Citizen Bank’s low-cost mortgage options include the HomeReady program, down payment assistance program, destination home mortgage, FHA loans, conventional 97 loans and veterans home loans. The lender permits the borrowers to put in a 3% down payment for its HomeReady program. However, it doesn’t specify the minimum credit score requirement for its mortgage products.
MoneyGeek’s Take
Citizens Bank Mortgage Review
Updated: November 6, 2024
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At a Glance: Citizens Bank Mortgages
- Citizens Bank
- 3% for conventional loans 3.5% for FHA loans Up to 20% for jumbo loans Minimum Down Payment
- Fixed-rate loans, adjustable-rate mortgage loans, FHA loans, veterans home loans, jumbo loans, refinancing and new construction loans.Loan Products Offered
- All 50 U.S states and Washington, D.C.States of Operation
- Yes Online Application
Founded in 1871, Citizens Bank has been serving its customers for more than 150 years. Its headquarters are located in Providence, Rhode Island. While it doesn’t have the best reputation according to the Better Business Bureau (BBB), the bank also offers personal loans, credit cards and other financial products to its customers in addition to mortgages.
It offers many different mortgage products, including FHA loans, fixed-rate loans, adjustable-rate loans, jumbo loans, veterans' home loans, new construction loans and refinancing. Some of its low-cost mortgage products include the HomeReady program, down payment assistance program, destination home mortgage and conventional 97 loans. The Citizen bank also provides a Home Equity Line of Credit (HELOC).
The bank permits the borrowers to put a 3% down payment for conventional loans, a 3.5% down payment for an FHA loan and up to 20% for jumbo loans. However, it doesn’t specify the minimum credit score requirement for its mortgage products. If you want to know whether you’ll be eligible for the Citizen bank’s mortgage loans, it’s best to get in touch with them directly.
The application process for Citizen bank’s mortgage loans is easy. Borrowers can submit an online application and attach their documents online. Once the bank approves your application, the closing process may take a few weeks.
Pros
- Offers online applications
- Provides a wide range of low-cost mortgage options
- Available in all U.S. states.
Cons
- Does not offer USDA loans
- Loan types are not easily identifiable on the website
- Doesn’t share minimum credit score needed
Founded in 1871, Citizens Bank has been serving its customers for more than 150 years. Its headquarters are located in Providence, Rhode Island. While it doesn’t have the best reputation according to the Better Business Bureau (BBB), the bank also offers personal loans, credit cards and other financial products to its customers in addition to mortgages.
It offers many different mortgage products, including FHA loans, fixed-rate loans, adjustable-rate loans, jumbo loans, veterans' home loans, new construction loans and refinancing. Some of its low-cost mortgage products include the HomeReady program, down payment assistance program, destination home mortgage and conventional 97 loans. The Citizen bank also provides a Home Equity Line of Credit (HELOC).
The bank permits the borrowers to put a 3% down payment for conventional loans, a 3.5% down payment for an FHA loan and up to 20% for jumbo loans. However, it doesn’t specify the minimum credit score requirement for its mortgage products. If you want to know whether you’ll be eligible for the Citizen bank’s mortgage loans, it’s best to get in touch with them directly.
The application process for Citizen bank’s mortgage loans is easy. Borrowers can submit an online application and attach their documents online. Once the bank approves your application, the closing process may take a few weeks.
Citizens Bank Mortgage Loan Types, Details and Requirements
Every lender charges different rates and has different loan requirements. MoneyGeek’s Citizens bank mortgage loan review breaks down its fees, loan types, requirements and other important details to help you understand if it could be the best fit for your needs.
Mortgage Types Offered
Citizens Bank offers the following mortgage options:
- Fixed-rate loans
- Adjustable-rate loans
- FHA loans
- HomeReady loans
- Jumbo loans
- Construction loans
- Refinancing
- Veterans home loans
- Home Equity Line of Credit (HELOC)
Keep in mind that this lender does not offer USDA loans.
Mortgage Rates
Citizens Bank openly advertises mortgage rates on its website, including the 30-year fixed-rate, 15-year fixed-rate and seven-year/six-month ARM. Since these rates change daily, it’s best to look at what rate they’re offering before applying for a loan. These rates include a 0.125% autopay and paperless discount.
Additional Fees
Citizens Bank doesn’t display any fees on its website. Some of the fees that lenders usually charge include origination fees, prepayment penalties, closing costs and more. You’ll need to contact Citizens Bank directly to learn more about their additional fees.
Minimum Borrowing Requirements
Citizens Bank doesn’t specify the minimum credit score requirement for its mortgage products. It’s best to contact a representative to see if you’re eligible for a mortgage loan from this lender.
For conventional loans, the bank allows borrowers to put a minimum down payment of 3%, while the minimum down payment for FHA loans is 3.5% and up to 20% for jumbo loans.
Citizens Bank Mortgage Application Requirements
Citizens Bank will require you to submit a few documents to verify your identity, income and other details. Before applying for a mortgage loan with the Citizens Bank, it’s best to have the following documents and information with you:
- 1
Social Security number
- 2
Tax Returns
- 3
W-2 statements
- 4
Bank statements from the past few months
- 5
Recent pay stubs
- 6
Employment details
- 7
Debt information
Is Citizens Bank Right for You?
MoneyGeek explains which type of borrower would and wouldn’t benefit from Citizens Bank’s mortgage products.
Who Citizens Bank Is Perfect for
If you have a checking or savings account with Citizens Bank, getting a mortgage with the company could be very beneficial since you might be eligible for rate discounts. In turn, this may help you save a lot of money in the long run.
The Citizens Bank mortgage application process can be completed online, making it the ideal option for borrowers looking for an easy online experience. It could also be the best option for people who can’t afford to put large down payments because the bank accepts down payments as low as 3%.
Who Should Not Choose Citizens Bank
Since the Citizens bank doesn’t offer USDA loans, people looking to buy a home in an eligible rural area might have to look elsewhere. Also, if you want to have a clear idea of how much your loan would cost you, the Citizens Bank won’t be a good option as it doesn’t display the rates and fees on its website.
Citizens Bank’s mortgage products do not come with a discount for customers who don’t have a checking or saving account with the bank. So, if you aren’t already a customer who has these products, it may not be the best fit for you.
How to Apply for a Citizens Bank Mortgage Loan
Knowing what steps to take when applying for a Citizens Bank mortgage loan can save you from confusion and make the process easier for you.
- 1
Prequalify
It’s easy to prequalify with Citizens Bank as it offers online prequalification to borrowers. You need to enter personal information and answer some questions to get the process started.
- 2
Fill Out the Application
After prequalification, you can proceed with filling out the online application. At this stage, the Citizens Bank might ask you to submit the following documents and information:
- Social Security Number
- Tax Returns
- W-2 statements
- Bank statements of the past few months.
- Recent pay stubs
- Employment details
- Debt information
- 3
Wait for Approval
Once you have applied, Citizens Bank will verify some important details, including your credit score, income details, employment history and more. You’ll typically get approval in a few business days.
- 4
Review Loan Agreement
After Citizens Bank approves your loan, they’ll send you a loan agreement. Since the bank doesn’t display its fees on the website, it’s important to review this loan agreement and consider any extra fees they might charge.
- 5
Sign Loan Agreement
Once you’ve read the loan agreement and are satisfied with it, you can sign it online. If you're confused about the agreement, you can reach out to Citizens Bank’s representatives.
- 6
Closing
Citizens Bank will send you a Closing Disclosure to finalize your loan. It’s best to review this document. At this stage, you might have to pay closing fees, which are the fees you pay when you obtain a loan.
- 7
Make Payments
You can start making payments once your loan is finalized. Citizens Bank allows you to make online payments for your mortgage loan.
What to Do if You Are Rejected by Citizens Bank
Citizens Bank might not approve your mortgage loan. However, this is not cause for concern if the bank rejects your loan application since a rejection can happen due to many reasons. This includes a low credit score, high debt-to-income ratio, incomplete application or unstable employment.
The best way to proceed in this situation is to ask Citizens Bank’s representatives about the factors that caused your application to be denied. Once they let you know these factors, you can work on improving them and then re-apply. For instance, if the bank rejected your loan due to missing documents, you can attach them and apply again.
While you may want to apply for a loan with a different lender, it won’t be beneficial as you’re less likely to get approval without taking care of the factor that caused the denial in the first place.
You can also reach out to your bank, a financial advisor or a loan officer if you want more information.
Frequently Asked Questions About Mortgages From Citizens Bank
MoneyGeek researched and analyzed the following frequently asked questions about Citizens Bank’s mortgage loans to help you understand its terms and other important details.
What types of properties are eligible for Citizens Bank mortgage loans?
Citizens Bank allows mortgage loans for single-family homes, condominiums, townhouses, two to four-unit properties and housing cooperatives.
Who can apply for a Citizens Bank mortgage?
Anyone who satisfies Citizens Bank’s minimum credit score and other qualification requirements can apply for a mortgage loan.
What types of mortgage loans does Citizens Bank offer?
Citizens Bank offers several types of loans, including fixed-rate loans, adjustable-rate mortgage loans, jumbo loans, refinancing, new construction loans and more.
Is there a borrowing limit for Citizens Bank mortgages?
For a conforming loan, Citizen Bank’s borrowing limit is $510,400. However, it may change depending on the market. Anything higher than that is considered a jumbo loan.
What is the minimum down payment Citizens Bank will accept?
Citizens Bank will accept a minimum down payment of 3% for conventional loans, 3.5% for FHA loans and up to 20% for jumbo loans.
Does Citizens Bank require private mortgage insurance (PMI)?
Yes, Citizens Bank requires Private Mortgage Insurance (PMI) if you have less than 20% equity in your home.
Does Citizens Bank require a property appraisal?
Yes, Citizens Bank requires a property appraisal as part of the loan application process.
About Christopher Boston
Christopher (Croix) Boston was the Head of Loans content at MoneyGeek, with over five years of experience researching higher education, mortgage and personal loans.
Boston has a bachelor's degree from the Seattle Pacific University. They pride themselves in using their skills and experience to create quality content that helps people save and spend efficiently.
sources
- Citizens Bank. "Mortgage Affordability." Accessed November 6, 2024.
- Citizens Bank. "Mortgage Resources." Accessed November 6, 2024.
- Citizens Bank. "Mortgage Terms to Know." Accessed November 6, 2024.
- Citizens Bank. "Our Company." Accessed November 6, 2024.