Which statement is true about permanent loans for income producing properties? They often have prepayment penalties They
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Question:
- Which statement is true about permanent loans for income producing properties?
- They often have prepayment penalties
- They usually include some amortization of the principal amount during the loan term
- They require a debt service coverage ratio higher than 1:1 relative to the net operating income
- All of the above
- Why does a construction loan have more risk to the lender than a permanent loan?
- The property is not generating cash flows to service the debt
- Uncertainty about what the demand for the property will be upon completion of construction
- Uncertainty about when the property will be completed due to a whole host of issues
- All of the above
Related Book For
Understanding Financial Accounting
ISBN: 9781119406921
2nd Canadian Edition
Authors: Christopher D. Burnley
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