Community Investment Corporation: Terms and Conditions

ADJUSTABLE RATE MORTGAGES

TERMS:

Usually 20 years with a 25-year amortization
Personal recourse/guarantee normally required

MAXIMUM LOAN TO VALUE:
Normally 80% based on projected after-rehab value;

occasional exceptions made for unusual circumstances

MINIMUM DEBT COVER:
Normally 1.2

PREPAYMENT:
NO penalty or "lock in" period

APPLICATION FEE:
$250 (nonrefundable)

FINANCING FEES:
Normally 3% [Includes more services than usual; 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.

CONSTRUCTION INSPECTION FEE:
0.5% of construction amount

THIRD-PARTY REPORTS:
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 250 basis points over 3-year Treasuries, and the 5-year rate adjusts at the greater of: 250 basis points over 5-year Treasuries, or 275 basis points over 3-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 4% at any one change, and 6% over the life of the loan. All adjustments and caps apply to both increases and decreases in rates.