Citibank Mortgage Review 2024: A Comprehensive Analysis of Citibank's Mortgage Products and Services

Citibank offers competitive mortgage rates, extensive coverage, and a fast preapproval process, making it a top choice for homebuyers.

Citibank's closing cost credit and small down payment options can be a significant help to homebuyers, especially first-time buyers, who may face challenges in meeting the hurdle of closing costs.

Despite earning high customer satisfaction scores from JD Power, Citibank, which was founded in 1812 as the City Bank of New York, received a failing grade from the Better Business Bureau.

Citibank mortgage pros and cons

Citibank mortgage types

Citibank provides conventional, jumbo, FHA, and VA loans in all 50 states and Washington, D.C., but does not offer USDA loans.

• Fixed-rate mortgages from Citi come with a consistent rate for the entire loan term, ranging from 10 to 30 years. Down payments as low as 3% are available.
• Citi offers adjustable-rate mortgages (ARMs) with a fixed interest rate for three to ten years, followed by periodic adjustments.
• These loans, backed by the Federal Housing Administration (FHA), require a minimal down payment of 3.5% for borrowers with a 580 FICO score or 10% for borrowers with a 500 credit score.
• This mortgage, which is lower in rate and does not require a down payment or private mortgage insurance, is available to both veterans and active service members.
• Jumbo loan: A loan that exceeds the conforming limits of the Federal Housing Finance Agency. Citi offers jumbo loans of up to $8.8 million.
• A low-down-payment mortgage option for medium- and low-income borrowers in specific locations, offered by Citi HomeRun.

How to qualify for a Citibank mortgage

• A minimum credit score of 620 is typically preferred by lenders for a conventional mortgage, although Citibank does not disclose their minimum credit score requirements.
• The minimum down payment requirements for conventional, HomeRun, FHA, and VA loans are 5%, 3%, 3.5%, and 0%, respectively.
• Citibank typically mandates a debt-to-income ratio (DTI) of 43%.

Citibank mortgage fees

• The commitment fee is $915 and the application fee is $175 (in applicable states).
• Prepayment penalty: Citibank does not charge prepayment fees on first mortgages.
• Rate lock fees: Citibank does not charge a rate lock fee.
• A good faith deposit is a deposit made by the buyer to demonstrate their commitment to purchasing. It usually ranges from 1% to 3% of the purchase price.

Citibank benefits and discount

Citibank has a variety of programs that can help you achieve homeownership.

Citi HomeRun mortgage

Qualified borrowers in select cities can put as little as 3% down on a 30-year fixed-rate loan without mortgage insurance, according to Citi. Credit score requirements are more flexible, but applicants should not exceed 120% of the average median income.

SureStart® mortgage preapproval program

Citi's SureStart preapproval promise ensures that you will receive a "commitment to lend," eliminating the possibility of the bank declining or lending you less than expected.

Relationship discount

Citibank customers can receive a $500 closing credit or a discount of up to 5/8% on their mortgage rate based on their account balance.

Lender paid assistance program

Borrowers who earn no more than 120% of the average median income in their area or who are buying in designated census tracts in Atlanta, Austin, Dallas, Denver, Houston, Philadelphia, or Cambridge, Massachusetts, may be eligible for a closing cost grant worth up to $7,500.

Citibank mortgage refinancing

Citibank provides cash-out and rate-and-term refinancing, as well as home equity lines of credit, which are not offered by many competitors. However, it does not provide home equity loans.

• Citibank does not reveal the minimum credit score required, but it collaborates with borrowers who have limited or no credit.
• A debt-to-income ratio (DTI) of 36% or less is typically required by borrowers seeking cash-out refinancing.
• To refinance their home, borrowers usually need to have at least 3% to 5% equity in their property.
• Home appraisal: A complete appraisal is necessary for most refinancing.

Citibank customer service

JD Power's Mortgage Origination Satisfaction Study ranked Citibank third out of 27 lenders in 2022 and 2023, indicating a mixed record on customer service during the mortgage application process.

Citibank received an F rating from the Better Business Bureau (BBB) due to unresolved complaints.

Although Citibank does not offer an online chat option and its customer support line is closed on Sundays, its website is available in Spanish and includes sample rates, mortgage calculators, and a comprehensive homebuyer's guide with informative articles.

Citibank stopped issuing mortgages in 2018, but its loan-servicing partner, Cenlar FSB, has an A+ rating from the BBB.

How does Citibank compare to other mortgage lenders?

Here's how Citibank stacks up against two other top lenders.

Citibank vs. Chase Bank

While Citi offers lower mortgage rates than both Chase and the market average, Chase provides twice as many low-down-payment options and is more transparent about its credit requirements.

Both lenders excel in accessibility and offer discounts and closing cost grants for existing customers.

While Citi aims to meet closing deadlines of 30 days, Chase offers a guarantee of on-time closing in just 21 days or eligible borrowers can receive a refund of $5,000.

While Chase received an A+ rating from the Better Business Bureau, Citibank received an F. Despite this, Citibank won out on JD Power's 2023 mortgage origination survey, coming in third place to Chase's 10th. Chase scores highly as a mortgage servicer, but Citibank stopped servicing its home loans in 2018.

Citibank vs. Rocket Mortgage

Rocket Mortgage may have lower rates, but Citi offers in-person assistance that digital-only Rocket cannot provide.

While the Rocket ONE+ mortgage requires a 1% down payment, the Citi HomeRun loan has a minimum down payment of 3%.

While Citibank offers jumbo loans of up to $8 million, Rocket caps them at $3 million.

While both Rocket Mortgage and Citi have received high scores from JD Power, Rocket has received an A+ from the Better Business Bureau, surpassing Citi's failing grade.

How do I apply for a mortgage with Citibank?

You can apply for a mortgage with Citibank online, over the phone or in person at one of their 650+ U.S. branch locations. Applicants can call 800-248-4638 Monday through Friday, 8 a.m. to 10 p.m. ET, and Saturday, 9 a.m. to 7 p.m. ET. Additionally, you can request a call on the Citibank website. If you're searching for a home, Citibank can connect you with Home Captain, a real estate platform with listings and agents.

To secure a mortgage, you must provide loan documents such as tax returns, pay stubs, bank statements, and evidence of debts and assets. Citibank will conduct a hard credit check, which may negatively impact your credit score. In three business days, you will receive an estimate detailing the proposed loan amount, interest rate, closing costs, insurance, and payment schedule. To finalize the loan, you must accept the terms.

After the appraisal, Citibank's underwriters will make a final decision, allowing you to proceed with closing day.

Is Citibank mortgage right for me?

If you're looking for a nationwide lender with low rates, closing cost grants, and mortgage options without mortgage insurance, Citibank could be a great choice. Additionally, if you're already a Citibank customer, you may qualify for a $500 closing cost credit or a reduction on your mortgage rate.

Despite being transparent about its credit score requirements, Citibank received the lowest grade possible from the Better Business Bureau.

If getting to the finish line fast is a priority, you may want to shop around because this lender doesn't guarantee its closing timeline.

Why trust CNBC Select?

At CNBC Select, our goal is to deliver top-notch service journalism and in-depth consumer advice to our readers, enabling them to make well-informed decisions when it comes to their finances. Each mortgage review we publish is the result of thorough reporting by our team of expert writers and editors, who possess extensive knowledge of financial products. While CNBC Select receives a commission from affiliate partners on many offers and links, we create all our content independently, without any input from our commercial team or external third parties. We uphold the highest journalistic standards and ethics in everything we do.

Methodology

CNBC Select evaluates mortgage products based on various factors, such as loan types, average rates, terms, accessibility, fees, down payment options, online services, and customer satisfaction.

We also take into account data from external sources, such as J.D. Power's lender scores and Better Business Bureau ratings, in addition to our own research.

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