Jessie is a lending officer at the local community bank that lends to both residential and commercial borrowers. She is well versed in both lending area. For residential mortgages she is most concerned with Loan-to-Value (LTV) and Debt-to-Income (DTI) ratios. For commercial loans she looks at LTV, Loan-to-Cost (LTC), Debt Service Coverage Ratio (DSCR) and Debt Yield. The community bank's underwriting standards are as follows: Residential LTV -80% maximum, 75% for refinance DTI - 40% maximum; 33% maximum for self-employed. Commercial LTV-55% maximum M LTC-65% maximum DSCR 1.25x minimum Debt Yield - 8% minimum Brian Schwartz is a local real estate developer. He is working with Jessie to finance both a house he purchasing and a well-located unanchored retail center he is developing. The current residential mortgage rates are 7.125% for 30-years and 6.875% for 15-years. Brian's house is located in an establish first ring neighborhood with increasing property values. The house is appraised at $850