When you start comparing mortgage lenders, a handful of national names appear on every site. First Citizens Bank is not the first one people think of, but it’s becoming harder to ignore. After its 2023 acquisition of Silicon Valley Bank, the Raleigh-based lender now holds more than $200 billion in assets and writes mortgages across much of the country. If you’re weighing whether a First Citizens Bank mortgage is the right move, this guide walks through the loans on offer, the rate process, and the service experience so you can compare it against more familiar lenders.
What exactly is First Citizens Bank?
First Citizens has been around since 1898 and remains controlled by the Holding family. It operates hundreds of physical bank branches, mostly in the eastern half of the United States, and originates mortgages through a more conventional banking channel. You won’t find a pure-play digital platform like Rocket Mortgage or Better.com. Instead, expect a dedicated loan officer, someone you can call or even meet at a local branch. That personal touch is a major feature of any First Citizens Bank mortgage, and it matters more to some buyers than others.
One important detail after the SVB acquisition: First Citizens now keeps many of its loans on its own books. In plain language, that means you’re more likely to make your monthly payment to the same bank that approved your loan. That can be convenient if you want to discuss escrow changes or prepayments later.
Mortgage products First Citizens offers
First Citizens covers most of the standard loan categories you’d expect from a large bank. You don’t need to be an existing customer to apply, but if you already have a checking or savings account there, you may save a little on fees.
Conventional fixed-rate and adjustable-rate mortgages
A 30-year fixed-rate loan is the most common choice. First Citizens also offers 15-year and 20-year fixed terms, plus adjustable-rate mortgages (ARMs) that give you a fixed interest rate for the first five, seven, or ten years. If you plan to stay in the house for less than seven years, an ARM can lower your rate noticeably. If the thought of fluctuating payments makes you nervous, stick with the fixed product.
For a conventional loan at First Citizens, your down payment can be as low as 3% for primary residences. When you put down less than 20%, you’ll pay private mortgage insurance until you build enough equity. That’s not specific to First Citizens—it’s standard industry practice—but your loan officer should explain exactly what the premium will add to your monthly bill.
FHA, VA, and USDA loans
Government-backed lending is where the bank has some real muscle. FHA loans are often suited to first-time buyers with smaller down payments and credit scores that might not qualify for conventional financing. You can get in with as little as 3.5% down, and First Citizens will walk you through the additional requirements, like the upfront mortgage insurance premium.
Eligible veterans can apply for a VA loan and buy with no down payment. The VA program doesn’t require monthly mortgage insurance and generally offers lower interest rates than FHA or conventional loans. USDA loans are less common but available for houses in designated rural areas. These come with 100% financing if the property qualifies.
Jumbo loans
If you live in a high-cost city like San Francisco, Seattle, or Washington, D.C., your purchase price may exceed the conforming loan limit. First Citizens offers jumbo mortgages that go beyond that cap. Terms and underwriting get stricter as loan amounts rise, so be prepared to show ample cash reserves and a low debt-to-income ratio.
Refinances and home equity options
Already own a house? First Citizens can handle a rate-and-term refinance, a cash-out refinance, or a home equity line of credit. If you want to pull equity out without disturbing your first mortgage’s low rate, a HELOC through the bank may be a better option.
First Citizens Bank mortgage rates and fees
Here’s the tricky part: First Citizens does not publish a daily rate sheet online. In contrast to fintech lenders like LoanDepot and New American Funding, you’ll need to request a customized quote from a loan officer. Your quoted rate will depend on your credit score, down payment, loan amount, and which state you’re buying in. Historically, the bank’s rates have been roughly in the middle of the pack—not the absolute lowest, but competitive when you factor in the service level.
Be sure to ask for a written Loan Estimate before agreeing to anything. That three-page document will tell you the interest rate, APRs, closing costs, title fees, and any points. Use that estimate to compare apples to apples with other lenders, because a slightly lower rate with higher fees can end up being the worse deal.
Applying for a First Citizens mortgage
You can apply online through their website, upload documents into a borrower portal, and e-sign disclosures. But the human touch remains. Most applicants start with a phone conversation or branch visit. You’ll provide pay stubs, W-2s, bank statements, and maybe additional documents if you’re self-employed.
Aim to close in 30-45 days. It can take longer if there’s any appraiser or title backlog in your area. You’re required to get homeowners insurance before closing, and your loan officer will coordinate that timing.
Pros and cons of using First Citizens Bank
No lender is perfect. Before you lock in anything, consider these advantages and limitations.
- Human service throughout the process. You’ll work with a named loan officer who can meet with you face-to-face.
- A wide range of loan programs. FHA, VA, USDA, conventional, and jumbo mortgages are all under one roof.
- Loan servicing stays in-house. The branch that approves your mortgage often stays connected after you close.
- Existing customer convenience. Your mortgage payment and bank accounts show up in the same online portal.
But some drawbacks are real, too.
- Rate transparency is poor. The absence of online rates makes it harder to benchmark a good deal before you pick up the phone.
- Branch network isn’t national. If you live in the West or Midwest, you may be far from a First Citizens branch and likely won’t get in-person help.
- Speed can be inconsistent. Customer testimonials around the web mention communication delays after documentation is submitted.
- Fees may be higher for small loans. Like many established banks, origination fees and closing costs can add up when the loan balance is small.
First Citizens vs. other types of mortgage lenders
If your goal is to pay off your house early, a conventional 30-year loan, even from a bank as stable as First Citizens, may be the wrong weapon. A lender like Churchill Mortgage has built its entire process around a 15-year fixed-rate plan. Our Churchill Mortgage review explains how they structure that shorter term and why some buyers end up saving tens of thousands in interest.
On the other hand, you might prefer a digital lender that displays live rates on its homepage. New American Funding is one of the many we’ve profiled. That New American Funding review digs into their turnaround times and their mortgage products for first-time buyers.
None of this makes First Citizens a bad choice. It just means your decision will largely come down to whether you value the ability to sit across a desk from a loan officer or prefer blazing-fast online service.
Questions to ask before you lock in
- Can you lock the rate for 60 days, and how much does it cost to extend if construction or closing is delayed?
- Will you match a written quote from another lender if I bring it to you?
- For a 20% down payment, will the origination fee be expressed as a flat amount or percentage of the loan?
- Do you keep the servicing if I refinance with you another time?
- What’s your current average close time for my loan type in my state?
The answers to these questions will tell you more than any brand name. Get them in writing before you sign the final Loan Estimate. And unless the numbers match your expectations, keep shopping. The worst that can happen is you come back to First Citizens with a better competing offer.