CitiMortgage offers a wide range of home loan products to choose from. The large-scale lender has flexible requirements and will consider borrowers with below-average credit scores, low down payments, nontraditional work histories and alternative credit histories. If you already bank with Citi, you’ll enjoy discounts on rates and costs.
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Mortgage Options
With CitiMortgage, there are plenty of home loan products to choose from, including fixed-rate and adjustable-rate mortgages, government-backed ones like FHA and VA loans, and refinance and home equity options.
Fixed-rate mortgage. The interest rate remains the same for the lifespan of the loan, which means the amount due every month stays the same.
Adjustable-rate mortgage (ARM). The interest rate fluctuates over the life of the loan. In most cases, the rate is lower than a fixed-rate loan for an introductory period. Once that period expires, the rate can increase or decrease once a year. This mortgage option might be a good choice if you plan to stay in the home for just a few years.
Federal Housing Administration (FHA) loan. This is a government-backed loan which is available as a fixed-rate or adjustable-rate mortgage. This option might be a good choice if you have limited income, a low credit score, less than 20% for a down payment, a limited employment history or are self-employed.
Department of Veteran Affairs (VA) loan. This is a government-backed loan that offers competitive interest rates and requires no down payment with low closing costs and fees. It’s only available to current or former members of the US Armed Forces or National Guard and their spouses.
Jumbo loan. For loan amounts larger than $453,100, or $679,650 in certain areas. It has a higher interest rate, requires a larger down payment, and must have a lower loan-to-value ratio than conventional mortgages. This option is available as fixed-rate or adjustable-rate mortgages.
HomeRun mortgage. Citi’s mortgage program for low or moderate-income borrowers. HomeRun offers interest rates in-line with conventional loans and requires a down payment as little as 3% without any mortgage insurance.
Mortgage Rates & Costs
Current mortgage rates are published directly on the CitiMortgage website.
CitiMortgage also provides an online calculator that gives you estimates for interest rates and approximate closing costs. The latter, however, depends on a lot of factors that are beyond CitiMortgage’s control, so don’t take the numbers you get to heart.
Current Citibank customers get rate discounts and closing cost credits for any loan product of your choice. You’ll need to have a Citibank deposit account and set up automatic monthly transfers of your mortgage payment from this account in order to qualify. The nitty-gritty details of this feature aren’t published, so you’ll have to ask your banker directly about your discount perks.
Customer Service
In the J.D. Power 2018 U.S. Primary Mortgage Servicer Satisfaction Study, CitiMortgage came in at #15 out of 31 lenders, with a score of 762 points out of a possible 1,000 points. This study measured customer experience in six areas:
- New customer orientation
- Billing and payment process
- Escrow account administration
- Interaction
- Mortgage fees
- Communication
CitiMortgage’s average survey score indicates that it performs on par with its mortgage lending peers when it comes to managing customer relationships.
Availability
CitiMortgage is offered by Citibank, an international institution with branch locations concentrated in major US cities, like New York, Chicago and Los Angeles. That’s something to keep in mind if you prefer face-to-face service.
Eligibility
As a larger bank, Citi can be more flexible with its lending standards compared to a smaller lender. You may qualify for a CitiMortgage FHA or HomeRun loan if you have a credit score of 620 or below. Citi will even work with you if you are a freelancer, self-employed, or have other untraditional work history, and those that have alternative credit histories like rent and child support payments.
CitiMortgage also offers loan options that require much less than the standard 20% down payment. VA loans require 0% down, a HomeRun loan requires 3%, and FHA loans can have as little as 3% down. If you don’t have enough saved for the average down payment, you could still qualify for a home loan with CitiMortgage.
Application Process
You can start the application process in person, over the phone or online. If you start online, you can sign up for a complimentary consultation with a loan officer and get pre-approved. Most mortgage lenders will pre-qualify you for a loan online, but CitiMortgage is one of the few that will go one step further and pre-approve you as well.
With pre-approval, the application fee will apply, but it gives you the upper hand when you’re on the hunt for a house in a popular area where there’s tough buyer competition. According to Citi, you’ll get a loan estimate within three days of completing the loan application.
If you choose to apply online, you will create an online profile which can track your loan application. To start, you’ll need to provide information about the property you want to purchase, your contact details and your financial information.
Be prepared to submit your W-2s, pay stubs, federal tax returns and employment history for the past two years, bank and asset statements for the last two months, and a canceled rent check or other form of rent verification. If you are self-employed, you’ll need a current profit and loss statement. If you’re applying for a VA loan, you’ll have to show your VA certificate of eligibility.
My Impressions
Overall, CitiMortgage is a good choice for home mortgages or refinancing. The company offers a full range of home loan products, including ones with low down payment, and considers alternative credit like rent and child support payment history. As a bonus, it even offers discounts for Citibank customers.
However, Citi has a limited number of US branches, which makes it difficult if you prefer face-to-face interactions. The website is also not very user-friendly because it lacks a live chat feature and does not have a mobile-friendly version.
READ MORE: SEE THE BEST BANK BONUSES HERE AND THE BEST INVESTING BONUSES HERE.
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