FAQs

Basic Multifamily Loans

How can I get an application?

What is the loan term and amortization schedule on CIC loans?

What is the interest rate?

How much does CIC charge?

What are CIC’s lending criteria?

Can I use my own contractor?

Does CIC rent apartments?

How much money down is required?

What if I own my building free and clear, but do not have 20% cash equity?

Is rehab required for all CIC loans?

How long is the process from application
to closing?

Does CIC provide an approved list of contractors?

How can I get an application?

You can download the application here or call CIC at (312) 258-0070 or e-mail us at apply@cicchicago.com to receive one in the mail.

What is the loan term and amortization schedule on CIC loans?

CIC typically uses a 10-year term and 25-year amortization schedule
for its financing products.

What is the interest rate?

Since CIC provides three- and five-year adjustable rate loans,
the interest rate varies. For example, on a three-year ARM, the
interest is a combination of the three-year Treasury security rate
plus a margin. These rates are subject to change every three weeks.
Please phone for CIC’s current rates.

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How much does CIC charge?

The borrower is charged:

• a $300 application fee

• an appraisal fee, which varies according to project size

• a construction inspection fee of .75% of total rehab costs and not less
than $500

• a financing fee of three points. This includes more free services than at a bank; ask a CIC loan officer about it. Points are negotiable for loans over $1 million. Compare your CIC bottom line with other lenders who charge legal and other fees separately.

What are CIC’s lending criteria?

CIC typically looks at the building’s cash flow to support debt. We also consider loan to value. CIC does, however, have flexible financing options to make the deal work

Can I use my own contractor?

Yes. CIC’s construction staff will provide an evaluation of the financial condition and reputation of your contractor.

Does CIC rent apartments?

No. CIC is a nonprofit mortgage lender for multifamily apartment buildings in Chicagoland. We do not manage or lease apartments.

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How much money down is required?

Typically, CIC lends up to 80% of the after rehab value, requiring borrowers to contribute 20% in cash equity. There are circumstances, however, when CIC can be more flexible.

What if I own my building free and clear, but do not have 20% cash equity?

CIC also considers market appreciation as a form of equity. In most instances, we attempt to include even the loan fees in these deals to lower the amount of borrower cash required at closing.

Is rehab required for all CIC loans?

No. If the building is in good condition, we can provide an acquisition-only or take-out loan.

How long is the process from application to closing?

CIC loan process takes about 50-60 business days.

Does CIC provide an approved list of contractors?

No. Because contractors do not work for CIC, we cannot control the quality of work or timeliness of its completion. We do, however, evaluate any contractor you have selected as well as the scope of work to be performed on the building.