Fintech company Figure Technologies has launched its first product, Figure Home Equity Loan PLUS, designed to allow consumers to borrow against the equity in their home quickly.
San Francisco-based Figure was co-founded by Mike Cagney, co-founder and former CEO of SoFi.
With Figure Home Equity Loan PLUS, the company says it can deliver approval in as little as five minutes and funding in as little as five days in a process done completely online, doing away with the paperwork-intensive, 45-day process most lenders require.
The company’s estimate of funding times is based on a typical customer experience for properties located in counties that permit e-recording. Actual times may vary.
"We're transforming the entire customer experience by creating a faster, simpler, and more convenient way for homeowners to access the equity in their homes," Figure Chief Marketing Officer Wendy Harrington said. "The status quo was far from ideal, so we reimagined it and applied technology to the problem. The result: approval in five minutes, funding in five days, all online."
Figure says its offering is fast and convenient, offers lower rates and better options, allows easy access to funds, and has no hidden fees.
To apply for a loan, borrowers only need to fill out a short online form, with Figure’s eNotary helping finalize the details. Homeowners can borrow from $15,000 to $100,000 at annual percentage rates that start as low as 5.99% with loan terms of five, seven, 10, and 15 years.
Figure disburses the full amount as soon as the loan is final — often in as few as five days. Additionally, the company doesn't charge appraisal fees, title fees, late fees, or pre-payment penalties. Instead, it just charges one origination fee, which ranges from 1% to 3% of the initial draw.
Figure Home Equity Loan PLUS is available in 25 states, with more states to come. The company said it is planning to launch its second product, a sell and leaseback alternative to reverse mortgages for retirees and empty nesters.