New HELOC option offer flexibility in down payments and refinances
Figure Technology Solutions has launched a Piggyback home equity line of credit (HELOC), developed to assist both first-time and existing homeowners.
In response to growing demand from lender partners, the new loan product allows homebuyers to reduce upfront costs while bypassing mortgage insurance, and it offers homeowners a way to tap into cash from their equity without refinancing their entire mortgage.
Piggyback mortgages, which allow buyers to take out a second loan to reduce their initial down payment, have gained renewed interest as buyers look for ways to sidestep high costs in today’s housing market. While these loans were common before the 2008 housing crash, they were often linked to adjustable rates and risky borrowing practices.
Today’s piggyback loans are generally more controlled, offering borrowers a safer way to cover down payments without taking on mortgage insurance. According to recent data from CoreLogic, the share of FHA loans with a second lien increased from 10.8% in June 2022 to 18% in June 2024.
“Offering a piggyback is in direct response to partner feedback,” said Figure chief executive officer Michael Tannenbaum. “Our growing number of lending partners made it clear they want to embed our new piggyback to better meet their customers’ needs.”
With Figure’s Piggyback HELOC, homebuyers can secure a smaller first mortgage by adding a second lien for extra funding, helping them avoid higher down payments or jumbo loan rates. The program also targets homeowners with limited equity or recently originated mortgages, providing cash access even if they don’t meet the typical 80% combined loan-to-value (CLTV) cap for a traditional refinance.
The HELOC Piggyback HELOC is now available through Figure’s partner network of lenders, banks, credit unions, and other financial institutions.
“With Figure’s piggyback rates and quick approval, fixed-rate HELOC, we have more options to better serve our clients' full financial needs amidst current market conditions,” Bill Cosgrove, CEO of Union Home Mortgage, said in a Press release. “We are building a great partnership between UHM and Figure, ensuring speed and ease to help more Americans achieve their dream of homeownership.”
The launch is part of Figure’s broader HELOC expansion, which recently included new markets in New York and Delaware, bringing Figure’s reach to 49 states and Washington, D.C.
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