The “rate-lock effect” from high interest rates has prevented many New York homeowners from selling their homes or refinancing, leaving an average of over $300,000 in equity locked in their homes.
Nearly 50% of homeowners across the U.S. who gain access to their equity are putting that money back into their homes for much-needed upgrades and renovations—many of which will boost the home’s value.
Enter the HELOC: a quick, streamlined solution that allows NY homeowners to access liquidity and invest in their properties without touching their current mortgage. Lenders can help their customers access up to $400,0003navigates to numbered disclaimer in NY home equity using Figure Lending LLC’s HELOC.
Start offering your customers a 100% online HELOC product within weeks.
How NY home equity drives high-value renovations
When tapped, home equity can be used for any purpose of the homeowner’s choosing.
In a market where many are locked into their homes due to high home prices, low interest rates, inflation, and other factors, there is an increasing desire to make improvements that will boost quality of life—while also increasing property value.
According to Figure Lending LLC’s data:
43% of Connecticut and New Jersey customers say they’re using their HELOC for home improvement
The average loan size is $87,756 in New Jersey and $76,917 in Connecticut
Renovations are a strategic use of these funds, particularly in New York’s historic neighborhoods where homeowners are eager for mindful remodels and updates that add both immediate and long-term value yet also help them preserve the home’s unique character.
Popular renovation types to maximize home value
From kitchen remodels to backyard overhauls, homeowners are using HELOCs for a range of home improvement purposes.
Let’s look at some of the most popular upgrades and renovations to increase New York home values.
Historic property restorations
In historic neighborhoods, homeowners often prioritize preserving the architecture and character of their properties, including:
Facade restorations
Brickwork repair
Vintage window restorations
Strategic renovations with the help of a HELOC can balance both modernization and historic appeal, which add to the home’s value.
Energy-efficient upgrades
Rising energy costs and heightened environmental awareness have made energy-efficient upgrades popular in NYC and across the state, such as:
Solar panel installation
Energy-efficient windows
Insulation upgrades
Homes with energy-efficient features can be appealing to buyers due to the potential long-term savings of these types of upgrades.
Aging-in-place modifications
According to an AARP survey, 77% of adults 50 and older want to remain in their homes long-term.
HELOCs can provide the funding for renovations that improve safety and accessibility as homeowners age, such as walk-in showers and widened doorways.
Smart home technology updates
Smart lighting, thermostats, security systems, and home automation features improve a home’s comfort and marketability. HELOCs can help homeowners easily finance these modern upgrades.
Multi-generational living spaces
Accessory dwelling units (ADUs) are becoming increasingly common in New York as multi-generational living becomes the norm in the current market.
Using a HELOC, homeowners can invest in adding ADUs or convert existing spaces like basements and garages into separate living areas for family members or rental income.
NY home equity scenario: Multi-generational living upgrades
Imagine a homeowner in Queens who wants to adapt their property to accommodate their aging parents rather than move to a new property in New York’s current real estate market.
Using Figure Lending LLC’s HELOC, they access $120,000 of their home equity to fund the following targeted renovations:
Garage conversion: They convert their garage into a separate living area with a bedroom, bathroom, and compact kitchenette.
Accessibility upgrades: The renovations include safety-focused additions like non-slip flooring, a walk-in shower with grab bars, and widened doorways.
Future use potential: In the future, this private suite could be rented out for additional income or repurposed as a home office or guest suite.
Our streamlined, 100% online application makes securing funds easy, allowing the homeowner to begin renovations promptly. They are provided with a practical financing option to make high-value, family-centered renovations that support long-term property goals.
How lenders benefit from partnering with Figure Lending LLC
NY homeowners are increasingly seeking cost-efficient solutions to access liquidity, and refinancing is no longer a feasible option for most due to higher interest rates.
Figure Lending LLC’s HELOC creates a better customer experience from start to finish, leveraging AI technology to streamline the process. This makes our HELOC easier to close so that you can process more loans efficiently, rather than passing HELOCs to a bank or someone else.
Lenders can access the following benefits:
Earn commission quicker
Increase engagement with your customers
Preserve your customer relationships
Digital HELOC branded in your company’s name or easily brokered
Advanced AI technology that reduces manual work and lessens bias while increasing speed across the loan origination process, eliminating over $8 million in unnecessary costs
You can accomplish all of this while offering your customers an experience worthy of the 21st century, including:
100% online application for homeowners
Personalized fixed rate1navigates to numbered disclaimer in as fast as 5 minutes2navigates to numbered disclaimer
HELOCs range from $15,000 to $400,0003navigates to numbered disclaimer
“We’re proud that we’ve met New York’s high regulatory standards, and that we now have full coverage across the New York Tri-State area and greater East Coast region,” said Anthony Stratis, VP of Lending Partnerships. “We’ve heard from our customers and licensed partners that they’re eager to use Figure more often for more of their lending needs.”
Figure Lending LLC’s HELOC is now available across the entire East Coast, covering 49 states and Washington D.C.
Download our in-depth lender playbook to help your customers with home improvements. See how to connect with home improvement contractors and turn their prospects into your new HELOC customers.
Intellidebt: A better experience for lenders and homeowners
Before your customers begin renovation projects, they may need to consolidate high-interest debts to put themselves in a better financial position. Intellidebt helps your customers easily pay off unsecured debts, such as credit cards and personal loans, directly through our platform.
According to our data, 37% of customers use home equity specifically for debt consolidation, making it one of the top use cases of our HELOC.
During the application process, the customer can choose which debts they want repaid. Once the loan funds, the selected debts are paid off, and any remaining balance is deposited into their bank account.
The average Figure Lending LLC customer’s HELOC application amount was nearly $75,000, with approximately 30% of the funding applied to their high-interest debts using Intellidebt.
On average, users experienced:
Monthly debt payments reduced by an average of $500-$600
A 29 point increase in their FICO scores
Lowered APRs on credit cards and personal loans
Figure Lending LLC’s Direct Debt Payoff feature is just another way we aim to make the HELOC process as streamlined and efficient as possible.
Watch our Intellidebt webinar to learn how you can transform your customers’ finances.
Help your customers unlock renovations to increase New York home values
Your customers need a HELOC that is as unique and flexible as their homeownership goals.
Join Figure Lending LLC in helping New Yorkers unlock their home equity to make smart renovations.
