Key facts
- Homeowners aged 40-60, the 'sandwich generation,' have the highest average monthly debt obligations ($5,350) among age groups.
- 48% of sandwich-generation HELOC customers use home equity to pay down debt, more than other borrowers.
- Sandwich-generation applicants have an average FICO score of 745 and a debt-to-income ratio of 38%.
- Average home equity for this group is $320,000, exceeding the national average.
- A majority of sandwich-generation HELOC applicants report incomes above $100,000.
- Figure's technology platform aims to streamline HELOC origination, reducing costs and approval times.
Homeowners in the 'sandwich generation,' typically aged 40 to 60, carry the highest monthly debt obligations of any age group, yet also possess strong credit profiles and substantial home equity, according to an analysis by Figure. The company's review of over 500,000 home equity line of credit (HELOC) applications in 2024 and 2025 found that these midlife homeowners have average monthly debt obligations of $5,350, significantly higher than younger or older cohorts.
Figure CEO Michael Tannenbaum noted that members of this generation hold more credit card debt than housing debt. He highlighted that over 40% of Figure's HELOC borrowers fall into this demographic, which is typically underserved by housing-related financial services that often skew older. These individuals often manage multiple debt payments, including mortgages, credit cards, personal loans, and medical bills, alongside significant non-debt expenses like college tuition, home maintenance, and health insurance.
Despite their higher debt levels, sandwich-generation homeowners in Figure's dataset exhibit strong credit characteristics, with an average FICO score of 745 and a debt-to-income ratio of 38%. Their estimated home equity averages $320,000, surpassing the national average. Income levels are also elevated, with a majority of applicants reporting incomes above $100,000.
Figure frames these homeowners as having properties that serve as financial and physical hubs for multiple generations, often supporting children and aging parents. The company argues that the primary challenge for many is liquidity, as their net worth is often tied up in home equity, which can be difficult to access efficiently in a higher-rate environment. This demand for equity extraction tools like HELOCs is expected to continue, especially as higher mortgage rates encourage homeowners to tap equity through second-lien products rather than full refinances.
Figure has partnered with companies like Longbridge Financial to streamline the HELOC process, aiming to reduce origination friction and costs. The company relies on industry partners for nearly 80% of its business, selling originated loans to a capital marketplace on its technology platform.