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Question $(4)$

First Omega Bank has a $$4,200,000$ loan secured by Property J$.$ Property J has an existing net operating income $($NOI$)$ of $$490,000$ and a stabilized NOI of

$$450,000.$ Market$-$oriented financing terms include interest rates of $8$ percent and amortization periods of $25$ years. The lender's targeted DSC is $1\mathrm{.}20.$ Besed

on the maximum supportable loan amount, does this project support the existing loan? If not, what is ihe shortfall?

Yes. There is no underwriting shortfall.

No$.$ The shortfall is $$151,111.$

No$.$ The shortfall is $$208,793.$

No$.$ The shortfall is $$280,000.$

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