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Question
Maximum Loan Size
The maximum amount that the Stage Coach Bank and Trust will lend is determined by the bank credit committees loan underwriting standard. This standard looks at the property ability to support a minimum Debt Service Coverage ratio of 1.4x and a maximum 65% loan to value. The asset presented to committee has adjusted NOI of $ 5 million. The loan officer believes the property would trade at a cap rate of 8%. Loans on similar properties have ten year terms with interest rates of 7% and 25 year amortization schedules. How much will the bank lend?
Answer
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Related questions
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General
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