Citizens Bank Home Equity
Vault Verified
Expert Take
Citizens Bank offers home equity line of credit (HELOC) borrowers a generous draw period (10 years), fast funding and no closing costs. But home equity financing options from the bank are limited to HELOCs, and they’re not available in every state. It’s also important to note that annual fees apply to HELOCs from Citizens Bank, and the lender doesn’t disclose the minimum credit score you need to qualify for funding.
Pros
- Fast funding (in as little as 14 days)
- Check rate with a soft credit inquiry that doesn’t hurt credit score
- Lengthy 10-year draw period
- No closing costs
Cons
- $50 annual fee required during draw period (except for year one)
- Lender doesn’t disclose minimum credit score requirements
- HELOCs not available in 20 states
- Borrowers may only be able to access up to 80% of their equity
Vault’s Viewpoint on Citizens Bank Home Equity
For eligible borrowers who can access a home equity line of credit (HELOC) from Citizens Bank, the financing solution comes with some solid perks. The flexible 10-year draw period is a standout feature because it gives borrowers a considerable amount of time to use the HELOC, pay down the line of credit and use it again if needed.
Another benefit of the HELOCs that Citizens Bank offers is that interested borrowers can check their rate with only a soft inquiry. This feature allows you to see if you’re eligible for financing and how much the bank may charge you without any damage to your credit score. Because Citizens Bank doesn’t disclose the minimum credit score required for a HELOC, the option to check your rate with only a soft credit inquiry is especially helpful.
If you qualify for a HELOC, you have options when it comes to repaying your debt. Borrowers can choose to make interest-only payments during the 10-year draw period in an effort to keep monthly payments more affordable. When the draw period ends, you’ll have to pay principal and interest, and your payment will increase (even if your interest rate stays the same). However, if you want a chance to rebuild equity in your home faster and possibly save on interest in the long run, you could also opt to pay interest and principal for the entire term of your HELOC.
Funding speed is another area where Citizens Bank stands out. In some cases, you may be able to access your home equity line of credit in as little as two weeks after your application. But the lender points out that every situation is different.
Citizens Bank also offers a GoalBuilder HELOC to borrowers who might not qualify for traditional home equity financing. These HELOCs are available with lower borrowing limits—$5,000 to $25,000—and variable interest rates based on the Prime rate plus 3.25% or 3.00% (with auto pay discount from a Citizens checking account).
Of course, there are downsides to consider when you take out a HELOC with any lender, and Citizens Bank is no exception. One con to the HELOCs that Citizens Bank offers is the fact that they feature annual fees. You won’t have to worry about paying the fee during year one your HELOC, but the $50 expense kicks in during years two through ten (aka the draw period).
The maximum LTV (loan-to-value) ratio with Citizen Bank is typically around 80%. By comparison, some lenders might let you access up to 95% of your home’s equity. So, if you need to tap into a bigger portion of your home equity, you might want to shop around and compare your options.
The annual percentage rates (APRs) that Citizens Bank offers may sometimes be higher than what some other lenders have to offer—especially on the maximum end of the equation. Well-qualified borrowers may be eligible for a competitive rate. But no matter your credit score, it’s always wise to compare offers from multiple lenders to ensure you find the best deal available for your situation.
About Citizens Bank Home Equity
Citizens Bank, founded in Rhode Island in 1828, is one of the oldest banks in the United States. As of March 31, 2024, Citizens Bank ranked as the 14th largest bank in the country according to the Federal Reserve, based on assets. The bank has more than 1,100 branches located throughout 14 states and Washington, D.C.
In addition to home equity lines of credit, Citizens Bank provides its customers access to numerous other financial products. Bank customers can open traditional deposit accounts such as checking, savings and certificates of deposit (CD). There are also financing options available to qualified borrowers including credit cards, mortgages (purchase and refinance), student loans and more.
If you’re interested in applying for a HELOC from Citizens Bank, it’s important to review the details of the financing offer before you accept. Depending on your preferences, there are several ways to apply for financing. You can complete an online application (called Citizens Fastline), call the bank or schedule an appointment to meet with a banker at a local branch.
| Minimum Credit Score | Not disclosed |
| Days to Close | As fast as 2 weeks from application to funding |
| Repayment Schedule | 10-year draft period; 15-year repayment period thereafter |
| APR Range | 8.50% to 21.00% variable |
| Fees | No annual fee during year one; $50 annual fee each year during the draw period |
Who Is Citizens Bank Home Equity Best For?
If you’re a homeowner in one of the 29 states where Citizens Bank operates (or Washington, D.C.), a HELOC from the financial institution could be worth considering. The bank does shine at helping customers who need access to financing in a hurry and some borrowers may be able to access funds in as little as two weeks. The long draw period (10 years) could also be a big plus for borrowers who want the ability to use, pay down and reuse their line of credit as the need arises in the future.
HELOCs from Citizens Bank might also appeal to borrowers who value paying low fees. The $50 annual fee that the lender does charge is modest compared to others in the home equity space—especially when you consider that you won’t pay any annual fee during year one and there’s no fee after the draw period ends. Aside from the $50 annual fee during years two through nine ($400 total), Citizens Banks doesn’t charge an application fee, administration fee or a prepayment penalty.
You might also want to consider a HELOC from Citizens Bank since it’s easy to check your interest rate without credit score damage. Not all lenders that offer home equity financing make it easy to rate shop with only a soft credit inquiry. This feature is a definite plus.
Who Should Consider an Alternative to Citizens Bank Home Equity?
It’s no secret that home equity lines of credit feature pros and cons. And a HELOC from any lender, Citizens Bank included, will not be a perfect fit for every borrower.
If your goal is to access as much of your home equity as possible, Citizens Bank may not be ideal for your borrowing needs. In general, the bank prefers its borrowers to have an LTV ratio of 80% or less. So, if you want to tap into a greater percentage of your home equity, you may want to consider alternative lenders or different financing options.
Of course, Citizens Bank doesn’t offer home equity financing to borrowers in every state either. So, if you live in one of the states where the bank doesn’t issue HELOCs, you won’t be eligible to submit an application.
How Does Citizens Bank Home Equity Stack Up to Its Competitors?
It’s a good idea to compare multiple lenders before you apply for home equity financing. Comparing offers can help you make sure you find the best rate available and the most attractive financing solutions for your situation.
Below are some Citizens Bank competitors to consider.
Citizens Bank Home Equity vs. Spring EQ
Spring EQ is an online lender that offers home equity loans, HELOCs, and cash-out refinance loans to eligible borrowers. Unlike Citizens Bank, Spring EQ allows well-qualified borrowers (those with FICO Scores of 700 and above) to access up to 95% of their home equity with maximum loan amounts of $500,000. So, if you need to tap into a bigger portion of your home’s value, Spring EQ might be a helpful solution.
On the negative side, Spring EQ charges higher fees than Citizens Bank. Borrowers pay the online lender a $799 administration fee for home equity loan and a $499 administration fee for HELOC. There’s also a $99 annual maintenance fee for HELOCs. And Spring EQ only gives its HELOC borrowers a three-year draw period compared to the more flexible 10-year draw period that Citizens Bank offers.
Citizens Bank Home Equity vs. Fifth Third
Fifth Third is another traditional bank that offers home equity financing with no closing costs. But unlike Citizens Bank, Fifth Third gives eligible borrowers the choice between fixed-rate home equity loans and home equity lines of credit.
With Fifth Third, however, you must live in one of the 11 states where the bank does business to be eligible for home equity financing. The closing process also takes around 45 days. So, borrowers who are in a rush to receive funding may want to look elsewhere for financing.
Citizens Bank Home Equity vs. Bank of America
Like Citizens Bank, Bank of America is a well-known banking institution with a large footprint. The large national bank offers HELOCs up to $1 million for qualified borrowers, but like Citizens Bank, does not offer home equity loans. You may be eligible for rate discounts if you have existing accounts with Bank of America.
Bank of America doesn’t charge any administrative fees or annual fees on its HELOCs. But there is a prepayment penalty you’ll need to pay if you decide to pay off and close your HELOC in three years or less.
Borrowers can typically access up to 85% of their home equity with a HELOC from Bank of America. While this isn’t much higher than the maximum LTV ratio available from Citizens Bank, it might make a difference depending on your borrowing goals.
Frequently Asked Questions
Does Citizens Bank Offer Discounts on HELOCs?
Citizens Bank customers may be eligible for a discount on their interest rate when they take out a home equity line of credit from the bank. To qualify for the discount, HELOC borrowers must sign up for autopay from an eligible Citizens Bank checking account.
What Credit Score Do You Need To Qualify for a HELOC With Citizens Bank?
Citizens Bank doesn’t disclose the minimum credit score borrowers need to qualify for a home equity line of credit from the financial institution. However, the bank does allow you to check your borrowing eligibility and get a personalized rate online with only a soft credit inquiry. Checking your rate and financing offer with the bank will not hurt your credit score.
How Long Does It Take To Close on a HELOC From Citizens Bank?
Every situation is different. But Citizens Bank states that the closing process on a home equity line of credit could be as fast as two weeks from the time it receives your application to funding.
