An office property was sold/bought for $435,000, while it was appraised at $425,000. The NOI is projected to be $31,370 in year 1. The bank is willing to lend up to 75 % LTV. Regardless of the LTV, the borrower decides to borrow $295,000 at an interest rate of 7% for 25 years with monthly payments.

True or False: The maximum loan amount per the underwriting guidelines is $326,250

True

False