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In 2025, real estate investors have more choices than ever when it comes to tapping their home equity. With rising property values and a tightening credit market, home equity lines of credit (HELOCs) have become an increasingly popular way for investors to fund new deals, renovations, or cash flow management. However, not all HELOCs are created equal. Should you go digital, or stick with a traditional bank? Here’s a comprehensive comparison to help you choose the best option for your investment strategy.
HELOCs provide a flexible, revolving line of credit secured by your property’s equity. Unlike traditional cash-out refinances, they allow you to access only the amount you need, when you need it, and pay interest only on the drawn amount. This makes them a smart choice for real estate investors looking to move quickly on new opportunities without over-leveraging their properties.
For a deeper dive into why HELOCs are ideal for scaling a portfolio, check out our guide on How to Use a HELOC to Scale Your Rental Portfolio Fast.
Digital HELOCs, like those offered by Figure, have gained significant traction among investors seeking speed, simplicity, and transparency. Unlike banks, these platforms leverage technology to streamline the application, approval, and funding processes, often reducing the time to cash by weeks.
Digital HELOCs are especially useful for investors who prioritize speed and scalability. For more on this approach, explore our Complete Guide to Investor HELOCs.
While digital HELOCs are gaining popularity, traditional banks still offer compelling advantages. These include potentially lower interest rates, longer draw periods, and the stability of a relationship with a long-established financial institution.
The choice between a digital HELOC and a traditional bank comes down to your specific needs as an investor. Here are a few key considerations:
Feature | Digital HELOC | Bank HELOC |
Speed | 5-10 days | 30+ days |
Documentation | Minimal | Extensive |
Flexibility | High | Moderate |
Interest Rates | Mid to High | Low to Mid |
Scalability | High | Moderate |
Customer Service | Online, 24/7 | In-Person, Limited |
For speed, scalability, and convenience, digital HELOCs often come out ahead. However, if you prioritize lower rates and value long-standing financial relationships, a traditional bank might still be your best bet.
Ready to leverage your home equity for your next investment? Get started with Figure today and see why thousands of investors are choosing digital HELOCs for faster, more flexible funding.
Yes, most digital HELOCs are issued by regulated financial institutions and use secure technology to protect your information.
Yes, some digital HELOC providers specialize in investment property financing, making it a great option for real estate investors.
Typically within 5-10 days, depending on the lender and your property’s equity position.
Take the first step toward smarter real estate investing. Get started with Figure and unlock your property’s potential today!
Our advise is based on experience in the mortgage industry and we are dedicated to helping you achieve your goal of owning a home. We may receive compensation from partner banks when you view mortgage rates listed on our website.