Kung-McIntyre Enterprises is purchasing an office building for $3 million. Expected first-year NOI is $240,000. Far East Mortgage will provide 25-year financing at 6 percent interest; Far East requires an 80 percent loan-to-value ratio and a 1.30 debt-coverage ratio (DCR). Based on this information, what is the largest loan Far East will provide?

Answer rating: 100% (QA)

To determine the largest loan that Far East Mortgage will provide we need to consider the loantovalu... View the full answer