • Nevada
  • Ohio
  • Oklahoma
  • Oregon
  • Pennsylvania
  • Rhode Island
  • South Dakota
  • Tennessee
  • Virginia
  • Washington
  • Wisconsin
  • Wyoming

Figure Mortgage Refinance is licensed in:

  • Alaska
  • Alabama
  • Arkansas
  • Arizona
  • California
  • Delaware
  • Florida
  • Georgia
  • Iowa
  • Idaho
  • Indiana
  • Kansas
  • Louisiana
  • Massachusetts
  • Michigan
  • Missouri
  • Mississippi
  • Montana
  • North Carolina
  • North Dakota
  • Nebraska
  • New Hampshire
  • New Jersey
  • New Mexico
  • Nevada
  • Ohio
  • Oklahoma
  • Pennsylvania
  • South Dakota
  • Tennessee
  • Washington
  • Wisconsin
  • West Virginia

Loans limited to refinances and lines of credit (HELOC)

If you’re on the market for a home purchase, you won’t be able to get a mortgage through Figure. Right now, this lender only offers refinance loans and HELOCs. The home equity lines of credit loans are offered on primary and secondary homes. Refinances are available on the primary residence only.

[Read: Consider These 3 Things Before Getting a Home Equity Loan]

Figure Mortgage vs. the competition

Third Federal Savings & Loan Mortgage

Like Figure Mortgage, Third Federal mortgage loans are only offered in certain states, but unlike Figure, this lender does offer new purchase loans with incentives.

Min. Credit

Not specified

Min. Down Payment

Not specified

SimpleScore

4.5 / 5.0

SimpleScore Third Federal Savings & Loan 4.5

Customer Satisfaction N/A

There are other perks, too — including discounts. Qualified homebuyers can get up to $3,000 in closing cost assistance on their loans. Those looking to refinance may be eligible for a special loan with just $295 in closing costs.

Third Federal’s online application process doesn’t compare to Figure, but it does keep the loan serving in house for the life of the loan. With Figure, the loan is usually sold to a new servicer after closing. Read our full Third Federal Savings & Loan Mortgage review.

New American Funding Mortgage

New American Funding can’t compare to the fast approval and funding you’ll get with Figure Mortgage, but that’s because New American has a completely manual underwriting process.

SimpleScore

4 / 5.0

SimpleScore New American Funding 4

Customer Satisfaction N/A

For those with nontraditional income or special circumstances, this can be a great opportunity to have your case heard for better mortgage refinance terms.

If you have less-than-perfect credit, New American Funding works with credit scores as low as 500. Compared to Figure’s minimum score of 640 (or 720 in Oklahoma), New American may be a better option. Read our full New American Funding Mortgage review.

Truist

Truist, which is the name of the newly merged Suntrust and BB&T, offers mortgage refinances and lines of credits to borrowers in all 50 states.

It also offers a special refinance loan for eligible veterans, which comes with a streamlined application and no home appraisal. It also offers the option of up to 100% refinancing.

With Truist, you have to apply to get an interest rate, just like Figure Mortgage. With minimum credit scores of 660, Figure may be able to offer someone with a lower credit score a more competitive rate. Read our full BB&T review.

How much will a Figure mortgage cost? 

The cost for a refinance or line of credit with Figure Mortgage varies by credit score, interest rate and the fees allowed in your state. Expect to pay between 3% and 6% of the principal of the loan amount for the fees.

With Figure, the origination fee is between 0% and 4.99% of the mortgage principal, which can be significant depending on the size of the loan. This doesn’t include appraisal, credit report and recording fees, which vary by state.

Figure offers two discounts, which can save you up to 0.75% on your interest rate. Members of certain credit unions can save 0.50% and those who choose autopay can save an additional 0.25%.

[ Read: How to Calculate Your Mortgage ]

Cheaper alternatives to Figure Mortgage

Though Figure Mortgage offers competitive rates on its refinances and lines of credits, there could be cheaper alternatives. Alliant Credit Union offers both loan types with a fixed origination fee of $1,795. With Figure’s origination fee of up to 4.99%, Alliant may be a cheaper alternative to Figure.

For veterans looking to refinance their homes, USAA’s mortgage loans could help to save more when compared to Figure. Its VA Interest Rate Reduction Refinance Loan (IRRRL) doesn’t have an origination fee, and USAA will pay a portion of the closing costs. That saves applicants an average of $2,842.

Figure Mortgage in the news 

  • In March 2020, Figure Mortgage was announced the winner of HousingWire’s 2020 HW Tech100 Mortgage award. “In just two years, Figure has become the fourth largest HELOC originator in the United States and homeowners can now borrow up to $150,000 with a fixed rate.”
  • According to a March 2020 Business Wire article, Figure Mortgage was able to secure over $1 Billion in loans in just 16 months, making it the first fintech company to do so.
  • The Charlotte Business Journal announced in July 2020 that Figure would head to the East Coast, opening up operations in Charlotte, North Carolina. The expansion is being spearheaded by longtime mortgage expert C.D. Davies, previously of Wachovia, CitiGroup, Capital One and Lending Tree.

Compare top mortgage lenders

We welcome your feedback on this article and would love to hear about your experience with the mortgages we recommend. Contact us at inquiries@thesimpledollar.com with comments or questions.



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