The feature, which is embedded into lender partners' systems, gives borrowers the ability to take out a down payment on a house, if they so desire. Those who already own a house, but have yet to build up equity, can use it to apply for a cash-out refinance, the company said.

The offering is geared mainly towards first-time home buyers because they often "need additional funds to make their down payment," the company said. For borrowers, the piggyback HELOC allows a 10% down payment and doesn't require mortgage insurance.

After the second lien loan is originated, Figure, which is the nation's largest non-bank provider of HELOCs, handles the sale of said loan to capital markets.

The product came to fruition due to requests from lenders, the company said.

"Our growing number of lending partners made it clear they want to embed our new piggyback to better meet their customers' needs," said Michael Tannenbuam, CEO of Figure Technology Solutions.

Mortgage lenders including The Loan Store, Union Home Mortgage, Guaranteed Rate, Movement Mortgage and Fairway Independent Mortgage partner with Figure to offer HELOC products to their borrowers.

Bill Cosgrove, CEO of Union Home Mortgage, noted in a statement the piggyback feature gives a wider array of options to borrowers' "full financial needs amidst current market conditions."

"We are building a great partnership between UHM and Figure, ensuring speed and ease to help more Americans achieve their dream of homeownership," Cosgrove added.

The rollout of the piggyback offering coincides with the company's expansion nationwide. In October, Figure expanded into New York and Delaware, bringing the availability of its products to 49 states and Washington D.C, it said.

Apart from expanding its presence, Figure Technology Solutions, an umbrella company for Figure Lending LLC, is also looking to go public.

In March it "confidentially submitted a draft registration statement on Form S-1 with the U.S. Securities and Exchange Commission relating to the proposed initial public offering of its equity securities." This form is required for registering companies that want to be listed on a national exchange.

Figure has concentrated its efforts on growing market share in the home equity line of credit space. Last year, it launched a HELOC wholesale loan production platform. The company also entered into partnerships with independent mortgage bankers to provide a private-label HELOC product.

To date, the company's products have been used to unlock over $12 billion in equity, a press release said.