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Home Mortgage Preparation :: Citibank Mortgage
Citibank Mortgage: The Benefits and Disadvantages of a Mortgage from Citibank
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Based in St. Louis, Missouri, but available to customers all over the United States, Citibank Mortgage (or CitiMortgage) is committed to getting prospective homeowners into houses.
While they offer home equity lines of credit and second mortgages, the bulk of their business tends to focus on first-time buyers. If you're considering using Citibank Mortgage as your mortgage company, keep reading to learn the benefits and disadvantages of this large, national lender.
Benefits
A FreddieMac/Fannie Mae Lender
Anyone who qualifies for a FreddieMac or Fannie Mae mortgage can also qualify for a Citibank mortgage.
Through the FreddieMac and Fannie Mae programs, prospective homeowners can purchase a home with a lower down payment and avoid expensive financing costs alongside private mortgage insurance.
Broad Range of Products
Citibank Mortgage offers consumers first-time buying advice, refinancing options, renovation financing, and a wide variety of home equity loans. Their conventional home equity loan is offered at 7.24% while their home equity line of credit is available to homeowners for as little as 4.99%, a great savings through a range of products.
Disadvantages
Limitations on Investment Property Financing
Citibank Mortgage no longer offers financing for investment properties in the form of 3 and 4 family homes or higher. While they used to offer almost full, 100 percent financing for investment rental properties that had tenants, they recently stopped mortgaging them all together.
Tighter Loan Requirements
After the recent housing crisis and the looming credit crunch, CitiMortgage and Citibank itself have both tightened their loan requirements.
This means obtaining a Citibank mortgage will be harder, have higher credit score requirements, and will need more paperwork and documentation from the borrower.
Financial Difficulties
In the past year, Citibank and Citibank Mortgage have cut hundreds of jobs, restricted their loan offerings, tightened their mortgage requirements, closed divisions and reported extensive losses quarter after quarter.
While they're certainly not alone in today's market, you may want to ask yourself if you want to borrow from a lender who may not be as financially secure as you think.
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