Citi Mortgage Review: Diverse Mortgage Offerings With High Customer Satisfaction

Citi is an award-winning mortgage lender with a strong reputation for helpfulness and efficiency. In addition to its discounts and other incentives, Citi can accommodate most borrowers with its well-rounded selection of mortgage loans. Take a look at our Citi Mortgage review to find out whether Citi is the best mortgage lender for you.

Full Citi Mortgage review

This mortgage lender is a good fit for: Current Citi customers who want to save money on lender fees. Citi Mortgage is also great for borrowers looking for a low down payment mortgage with no private mortgage insurance.

Top perks

Wide variety of loan options

Citi Mortgage offers a wide selection of loans that can meet the needs of most borrowers who want to purchase a home or refinance a mortgage. Citi's menu includes the typical fixed-rate mortgage and adjustable-rate mortgage options. Citi Mortgage also offers low down payment mortgages and some government-backed loans. Citi's jumbo loan program is available to home buyers who need mortgages that exceed federal lending limits.

3% down payment loan option

Citi's HomeRun Mortgage program is the bank's homespun answer to low down payment mortgages. Qualified borrowers can make a down payment as low as 3% and pay no private mortgage insurance (PMI) on a 30-year fixed-rate loan. HomeRun Mortgage loans are for:

• Primary residence only
• Purchase loan or rate term refinance (no cash out)
• Conforming loans only
• Condos and co-ops okay

In certain high-cost markets, if you use nontraditional credit data to qualify, or if you want to buy a two-unit property, the down payment requirement for this loan type is 5%.

Discounts for Citi customers

Every Citibank deposit account holder is eligible for a substantial discount. Even better, where other mortgage lenders offer a one-time discount off the lender fee, Citi Mortgage reduces the mortgage interest rate. Borrowers who qualify get the benefit of the discount for the entire life of the loan. Here is the breakdown:

Lender paid closing cost assistance

Citi will give qualified borrowers up to $7,500 as a lender credit to reduce closing costs. The program is only valid in areas where Citi has branches and accepts deposits. It's valid for any loan type, so long as the home will be your primary residence. To qualify, your income must be no more than 120% of the area median income where you live, or your new home must be in a low- to- moderate income census tract. Borrowers also must complete a home buyer education course.

SureStart® pre-approval

Citi offers a pre-approval process that results in a firm commitment to lend. Citi reviews the applicant's income and asset documents, and gives its approvals in writing. This service is free.

Options for applicants without a deep credit history

Not all creditworthy applicants qualify for a mortgage based on traditional credit history. Some people are new to credit. Others prefer to live a cash lifestyle. Some may be new to the U.S. Whatever the case, Citi Mortgage is willing to evaluate alternative credit data for applicants who need it.

Highly rated

Citi's banking and mortgage businesses are consistent consumer favorites. They've ranked:

• No. 2 in the J.D. Power 2023 U.S. Retail Banking Advice Satisfaction Study
• No. 3 in the J.D. Power 2022 Primary Mortgage Origination Satisfaction Study
• 4.83 out of 5 stars on Zillow
• Kiplinger's 2023 second-best bank for high-net-worth individuals

What could be improved

Zero down mortgage option

Borrowers looking to buy a house with zero down payment may need to look elsewhere. Citi does offer the VA loan, which is available with zero money down. But for purchase loan borrowers who don't qualify for that program, a down payment is required. Gift money can be used for the down payment, but the borrower must contribute at least 1% of the purchase price. There is no USDA loan program.

Fees and rates transparency

Most mortgage lenders charge an origination fee, and many let you know how much it is up front. Citi charges this fee, but you have to contact a loan officer to find out how much it costs. A breakdown of fees on the website, possibly alongside today's rates, would be helpful.

Citi's Better Business Bureau rating

Citi Mortgage gets high marks from people who get new loans. But it earns a grade of "F" with the Better Business Bureau (BBB). The BBB says the reasons for the poor rating are:

• Failure to respond to complaints
• Failure to resolve complaints
• Government actions against the company

The recent government actions against Citibank related to failing to preserve audio recordings of its traders, and failure to establish adequate high level internal controls. The former is important because they help regulators make sure Citi employees are following trading laws. The latter is important because they are designed to prevent large banks from failing. 

Alternatives to consider

Bank of America Mortgage is a great option for borrowers who want to choose from a variety of loans. You'll find a full menu of conventional loans and government-backed loans at Bank of America (BofA). Like Citi, BofA offers a mortgage discount to its customers. BofA could be an especially good choice for borrowers who need help coming up with a down payment. Among other programs, BofA offers non-repayable grants to borrowers who qualify. Grant programs can be combined for a total of $17,500 and in some cases more.

Chase Mortgage is another possibility for buyers short on cash reserves. Chase offers grants that can reduce closing costs, as well as a special low down payment loan for which all of the funds can come from gifts. Chase could also be a great choice for borrowers who want to close on a loan quickly. The bank guarantees an on-time closing as soon as three weeks after receiving final paperwork, or it pays you $2,500. In 2023, the Closing Guarantee was temporarily raised to $20,000.

How to qualify

If you are trying to qualify for a mortgage, you're likely familiar with what mortgage lenders look for in a prospective mortgage holder. To qualify for a mortgage with Citi, you need to provide information about yourself and the property you want to buy.

Keep in mind that Citi's mortgage underwriters look at your application as a whole. But for most loans, these are some of the most important factors:

• A debt-to-income ratio, or DTI, of less than 50%. If yours is lower, even better.
• Stable employment or source of income.
• Sufficient cash in reserve and for the down payment.

You should have no recent late payments or overdrafts, and no unpaid collection accounts. These may not be immediate deal breakers, but they are red flags and could complicate your application.

Your credit score is a major factor in determining your mortgage interest rate. Citi usually requires a credit score of 620, but mortgages for people with poor credit are also available. You can qualify for an FHA loan with a FICO® Score as low as 580 and a 3.5% down payment. Some lenders offer FHA loans to borrowers with a score as low as 500 with a 10% down payment.

Once you're ready to get a loan offer, you can give Citi your information and go forward with pre-approval. Pre-approval does not obligate you to take on a loan. But it does help you compare offers.

How are Citi Mortgage's refinance rates?

Citi Mortgage's refinance rates tend to be among the lowest, but keep in mind that the lowest rates are reserved for the best-qualified applicants. If you don't have an excellent credit score or a 20% down payment, your interest rate might be higher.

How are Citi Mortgage's rates compared to the national average?

Citi's mortgage rates trend about the same or a little lower than the national average. Note that Citi also offers a relationship discount. If you qualify, you can get a lower interest rate and save money over time. The amount of the discount benefit depends on the amount of assets you hold at Citi. Citi customers who don't qualify for the rate discount can get a closing cost credit instead.

Citi Mortgage is right for you if:

You're a current Citibank customer with at least $50,000 in deposits. You can get the most bang for your buck with a loan from Citi Mortgage because of the interest rate reduction. That discount lasts for the life of the loan. This benefit is particularly valuable for high net worth individuals with significant assets at Citi.

You're a well-qualified borrower short on cash. Bypassing PMI payments with a HomeRun Mortgage loan could lead to impressive savings, especially in the first few years of the loan.