In October, Figure Technologies entered the home equity space and launched its first-ever product, Figure Home Equity, a hybrid between a traditional home equity loan and a HELOC that allows homeowners to borrow from their home equity.
Now, the company, which is led by former SoFi Founder and CEO Mike Cagney, is back with a new product, one it is billing as an alternative to reverse mortgages.
Called the Figure Home Advantage, the new product is a lease-back solution that allows homeowners to convert their home equity into cash, freeing them from the burden of property taxes, repairs and maintenance, the company said in a press release.
“With rising interest rates, cash-out refinancing is an increasingly painful way to meet cash flow needs,” Figure Chief Marketing Officer Wendy Harrington said in a statement. “Yet for homeowners nearing or already in retirement, home equity may be the most important source of money they have to support retirement.”
The company explained that Figure Home Advantage has no age restriction, permitting all homeowners to leverage their equity.
In order to make this possible, Figure said it purchases the homes from sellers, allowing them to renew their lease annually and giving them the power to decide how long they stay in the home.
Harrington said that by unlocking hard-earned equity with Figure Home Advantage, homeowners can better their retirement with additional funds and less stress.
The product is now available in 12 markets, including Atlanta, Cincinnati, Cleveland, Dallas, Houston, Jacksonville, Philadelphia, Phoenix, Pittsburgh, Reno, San Antonio and Tampa.
The company said it plans to a total of 40 markets across the country by the end of 2019.