Finance Your Home Improvement Projects

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.

Figure’s HELOC and a Personal Loan have similar online application processes, often completed online. Personal Loans can be funded in as little as 24 hours, making them one of the fastest ways to access cash. However, Figure’s HELOC is one of the fastest HELOCs out there, with approval in just 5 minutes and funding in as few as 5 days. Since it’s secured by your home, it also typically comes with a lower rate and longer repayment terms, meaning a lower monthly payment compared to a Personal Loan.

Figure’s HELOC can be in the 1st, 2nd, or 3rd lien position, which means you can get one whether or not you already have a mortgage. With a Cash-Out Refinance, you need to replace the existing first-lien mortgage, so if you already have a low mortgage rate, getting a cash-out refinance can cost you a lot of money. Additionally, the standard application process is often longer for a Cash Out Refinance than for a Figure HELOC.

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.

Figure’s automated application process is fast and easy and getting your rate won’t impact your credit. If you aren’t approved your first time, don’t fret! You can always reapply if your situation changes (like your credit score goes up or you get to pay down some of your mortgage.) A HELOC isn’t right for everybody and you could try a Personal Loan, Credit Card, or other funding option.

The most common options include:
· Home Equity Line of Credit (HELOC): Allows you to borrow against your home equity with flexible terms. Figure offers a fast, fully digital HELOC process where you can apply in just 5 minutes and get funding in as few as 5 days.
· Home Equity Loan: A lump-sum loan secured by your home.
· Cash-Out Refinance: Refinances your mortgage for a higher amount to access cash.
· Personal Loans: Unsecured loans with fixed rates, suitable for smaller projects.
· Credit Cards: Best for minor updates but typically have higher interest rates.

Consider these factors, and let Figure simplify the decision-making process:
1. Project Scope: For larger renovations, Figure’s HELOC offers a flexible credit line to match your timeline and costs.
2. Interest Rates: Figure’s HELOC rates are competitive and often lower than personal loans or credit cards.
3. Repayment Flexibility: With Figure, you can draw funds as needed and only pay interest on what you borrow.
4. Home Equity: Figure lets you borrow up to $750,000, depending on your equity, and their platform can quickly calculate your eligibility.
5. Application Speed: Skip the lengthy paperwork—Figure’s 100% digital process gets you funded fast, so you can focus on your project.

Figure’s HELOC is designed for flexibility and speed:
· Apply in just 5 minutes using their fully digital platform.
· Access funds in as few as 5 days.
· Redraw funds when needed during your draw period, perfect for multi-phase renovations.

If you use your funds for home improvement, interest payments from a home equity loan or home equity line of credit might be tax deductible when filing your annual taxes. Be sure to consult a tax advisor regarding the deductibility of interest and charges.