At a Glance

Citizens Bank is a major American bank and mortgage lender operating in all 50 states. It offers a selection of purchase, refinancing, and home equity products, as well as a range of down payment assistance programs. Citizens has branches in 11 states in the Northeast and serves borrowers in all states through its online lending platform.

How it works

To apply for a mortgage or home equity product from Citizens Bank, begin by filling out an online application form, contacting the bank by phone, getting in touch directly with a loan officer, or walking into a branch (in Connecticut, Delaware, Maine, Massachusetts, Michigan, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, or Vermont).

First, create an account and tell Citizens Bank about yourself (including name and address), the type of home you’re looking for (e.g. loan amount, primary or secondary residence, area), and your income and employment situation.

Next, Citizens Bank will show you personalized pre-approved rates. If you like what you see, you can begin uploading documents for approval through the online portal.

Finally, if you’re approved, Citizens promises to support you through closing.

Pros and Cons

The Citizens Bank website shows updated rates for various loan programs. The starting rates on conventional loans are competitive but not market-beating. The rates on home equity lines of credit are better than average for amounts of $200,000 or more. The great thing is you can find out your pre-approved rate in minutes by applying online, and it won’t affect your credit score.

The flipside of the market-beating rates on credit lines with large amounts is that this program can get quite expensive (as high as 21% APR) if you’re only borrowing a small amount. Another thing worth noting about Citizens Bank is that while borrowers in all 50 states can apply online or over the phone, only borrowers in 11 states can apply in branch.

Types of Loans

Citizens Bank offers all the most common types of loans for purchasing or refinancing, as well as some harder-to-find loan programs:

Conventional loans. Loans for up to $548,250 (or more in areas with high property prices) with minimum 20% down payment (or 3% in the case of the Conventional 97 Loan, open to eligible borrowers).

• Jumbo loan. For loans above $548,250 (or higher in certain areas with high home prices).
• FHA loan. Government-backed loan for eligible borrowers, with down payment as low as 3.5%
• VA loan. Government-backed loan for eligible military, veteran, reserve, National Guard, and qualifying spouses, with no down payment.
• Construction-to-Permanent loan. Allows you to combine your construction or renovation financing and permanent mortgage into one loan. Involves a similar application process and rates to conventional loans.

Citizens also lets you tap into up to 80% of your home equity with the following program:

Home equity line of credit. Revolving line of credit with 10-year borrowing period followed by a 15-year repayment term. Choose interest-only payments or principal and interest payments during the 10-year borrowing period. Get easy access to funds with mobile and online banking or supplied checks. Save 0.25% off your rate with automatic monthly payments from a Citizens Bank checking account. The Citizens HELOC has no set up or appraisal fees, and the $50 annual fee is waived in the first year.

Loan Features

The most notable feature of Citizens Bank’s mortgage division is its impressive range of low down payment options, including:

• HomeReady Program. Fannie Mae mortgage program with as little as 3% down payment for purchases of single-family primary residences, and reduced mortgage insurance requirements for financing greater than 90%.
• Down Payment Assistance Program. Grants for borrowers meeting the following eligibility requirements: purchasing a primary residence; buying in a low-to-moderate census tract or in low-to-moderate income group; have not owned a home in the last three years; purchasing in Connecticut, Delaware, Massachusetts, Michigan, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Vermont, or Virginia.
• ONE Mortgage Program. For low- to moderate-income Massachusetts borrowers only, features include 3% down payment (of which a portion can come from gifts) and fixed, below-market interest rates.

Rates and Terms

The Citizens Bank website offers a daily snapshot of lowest rates for some, but not all, of its loan programs. Note that these sample rates are for borrowers with excellent credit (740+) and a 25% down payment. Following are the rates advertised in October 2021 (when the average interest rate in the U.S. was 3.05% for a 30-year fixed-rate mortgage, 2.30% for a 15-year fixed mortgage rate, and 2.55% for a 5/1-year ARM).

Summary

Citizens Bank offers a solid range of mortgage and home equity products with competitive rates. Like many big lenders, it lets you see personalized, pre-approved rates without any impact to your credit score. To find out your rate, simply apply online or call Citizens Bank directly. The process is obligation-free and only takes a few minutes to complete.

Contact Citizens Bank

Citizens Bank has its headquarters in Rhode Island. To speak to a mortgage expert, call 888-514-2300 or use the search tool on the Citizens Bank website to find a loan officer in your area.