Compare ratio calculations to the standards outlined and comment on this loan's viability.

Loan-to-value ratio= ($1,000,000/$1,400,000) *100%= 71.43%

Debt Service Coverage Ratio= Net Operating Income/ Annual Debt Service= $125,000/$95,000= 1.32

Operating Expense Ratio= Total Operating Expenses/ Gross Income= $90,000/$200,000= 45%

Debt Yield Ratio = NOI/Loan Amount x 100% = $125,000/$1,000,000 x 100% = 12.5%.

Debt Ratio = Monthly Debt/Gross Income = $4,200/$12,000 = 35%

Answer rating: 100% (QA)

Lets evaluate each ratio 1 LoantoValue Ratio LTV The ratio is 7143 which means the loan amount is 71... View the full answer