Citibank Bad Credit Mortgage Reviews

CityBank Financial Terms in a Glimpse

What Citibank Offers

CitiMortgage has various options catering to both ends of the income spectrum. From adjustable-rate to a fixed-rate conventional mortgage loans and specialty Government loans to jumbo loans, CitiMortgage has an applicable option for every interested borrower. They provide mortgages across the United States. The minimum down payment rates go as low as 3.00% and increase up to 20% depending on your outstanding liabilities and credit score. Another area of flexibility centers on their loan repayment terms which allow you to choose from 10, 15, and 30-year mortgage options.

Apply Online

Citi features a detailed website where you can find almost everything you need to make an informed decision. The online application process is straightforward as well. During the application process, you can check the videos and how-to guides for assistance. Although the application process is long, you can track its status in real-time through the online portal which is advantageous.

Home Loans

CitiMortgage has been a top player in the mortgage and lending industry since 1979. They understand a borrower’s needs and thus have a comprehensive range of home loans available to cater to nearly every income level and credit score. You can compare the different options on their website, try the mortgage calculators, and submit an application online. The minimum required credit score is 620, and down payments start as low as 3.00%. For VA Loans, certain borrowers may be eligible for a zero down payment loan.

Adjustable-Rate Mortgage

This loan type generally features a lower fixed rate initially, then adjusts to market rates for the remainder of the repayment period. You will likely be paying a lower monthly payment after the mortgage loan is initially disbursed, however, this monthly amount might increase if the rates go up.

Fixed-Rate Mortgage

Just as the name suggests, you don’t have to worry about fluctuating interest rates in this mortgage plan. You can choose from 10, 15, or 30-year repayment terms. As of today, the rate for a 30-year mortgage loan is 4.375% and the Annual Percentage Rate (APR) is 4.498%.

FHA Loan

A Federal Housing Administration (FHA) loan is a great choice if you have a low credit score or a down payment amount that is less than 2.00%. This loan type is available as both a fixed-rate and adjustable-rate mortgage. The maximum loan amount approved ultimately depends on the cost of your area and property.

VA Loan

This Veteran Affairs (VA) loan is limited to current or past members of the US Armed Forces and the spouse(s) of a service member. The Department of Veterans Affairs guarantees this mortgage, thus it has the lowest interest rates and closing costs. It also has the lowest credit score requirements and might not require a down payment either.

HomeRun Mortgage

This is a great choice for low and moderate-income borrowers. You can be eligible for this loan if you earn 80% or lower than the average median income of your area/locality. There is no insurance involved, and down payment rates start as low as 3.00%. The amount offered can go up to $765,600 depending on the cost of the area.

Jumbo Loans

These unique loans are designed for any amount that is outside the conventional loan limits set by Government-Sponsored Enterprises (GSEs) like Fannie Mae and Freddie Mac. This loan comes with a higher interest rate and requires a larger down payment as well. The LTV (loan-to-value) ratio is also higher than any conventional mortgage.

How Citibank Works

CitiMortgage offers a lot of online resources, mortgage calculator tools, step-by-step video tutorials, FAQs, and more to ease borrowers into the application process. Borrowers can also connect with designated loan officers via phone or visit a local branch in-person to learn more and apply.

The application process is divided into parts, and it is fairly easy to track the status of your application online. You can either start with a pre-approval or directly apply after selecting a property. For pre-approval, you can enter your contact details and a mortgage representative will call you.

Alternatively, you can apply online. All you need to do is fill in the primary details (your info and the property’s details). Next, your request will be processed and depending on the lender, you may be able to continue the application online. Then, you need to provide consent to proceed and move on to the next stage.

Document Submission – CitiMortgage will ask for multiple documents before processing your application any further. Following the successful validation of your documents, you’ll receive a loan estimate within 3 days. Read the terms and conditions, rates, and fees before accepting an estimate.

Home Appraisal – After the first step, you will receive a request to provide a home appraisal to the lender. This appraised value depends on factors like property size, comparison with recently sold properties in the same area, and other characteristics that might impact the property’s value.

Approval & Closure – Once everything is successfully processed, an underwriter will review the loan and give you the final decision. Sign the closing documents, pay the upfront charges, and you’re all set.

Citibank Fees and Terms

Citi’s down payment rates range between 3.00% to 20.00% depending on the loan type select and these options are accompanied by flexible repayment terms for fixed-rate mortgages (10, 15, 30-year) and 3/1, 5/1, 7/1- terms for adjustable-rate mortgages. Compared to other lenders, they have a higher credit score requirement (620) and it is worth noting that Citi also charges processing and insurance fees on every approved loan.

Please note that it is recommended to call a loan officer for better clarity on CitiMortgage’s interest rates because they include reward points and existing clients of Citibank may be able to obtain more favorable terms.

To get approved sooner, make sure you have the following information and documents handy when applying:

• Social Security Number (SSN)
• Primary Residence Address
• Pay Stubs or Proof of Direct Deposits
• Bank/Asset Statement (latest 2 months)
• VA Eligibility Certificate (VA Loan only)
• Employment History (2 years)
• Federal Tax Returns (2 years)
• W-2s (Wage and Tax Statement)
• Purchase Agreement (in some cases)

Citibank Customer Service

For any borrowers seeking more information or wishing to speak to a representative, you can reach their customer service department via phone, email, and in-person when there is a local branch nearby. They also feature a detailed support section on their website that is designed to cater to almost all of your mortgage-related queries and common questions.

One possible area for improvement for Citi is adding brick-and-mortar office locations given the relative scarcity of in-person options. Moreover, you can’t complete an application online without speaking with a mortgage representative. Although they have multiple payment calculators that help you get an estimate, sometimes it might be difficult to understand as most rates take reward points into consideration and existing Citi clients might also get preferential rate options. Nonetheless, Citi has received multiple awards and has notched an above-average customer satisfaction rate.

Final Verdict About Citibank

If you have a low or moderate-income or are an existing Citi account holder, CitiMortgage might be the perfect solution to finance your homeownership ambitions. As a subsidiary of one of the largest banks in the US, Citi is able to offer fair down payments and relatively competitive terms. Although the interest rates aren’t the lowest when compared to other lenders, CitiMortgage offers among the best deals on closing costs.

Our recommendation is that you check the current rates on their website and compare them with other lenders before applying for a mortgage to finance your dream home.