Citizens Bank
- HELOC, interest-only HELOC, GoalBuilder HELOC
- From 8.5%
- Not disclosed
- 800-340-5626
Based in Rhode Island, Citizens Bank offers various personal and business banking services, both online and in-person, from savings accounts to credit cards.
Citizens allows borrowers to tap into their home’s equity with a home equity line of credit, or HELOC, in 29 states and the District of Columbia. In addition to a standard HELOC, the lender offers an interest-only HELOC and its proprietary GoalBuilder HELOC designed for lower loan amounts.
Citizens made our list of the best HELOC lenders because of its range of HELOC offerings, price transparency and customer service.
Citizens Bank: At a glance
| Types of loans offered | HELOC, interest-only HELOC, GoalBuilder HELOC |
| APR range | HELOC: From 8.5%GoalBuilder HELOC: From 11.75% |
| Loan amounts | HELOC: As low as $17,500GoalBuilder HELOC: $5,000 to $25,000 |
| Credit score requirements | Not disclosed |
| Repayment terms | 10-year draw period, 15-year repayment period |
| Average time for approval | Varies, but generally less than 30 days |
Pros and cons
Pros
Multiple HELOC options: The bank offers a standard HELOC, a GoalBuilder HELOC and an interest-only HELOC.
Minimal fees: Citizens waives most or all of the closing costs for HELOC applications. It also waives the $50 annual fee for the first year, and there’s no annual fee for the GoalBuilder HELOC.
Autopay discount available. Applicants who enroll in autopay from an eligible Citizens checking account can receive a 0.25% discount on their interest rate.
Cons
Limited availability: Citizens Bank services eligible properties in only 29 states and the District of Columbia. You can’t apply for a HELOC if your property is outside those states.
Not available for certain property types: Mobile homes, manufactured homes, co-ops and investment properties are ineligible for a Citizens HELOC.
No fixed-rate options: Citizens does not offer a home equity loan or a fixed-rate HELOC option.
Home equity loan options
HELOC: With a Citizens HELOC, you get access to a revolving line of credit. You can borrow as much (or as little) as you need up to your credit limit. Citizens’ HELOCs come with a 10-year draw period and a 15-year repayment period.
Interest-only HELOC: Borrowers can elect to make interest-only payments on their HELOC during the draw period. Once you reenter the repayment period, your balance will be converted to a principal-and-interest monthly payment to pay back over 15 years.
Citizens GoalBuilder HELOC: The GoalBuilder HELOC differs from the standard HELOC in that it’s built for individuals who are still working to build equity in their home. This HELOC is for smaller amounts (between $5,000 and $25,000), while the standard HELOC offered by Citizens allows consumers to borrow larger amounts.
Fees
One of the main benefits of a Citizens HELOC is the minimal fees. Its standard HELOC has no closing costs, application or appraisal fee. There is a $50 annual fee, but it’s waived the first year.
The GoalBuilder HELOC has no annual fee or prepayment penalty.
How to qualify
Citizens Bank considers three main factors to determine if you qualify for a HELOC: credit history, loan-to-value ratio and debt-to-income ratio.
While your credit score doesn’t have to be exceptional to qualify for a loan, a better score will get you a better rate. Citizens want to see that you can repay the loan on time and in full. Like most lenders, Citizens allows you to have up to 80% LTV. However, this requirement can vary by state.
Your property must also meet a few requirements to qualify. It must be a primary residence or second home (investment properties, co-ops, mobile homes and manufactured homes don’t qualify) and located in one of Citizens Bank’s 29 serviced states or the District of Columbia.
The GoalBuilder HELOC has its own income and property location restrictions, but the bank doesn’t specify the exact requirements.
Applying for a HELOC with Citizens
Use the online application or call 888-333-1206 for a customer service representative to walk you through the application process. If you prefer applying in person, schedule an appointment at a local branch.
Whether you apply online or in person, be sure you have the necessary information before you start the application process. You’ll need personal information, including details about your property, your debt-to-income ratio and more. The lender will likely also want to see your recent Form W-2, pay stubs and tax returns, as well as any information pertaining to your existing mortgage.
Once you submit your application, a loan originator will contact you to verify your application details and walk you through the next steps. Once Citizens has reviewed your application, you may need to get a home appraisal. If approved, you can receive your funds within 30 days.
Customer service
You can speak with a Citizens Bank home equity adviser via phone or by visiting a local branch. The bank’s home equity and loan application teams are available via phone at 800-340-5626. Its Consumer Finance Servicing department can be reached at 800-708-6680, Monday through Friday from 4 a.m. to 7 p.m. PT or Saturday and Sunday from 6 a.m. to 3 p.m. PT.
To talk to someone at a local Citizens Bank branch, locate the nearest office on its website. You should schedule an appointment to speak with an adviser in person.
