Citizens Bank HELOC Review – Forbes Advisor – Technologist

Citizens Bank bases HELOC lending decisions on three main factors: your FICO score, your loan-to-value ratio (LTV) and your debt-to-income ratio (DTI). Here’s what you need to know about Citizens Bank’s minimum borrower requirements for HELOCs.

Minimum Credit Score for Citizens Bank HELOC

Citizens Bank doesn’t publish a minimum credit score requirement for its traditional HELOC or GoalBuilder HELOC. Citizens indicates your credit history must demonstrate the ability and willingness to repay your HELOC on time.

In general, aim for a credit score of at least 620 to qualify for a HELOC. The higher your credit score, the better your chances of qualifying for a Citizens HELOC and the more competitive your rates.

Maximum Loan-to-Value Ratio for Citizens Bank HELOC

Citizens will also look at your loan-to-value ratio—or LTV—when making HELOC lending decisions. LTV is calculated by dividing the total amount of liens against a property by the home’s current market value and multiplying the result by 100 to get a percentage. This value determines how much you’re eligible to borrow and at what APR. In general, lenders let consumers borrow up to 80% LTV, but Citizens doesn’t publish its precise requirements.

Maximum Debt-to-Income Ratio

The debt-to-income (DTI) ratio is a key metric lenders use to evaluate your ability to repay a mortgage. DTI compares your monthly bills and debt obligations to your gross monthly income.

Citizens Bank doesn’t publish its DTI requirements, but lenders typically require borrowers to have a DTI no higher than 50% to qualify for a HELOC. Additional income limits may apply for Citizens GoalBuilder HELOCs, but Citizens doesn’t disclose these online.

Property Requirements

HELOCs are available only for owner-occupied one- to four-unit properties, including condominiums and second/vacation homes. That said, investment properties, co-ops, mobile homes and manufactured housing are not eligible.

Citizens offers HELOCs to borrowers in Washington, D.C., and the following states: Alabama, Arkansas, Connecticut, Delaware, Florida, Georgia, Iowa, Illinois, Indiana, Kentucky, Massachusetts, Maryland, Maine, Michigan, Minnesota, North Carolina, Nebraska, New Hampshire, New Jersey, New York, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Virginia, and Vermont. If Citizens Bank isn’t available in your state, consider one of the best HELOC lenders.