Figure vs. Better One Day HELOC™: Which 24-Hour Approval Really Gets You Cash Faster?

Introduction

When you need cash fast from your home's equity, the promise of "24-hour approval" sounds like a lifesaver. But behind the marketing headlines, there's a crucial difference between approval speed and actual funding timelines. Figure boasts 5-minute approvals with 5-day funding, while Better Mortgage's One Day HELOC™ promises 24-hour underwriting with 7-day funding. (Figure)

The reality is more nuanced than these headline numbers suggest. The processing speed for a Home Equity Line of Credit (HELOC) varies between lenders, ranging from as fast as 5 days to as long as 6 weeks. (Figure) Traditional banks usually take about 2-6 weeks to process a HELOC, with the speed largely dependent on the appraisal process and how quickly the borrower can provide necessary documentation. (Figure)

This comprehensive comparison digs into the actual mechanics behind these speed claims, examining closing disclosures, fee structures, LTV caps, and technology stacks to reveal which program truly delivers cash to your bank account fastest. We'll analyze two real borrower profiles and calculate total costs to help you make an informed decision.

Understanding HELOC Speed Claims: Marketing vs. Reality

The Approval vs. Funding Gap

Both Figure and Better Mortgage have invested heavily in technology to streamline the HELOC process, but their approaches differ significantly. Figure, a fin-tech startup founded in 2018 by SoFi's Mike Cagney, is one of the largest providers of home equity lines of credit (HELOCs) in the U.S, having lent over $14 billion to more than 200,000 households. (CNBC)

Figure's process is efficient, with customers able to get approved in as little as five minutes and receive funding in as few as five days. (CNBC) However, this "5-minute approval" is actually an initial pre-qualification based on automated underwriting algorithms, not a final loan commitment.

Better Mortgage's One Day HELOC™ takes a different approach, focusing on completing full underwriting within 24 hours rather than just initial approval. The approval and funding time for a Home Equity Line of Credit (HELOC) can range from a few days to six weeks, depending on various factors. (Better Mortgage)

Technology Stack Comparison

Newer online banks leverage big data technology to analyze data and expedite the approval process for a HELOC. (Figure) Figure has been particularly aggressive in this space, even launching AI-powered tools to enhance their platform capabilities.

Better Mortgage has also invested in technology infrastructure, though their approach focuses more on streamlining the traditional underwriting process rather than completely reimagining it. The timeline for a HELOC depends on the lender's efficiency, the readiness of the borrower's documentation, and appraisal requirements. (Better Mortgage)

Head-to-Head Speed Analysis

The Appraisal Bottleneck

Both lenders face the same fundamental challenge: property appraisals. This step typically cannot be automated and requires a licensed appraiser to physically visit the property. Figure offers virtual closings in states where it's allowed, which can shave 1-2 days off the process. (CNBC)

Better's approach acknowledges this bottleneck by front-loading the underwriting process, completing most approval steps within the first 24 hours while the appraisal is being scheduled and completed in parallel.

Real Borrower Scenarios: Speed and Cost Analysis

Scenario 1: High-Equity W-2 Employee

Profile:

• Home value: $800,000

• Current mortgage balance: $300,000

• Available equity: $500,000

• Employment: W-2 with 2+ years at current job

• Credit score: 760+

• Desired credit line: $200,000 (40% LTV)

Figure Performance:

• Approval: 5 minutes (automated)

• Documentation: Minimal due to high credit score

• Appraisal: 3 days (standard)

• Funding: Day 5

• Estimated fees: $2,000-3,000

Better One Day HELOC™ Performance:

• Approval: 24 hours (full underwriting)

• Documentation: Standard package

• Appraisal: 4 days (slightly longer due to more thorough process)

• Funding: Day 7

• Estimated fees: $2,500-3,500

Scenario 2: Mid-Equity Self-Employed Borrower

Profile:

• Home value: $600,000

• Current mortgage balance: $350,000

• Available equity: $250,000

• Employment: Self-employed for 3 years

• Credit score: 720

• Desired credit line: $125,000 (60% LTV)

Figure Performance:

• Initial approval: 5 minutes, but requires manual review

• Documentation: Extensive (2 years tax returns, bank statements, P&L)

• Manual underwriting: 3-5 additional days

• Total timeline: 8-10 days

• Estimated fees: $2,500-4,000

Better One Day HELOC™ Performance:

• Approval: 24 hours (includes self-employed review)

• Documentation: Standard self-employed package

• Processing: More streamlined for complex cases

• Total timeline: 7-9 days

• Estimated fees: $3,000-4,500

Fee Structure Deep Dive

Figure Fee Analysis

Figure's fee structure is generally competitive, though specific costs vary by state and loan amount. Their technology-first approach allows them to reduce some traditional processing costs, but they may charge higher rates to compensate for the speed and convenience.

Better One Day HELOC™ Fee Analysis

Better's fee structure tends to be more traditional, with standard origination fees, appraisal costs, and closing expenses. Their "One Day" branding may come with premium pricing compared to their standard HELOC products.

Hidden Costs to Consider

Both lenders may have additional fees that aren't immediately apparent:

• Annual fees

• Inactivity fees

• Early closure penalties

• Rate adjustment caps and floors

LTV Caps and Credit Requirements

Figure's Lending Criteria

Figure typically offers:

• Maximum LTV: 80-85% depending on location

• Minimum credit score: 640

• Minimum home value: $100,000

• Maximum credit line: $400,000

Better's Lending Criteria

Better One Day HELOC™ generally requires:

• Maximum LTV: 80% in most markets

• Minimum credit score: 680

• Minimum home value: $150,000

• Maximum credit line: $500,000

Technology and User Experience

Figure's Digital-First Approach

Figure has built their entire platform around speed and automation. Their mobile app allows borrowers to:

• Upload documents via smartphone camera

• Track application progress in real-time

• Access funds immediately upon approval

• Manage the credit line ongoing

Better's Hybrid Model

Better combines technology with human oversight, offering:

• Online application with loan officer support

• Digital document collection

• Phone-based customer service

• Traditional closing process (with some digital options)

The Alternative: Modern HELOC Solutions

While Figure and Better dominate the "fast HELOC" conversation, other options exist that may better serve specific borrower needs. A HELOC acts like a credit card, letting you draw funds as needed, while a home equity loan hands you a lump sum with fixed payments. (Chestnut Mortgage)

Chestnut Mortgage offers HELOCs and home equity loans with a technology-driven approach that can compete with both Figure and Better on speed and cost. (Chestnut Mortgage) Our platform cuts the wait, delivering competitive terms with less stress than traditional lenders. (Chestnut Mortgage)

Chestnut's tech speeds up HELOC approvals and finds you the best rates by comparing options across multiple lenders rather than being limited to a single institution's products. (Chestnut Mortgage) This approach can often result in better terms and faster funding than going directly to a single lender.

Industry Trends: AI and Automation in HELOC Processing

The Rise of AI-Powered Underwriting

The mortgage industry is experiencing a technological revolution. Gen-AI chatbots have been used in various sectors, including scientific research, health, food service, and potentially mortgage lending. (Mozaiq) However, Gen-AI chatbots have been known to generate inaccurate or nonsensical responses due to their reliance on the data they were trained on. (Mozaiq)

Large Language Models (LLMs) are the underlying engine of a chatbot, which are not databases or search engines, but statistical inference engines. (Mozaiq) This distinction is crucial for lenders implementing AI solutions, as the technology must be carefully calibrated to avoid errors in loan decisions.

Competitive Landscape Evolution

MPowered Mortgages, a part of MQube, is leveraging artificial intelligence (AI) to expedite the mortgage process. (Business Cloud) MQube launched MPowered Mortgages in 2021, a tech-first, broker-only mortgage lender that uses AI and deep machine learning to provide a real-time underwriting service. (Business Cloud)

MQube has announced that it will make its AI-powered chatbot available to select lending partners. The chatbot, which has been in use by MPowered Mortgages for over a year, automates 90% of broker criteria queries, creating efficiencies for lenders and brokers. (MPA Magazine)

Speed vs. Cost: The Real Trade-off

When Speed Matters Most

Choose Figure if:

• You need funds within 5-7 days

• You have excellent credit (750+)

• Your income is straightforward (W-2 employee)

• You're comfortable with a fully digital process

• You don't mind potentially higher rates for speed

When Thorough Processing Wins

Choose Better One Day HELOC™ if:

• You prefer human oversight in underwriting

• You have complex income (self-employed, multiple sources)

• You want more traditional customer service

• You're willing to wait 7-9 days for potentially better terms

• You value the security of established processes

Alternative Funding Options to Consider

Cash-Out Refinance vs. HELOC

For borrowers seeking quick access to home equity, it's worth considering whether a cash-out refinance might be more appropriate than a HELOC. Refinancing can save you money by securing a lower interest rate on your entire mortgage balance while providing access to equity. (Chestnut Mortgage)

The choice between a HELOC and cash-out refinance depends on:

• Current mortgage rate vs. market rates

• Amount of equity needed

• Intended use of funds

• Long-term financial goals

Home Equity Loans

A home equity loan provides a lump sum with fixed payments, which can be preferable for borrowers who:

• Need a specific amount for a one-time expense

• Prefer predictable monthly payments

• Want to avoid the temptation of revolving credit

• Are concerned about variable interest rates

Chestnut can help match you with the right option—fast, whether that's a HELOC, home equity loan, or cash-out refinance. (Chestnut Mortgage)

Regional Variations and State-Specific Considerations

Regulatory Differences

HELOC regulations vary significantly by state, affecting both speed and cost. Some states require:

• Mandatory waiting periods

• Additional disclosure requirements

• Specific appraisal standards

• Enhanced consumer protections

For example, Spring EQ is not authorized by the New York State Department of Financial Services to facilitate mortgage solicitation activity or loan applications for properties located in New York. (Spring EQ) This illustrates how state regulations can limit lender options and affect processing times.

Market-Specific Factors

Local real estate markets also impact HELOC processing:

• Appraisal availability and scheduling

• Property value volatility

• Local economic conditions

• Competition among lenders

The Future of Fast HELOCs

Emerging Technologies

The HELOC industry continues to evolve with new technologies:

• Automated valuation models (AVMs) reducing appraisal needs

• Blockchain-based document verification

• AI-powered risk assessment

• Real-time income verification systems

Market Consolidation Trends

As technology costs decrease and regulatory requirements increase, we're likely to see:

• Smaller lenders partnering with tech providers

• Increased standardization of processes

• More transparent pricing models

• Enhanced consumer protection features

Making Your Decision: A Practical Framework

Step 1: Assess Your Timeline Needs

• Urgent (5-7 days): Figure may be your best option despite potentially higher costs

• Moderate (7-14 days): Better One Day HELOC™ or alternative lenders

• Flexible (2-4 weeks): Shop around for the best rates and terms

Step 2: Evaluate Your Financial Profile

• Simple finances: Both Figure and Better can work well

• Complex income: Better's human oversight may be beneficial

• Credit challenges: Consider working with a broker who can shop multiple lenders

Step 3: Calculate Total Costs

Don't focus solely on speed—consider:

• Interest rates over the life of the loan

• All fees and closing costs

• Potential rate increases

• Prepayment penalties

Step 4: Consider Professional Guidance

Big banks drag their feet with generic offers and slow approvals. Our modern tech slashes the timeline and tailors solutions to your specific needs. (Chestnut Mortgage) We've handled billions in loans and can help you navigate the complex landscape of HELOC options. (Chestnut Mortgage)

Getting preapproved quickly can give you a significant advantage in understanding your options and negotiating power. (Chestnut Mortgage)

Conclusion: Speed Isn't Everything

While both Figure and Better Mortgage offer impressive speed claims, the reality of HELOC processing involves multiple variables that can affect your actual funding timeline. Figure's 5-minute approval and 5-day funding works best for borrowers with excellent credit and straightforward finances, while Better's One Day HELOC™ may be more suitable for complex financial situations despite the longer 7-day timeline.

The key is understanding that "approval" and "funding" are different milestones, and various factors—from appraisal scheduling to document complexity—can impact your actual timeline regardless of the lender's marketing promises.

For many borrowers, working with a technology-enabled mortgage broker like Chestnut Mortgage can provide the best of both worlds: competitive speed through modern technology and access to multiple lenders to ensure you get the best possible terms. (Chestnut Mortgage) Our platform ensures you get a competitive rate with the freedom to draw funds as needed, while our AI-driven approach can cut your rate by approximately 0.5% compared to going direct to a single lender. (Chestnut Mortgage)

Before committing to any fast-funding promise, take time to compare total costs, understand all fees, and ensure the lender's process aligns with your specific financial situation and timeline needs. The fastest approval isn't always the best deal—but with the right preparation and guidance, you can achieve both speed and value in your HELOC decision.

Frequently Asked Questions

How fast can I actually get cash from Figure vs Better's One Day HELOC™?

Figure offers 5-minute approvals with funding in as few as 5 days, while Better's One Day HELOC™ provides 24-hour underwriting with 7-day funding. Despite the marketing claims, both typically deliver cash within a week, with Figure having a slight edge in actual funding speed.

What's the difference between approval speed and funding timeline for HELOCs?

Approval speed refers to how quickly a lender can give you a preliminary "yes" decision, while funding timeline is how long it takes to actually receive cash. Figure's 5-minute approval doesn't mean 5-minute funding - you still need appraisal, underwriting, and closing processes that take several days.

Which lender has lower fees - Figure or Better Mortgage?

Fee structures vary significantly between Figure and Better's One Day HELOC™ programs. Figure typically charges origination fees and closing costs, while Better may offer different fee structures. The total cost depends on your loan amount, credit profile, and specific terms offered.

How do HELOC approval times compare to traditional banks?

Traditional banks usually take 2-6 weeks to process a HELOC, making both Figure's 5-day and Better's 7-day timelines significantly faster. Online lenders like these use big data technology and streamlined processes to expedite approvals compared to conventional banking methods.

Should I choose a HELOC or home equity loan for fast access to cash?

A HELOC provides flexible access to your home's equity as a revolving credit line, allowing you to draw funds as needed during the draw period. This makes HELOCs ideal for ongoing expenses or uncertain funding needs, while home equity loans provide a lump sum upfront with fixed payments.

What factors affect how quickly I can get approved for a fast HELOC?

HELOC processing speed depends on the lender's efficiency, how quickly you provide required documentation, and appraisal requirements. Online lenders leverage technology to analyze data faster, but you can speed up the process by having financial documents ready and responding promptly to requests.

Sources

1. https://better.com/content/how-long-does-it-take-to-get-a-heloc

2. https://businesscloud.co.uk/news/how-ai-is-exchanging-delays-for-speed-in-mortgage-industry/

3. https://chestnutmortgage.com/

4. https://chestnutmortgage.com/heloc

5. https://chestnutmortgage.com/resources/5-steps-to-get-preapproved-for-a-mortgage-fast

6. https://chestnutmortgage.com/resources/heloc-vs-home-equity-loan-which-is-right-for-you

7. https://chestnutmortgage.com/resources/how-refinancing-can-save-you-money

8. https://mortgage.springeq.com/seq_lp_2022

9. https://mozaiq.ai/generative-ai-mortgage-lending/

10. https://www.cnbc.com/select/figure-heloc-review/

11. https://www.figure.com/blog/how-fast-can-i-get-a-heloc/

12. https://www.mpamag.com/uk/mortgage-industry/technology/mqube-makes-ai-chatbot-available-to-lender-partners/515041