NEW LOAN PRODUCT WITH LITTLE/NO REHAB
CIC has a new, faster 3-year adjustable mortgage product for buildings needing little or no rehab. Terms differ from our standard adjustable loan product (below):
- 10-Year term, 25-year amortization
- 75% Loan to value
- Reduced interest rate; ask a loan officer
- Modest prepayment penalty during the first 3 years
- Expedited processing.
Contact a CIC loan officer to discuss if this will fit your needs.
STANDARD ADJUSTABLE RATE MORTGAGES
RATE: Ask a loan officer for current rates.
Usually 10 years with a 25-year amortization
Personal recourse/guarantee normally required
MAXIMUM LOAN TO VALUE:
80% of projected after-rehab value for 3-year adjustable loans;
70% of projected after-rehab value for 5-year adjustable loans
MINIMUM DEBT COVER:
NO penalty or “lockout” period on ARMs
Normally 3% [IMPORTANT: This includes more free services than at a bank; ask a CIC loan officer about it] Negotiable for loans over $1 million
Compare your CIC bottom line with other lenders who charge legal and other fees separately.
For information, call CIC at (312) 258-0070 and ask for a loan officer, or email us at firstname.lastname@example.org .
CONSTRUCTION INSPECTION FEE:
0.75% of construction amount
Prime + 3 points or permanent loan rate, whichever is higher
Appraisal: Varies according to project size
Environmental: Phase I on loans over $1 million, or on mixed-use
How are ARMs adjusted?
- The 3-year mortgage rate adjusts at 350 basis points over 3-year Treasuries, and the 5-year rate adjusts at 350 basis points over 5-year Treasuries.
- The maximum adjustment for a 3-year rate is 2% at any one change, and 5% over the life of the loan.
- For a 5-year rate, the maximum adjustment is 3% at any one change, and 6% over the life of the loan.
- All adjustments and caps apply to both increases and decreases in rates.
All rates and terms subject to change. Please call to confirm current rates.