Despite many innovations in the lending process that made mo…

Despite many innovations in the lending process that made mortgage loans more accessible and affordable to the general public, many potential borrowers faced considerable barriers in qualifying for a loan and making a down payment. Which of the following types of loans was designed for a borrower with weak credit, those who seek 100 percent financing, or who cannot document their income?

Suppose you are considering the purchase of a small apartmen…

Suppose you are considering the purchase of a small apartment building. Potential gross income in year 1 is expected to be $120,00. You have estimated that operating expenses and expected vacancy and collection losses for the first year will be $35,700 and $6,000, respectively. No capital expenditures are forecasted. The purchase price of the property is $1,100,000 and you are planning on obtaining a $825,000 mortgage loan with a 4% interest rate that will be amortized over 25 years. What is the debt yield ratio?